It's essential to know the information needed for ESI Application before jumping into the process! Contact Vakilsearch to make your registration process hassle-free.
In this article, we’ll learn about and determine the specifications for a few essential pieces of paperwork needed for an ESI application.
Ensure you have all the most recent and legal documentation; if there is an error, omission, or latency in the paperwork section, the request could be rejected.
But first, let us learn some basic information about ESI, its eligibility, its benefits, and the Date required for ESI registration.
What is ESI?
The term “ESI” refers to Employee State Insurance, administered by the Employee State Insurance Corporation (ESIC), an independent organization founded by legislation and housed inside the Ministry of Labour and Employment of the Government of India.
In other words, India’s Employee State Insurance (ESI) program is a comprehensive welfare program for those employed in the organized sector. To provide workers with socioeconomic protection in the case of hardship or disaster-related to their finances and health, the government implemented this program in 1952.
In addition to offering financial support, the ESI system provides health insurance to its beneficiaries. Aside from them, their family is also covered by insurance. The money for the program is mainly offered by the company’s employer and the employee’s contributions.
This article will teach you all you need to know about ESI Applications.
How To Know If You Are Eligible For ESI Application?
Any company or enterprise that is not seasonal has more than 20 employees and pays a basic income of Rs. 21,000/- is obligated to register for ESI with the ESIC 15 days from the time it becomes applicable.
However, if you are a small business and do not have employees, you can register yourself voluntarily.
Why Should You Register For ESI?
There are many benefits you might gain by registering for ESI. Some of these are explained below:
- Health insurance for the employee as well as their family.
- Healthcare expenses for the elderly.
- Pregnancy benefits for women during pregnancy, along with paid leaves.
- If an employee passes away while at the job, their family will be awarded a monthly payment equal to 90% of their total income.
After thoroughly describing the ESI application, its benefits, and its eligibility, we will now determine the requirements for some important documents needed for ESI.
What Are the Required Documents for ESI Application?
- Bank statement copy
- A copy of each license issued in the establishment’s name.
- A canceled check
- A copy of the company’s financial statement
- A duplicate of the certificate of company incorporation or registration
- A list of each person who the contractor or the company directly employs.
- A copy of the lease or rent contract.
- A copy of each director or partner’s PAN and voter ID
- A copy of the board’s decision
- A power bill copy
Along with the documents mentioned previously, the following knowledge is also necessary.
If an employee is already ESIC-registered:
- Employee Insurance Information
- appointment date
If the employee isn’t ESIC registered:
- Name of Employee
- Address and Birthdate
- Employee’s father/husband’s name
- Information about the nominees (name, mobile no, address, email id, etc.)
- Bank Details (bank name, account number, IFSC code, Branch name, etc.)
- Information about the former employer
- Employer Insurance No.
- Employer ID number
- Name of the company
- Employer’s address and phone number
ESI Application Requirement
Section 2(12) of the Employees’ State Insurance Act states that all factories employing ten or more workers must get obligatory registration under the ESI act. To put it another way, the ESI program applies to establishments with ten or more staff workers.
In India, however, the number of employees required for an organization to be eligible for registration under the ESI plan ranges from 10 to 20, depending on the location. Additionally, such firms and enterprises are required to register themselves with the ESI within the first 15 days after the date on which the ESI Scheme would begin to apply to them.
In light of this, the following types of businesses, in addition to factories, qualify for coverage under the ESI plan since they employ ten people or more:
- Shops and Establishment
- Hotels and restaurants are not involved in any manufacturing activity; instead, they are primarily in the business of selling their products.
- Theatres, cinemas, and preview theatres all rolled into one
- Infrastructure for vehicular and automobile travel on roads
- Establishments that publish newspapers (which are not considered factories according to section 2(12) of the ESI act)
- Educational establishments that are not publicly funded (those run by individuals, trustees, societies, or other organizations) & Hospitals and Other Medical Facilities (including Corporate, Joint Sector, trust registration, charitable, and private ownership hospitals, nursing homes, diagnostic centers, pathological labs)
What is the consequence of delaying an employee’s contribution deduction from their wage at the appropriate time?
When an employer registered with the ESIC fails to pay the required contribution to an employee’s ESIC, the employer will be liable to pay simple interest at the rate of 12 percent per year for each day the donation is late or not paid. In addition, the employer will be liable to pay the penalty for each day the contribution is late or not paid.
What is the ESI Code’s numerical designation?
The ESI Code number is a one-of-a-kind identifying code of 17 digits and is given to every worker employed at an ESIC-Registered factory or facility. Several 17 digits are generated after the employer has submitted the information about their employee to the ESIC website.
What Would The Requirements For Eligibility To Receive ESI Benefits be?
For an employee or worker to be eligible for the Employees’ State Insurance (ESI Scheme), their monthly income cannot be more than INR 21,000 (for non-disabled adults) or INR 25,000 (for disabled individuals).
Is Participation In The ESIC Program An Absolute Prerequisite?
Employees must sign up for the scheme if they work for a company or Organisation that falls under the ESIC law of 1948: https://labour.gov.in/sites/default/files/TheEmployeesAct1948_0.pdf
Conclusion:-
If you have any questions, need ESI application services, or want more information, don’t hesitate to contact Vakil Search. You will get quick and efficient ESI applications only at Vakilsearch, which will make your registration process easy!
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