The ESI (Employee State Insurance) registration is given to the employees in India to ensure some security for the employees and their families. This registration is provided under ESIC (Employee State Insurance Corporation). ESIC is an autonomous self-financing body that is controlled by the ESI Act 1948. For the employees who exceed the minimum bar of a maximum salary of 15,000, it is obligatory for them.
ESI registration is one of the best schemes for the security of employees and their families. It was mainly introduced to provide security to workers working in private sector companies in India. It works to provide immediate treatment to any worker in case of any unforeseen circumstance related to the health of the employee or family. The worker can get benefits from the ESI registration as many times as needed during the working years. Here, let us see read about The Process Required For ESI Registration and more.
In case of any injury to the employee, he can ensure his complete salary at the end of every month by providing the required documents. This scheme helps thousands of employees annually to manage their expenses of the hefty amount required for treatment. Every organization that has more than ten employees working in the organization is bound to provide filing ESI returns to every employee. It is compulsory for both the company and the employee. Here, let us see read about The Process Required For ESI Registration and more.
What is ESI?
ESI stands for Employee State Insurance, which is a self-financing social security and health insurance scheme for Indian workers. It is managed by the Employees’ State Insurance Corporation (ESIC), a statutory body formed under the ESI Act of 1948. The scheme provides medical and cash benefits to employees and their dependents in case of sickness, maternity, disablement, or death due to employment injury. Employers and employees both contribute to the ESI fund, and the benefits are provided based on the contributions made.
Benefits of ESIC Registration
ESIC registration offers several benefits to both employers and employees. For employers, it helps in compliance with legal requirements, enhances employee welfare, and improves the company’s reputation as a socially responsible organization. For employees, it provides access to quality healthcare services, financial support during periods of illness or injury, maternity benefits, and disability benefits. Additionally, ESIC registration helps in attracting and retaining talent by offering comprehensive social security benefits to employees.
Eligibility for ESI registration
There are a few criteria that need to be followed while considering the eligibility for ESI registration. Any organization or company that has more than ten employees and pays a basic salary of INR 15,000 is supposed to register for ESI. Such companies must register with the ESIC, fifteen days from the applicability time. Small businesses, that do not have employees, can register voluntarily for this scheme.
However, it is a must for some specific organizations to provide ESI registration to their employees. These organizations include restaurants, shops, construction companies, editing, and publishing houses, and employees working in theatres and cinemas. Also, the Central and State government does not aid hospitals and educational institutions.
Reasons to register for ESI: –
There are many benefits that workers get by registering for ESI. Some of the major benefits of ESI registration are mentioned below: –
- Healthcare expenses for elderly persons are taken care of by the government.
- Health insurance is provided to the employee as well as all the family members.
- Paid leaves and pregnancy benefits are provided to women during pregnancy.
- If any employee passes away during his/her job then their family will be provided with a monthly salary equal to 90% of the total income.
- In case of prolonged illness, around 70% of the total salary can be claimed till the time employee is not certified fit to work again.
- If the employee faces any temporary or permanent injury during working hours then there is a provision of monetary benefits.
- In case of the death of the employee due to any reason, financial aid of up to 15,000 is provided for the funeral costs.
- If the employee is unemployed, and the reason for unemployment is not related to the employee, then a minimum grant of two years is provided to the employee.
- Other than the above-mentioned benefits, there are also financial benefits provided to employees after retirement.
So, these were the major benefits of the several benefits that an employee can get after ESI registration. Hence, it is important to register for ESIC, to get the benefits and make one’s life more secure. Now, let’s see some of the Documents Required for ESI Registration.
Required Documents for ESI Registration
To verify the employment status of the employee, one has to provide various documents to the government of India. As the registration process is made online, the employee doesn’t need to provide any hard copy of the required testimonials. The following is a list of some required documents during the time of ESI registration: –
- A canceled cheque.
- Bank statement copy.
- A copy of the license issued in the organization’s name.
- Financial statement of the company’s copy.
- A copy of the power bill.
- A copy of the board members’ decision.
- Lease or rent contract copy.
- A copy of each partner or director’s voter ID and PAN.
- A duplicate certificate of registration or incorporation.
- And, the list of each whom the company or contractor employs directly.
These were the main documents required during the process of ESI registration. Along with the documents mentioned above, the following documents are also required in some cases.
If the employee is ESIC-registered: –
- Appointment date.
- Information about employee insurance.
If the employee isn’t ESIC-registered: –
- Address and birthdate of the employee.
- Name of the employee.
- Employee’s name of father or husband.
- Employer insurance number.
- Company or organization’s name.
- Phone number and address of the employer.
- Employer ID number.
- Information about the previous employee.
- Basic information about the nominees like name, mobile number, e-mail address, and many other required things.
- Bank details of the employee including account number, IFSC code, branch name, bank name, etc.
So, these were documents required in case the employee is or isn’t registered for ESIC. That was all about the documents required to complete the process.
Compliances After ESIC Registration
After ESIC registration, employers are required to comply with various legal obligations to ensure the smooth functioning of the scheme. This includes timely payment of contributions, maintaining accurate records of employees, providing necessary information to ESIC authorities, and cooperating with ESIC inspections and audits. Employers must also ensure that employees are aware of their rights and benefits under the scheme and facilitate their access to healthcare services and other benefits as per ESIC guidelines.
Returns To Be Filed After ESIC Registration
After ESIC registration, employers are required to file various returns and reports with ESIC authorities to maintain compliance with the scheme. This includes monthly contribution statements detailing the wages and contributions of employees, half-yearly return of contributions, and annual return of contributions. Employers must ensure timely and accurate filing of these returns to avoid penalties and maintain good standing with ESIC authorities. Additionally, any changes in the employment status of employees, such as resignations, terminations, or new hires, must be promptly reported to ESIC authorities.
Process of ESI registration: –
As the process of ESI registration is shifted from manual mode to online registration, it has become way easier than before. One can easily get registered in very less time, by following the below-mentioned steps. These steps will help you to complete the registration process quite easily and seamlessly.
- The first step is to sign up on the ESIC portal: https://www.esic.nic.in and it is an easy step, similar to any other sign-up page. After filing the required details, the first step is completed.
- After signing up, a mail is received on the employee’s registered email ID, confirming the password and username provided. The password and username are important as it helps to open the portal till the time you are working in the organization.
- Then one must log in to the portal, and a new page will appear where the registration form is available, for the new employee. The employee then must fill in all the details along with the employer and organization details. In the end, one must click on the submit button to complete the registration form.
- The registration will the completed after doing the payment for registration. The registration fee is a nominal amount, that can be paid online.
- In the last step, the employee will receive the 17 digits registration number, which is generated by the ESIC portal. It ensures that the employee is successfully registered for the ESIC scheme.
Hence, in this way, any new employee can complete the registration process on the ESIC process. It is not a lengthy process if you have all the required documents with you.
Conclusion: –
Hence, that was all the major information about the ESI registration process and its requirement for the employees. Every employee must take the ESI scheme seriously, and get the benefits of it for the complete family. If you still face errors while registering for the scheme, then you can take help from an expert or a friend.
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FAQs
What is the ESI Code number?
The ESI Code number is a unique identification number assigned to employers and their establishments upon registration under the Employees' State Insurance (ESI) scheme. It serves as an identifier for the employer and is used for various administrative purposes, including payment of contributions and filing of returns.
What is the difference between ESI and ESIC?
ESI stands for Employee State Insurance, which is a social security and health insurance scheme for Indian workers, while ESIC stands for Employees' State Insurance Corporation, which is the statutory body responsible for administering the ESI scheme. ESI refers to the scheme itself, while ESIC refers to the organization that manages and oversees its implementation.
What documents are required for PF ESI registration?
The documents required for ESI registration typically include:
- PAN card of the employer
- Certificate of registration (for companies)
- Memorandum and Articles of Association (for companies)
- Partnership deed (for partnerships)
- Address proof of the establishment
- List of employees along with their details
- Bank account details
- Any other documents as required by ESIC authorities
What is the minimum salary for ESI?
The minimum salary threshold for coverage under the ESI scheme is ₹21,000 per month. Employees earning wages up to this threshold are eligible for coverage under the scheme, while those earning above this threshold are exempt from ESI coverage
How long does ESI registration take?
The duration of ESI registration can vary depending on factors such as the completeness of documentation, verification process, and workload of ESIC authorities. In general, ESI registration typically takes around 15-30 days from the date of submission of the application, provided all requirements are met.
What are the basic requirements to be eligible for ESI?
The basic requirements to be eligible for ESI coverage include:
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