ESIC Registration – Process, Benefits, Documents Required

 

This scheme is started for Indian employees or workers. The workers are provided with a huge variety of medical, monetary & other benefits from the employer. Any Company having more than 10 employees or worker who have a maximum salary of Rs. 15000/- has to mandatorily register it with the ESIC.

 

Under this scheme, the employer needs to contribute an amount of 4.00% of the total monthly salary payable to the employee or worker whereas the employer needs to contribute only 1.00% of his monthly salary per month of the year. The only exemption to the employee or worker in paying his contribution is whose salary is less than Rs. 100/- per day.

 

What are the benefits of ESIC registration?

 

The benefits or avail of registering under this scheme are varied. Some of them are:

1. Illness benefits at the rate of 70%, in case of any certified illness certified & which lasts for most of 91 days in any year.

2. Medical Benefits to an employee or worker & his family members

3. Maternity Benefit or profit to the women who are pregnant.

4. If the death of the employee happens while on work – 90% of the salary is given to his dependents every month after the death of the employee or worker

5. Same as above in case of disability of the employee or worker.

6. Funeral expenses

7. Old age care medical expenses

Entities covered under ESI Corporation

 

As per the government notification dated Sec 1(5) of the Employee State Insurance (ESI) Act the following entities are covered:

 

1. Shops

2. Restaurants/Hotels only engaged in sales.

3. Cinemas

4. Road Motor Transport Establishments;

5. Newspaper establishments.

6. Private Educational Institutions (PEI)

What are the documents required for ESI Corporation Registration

 

A registration certificate obtained either below the:

 

(i) Factories Act.

(ii). Shops & Establishment Act.

2. Certificate of Registration in case of Company, & Partnership deed in case of a Partnership

3. Memorandum of Association & Articles of Association of the Company

4. A list of all the employees working in the Establishment or company

5. Permanent Account Number (PAN) Card of the Business Entity as well as all the Employees working under the entity

6. The compensation details of all the employees or workers.

7. A canceled cheque of the Bank Account of the Company or Establishment.

8. List of Directors of the Company or Establishments.

9. List of the Shareholders of the Company or Establishment.

10. Register containing the attendance of the employees or workers.

 

After collection of all the mentioned documents the following procedure is to be followed for the registration of the Employee State Insurance (ESI):

 

a. Form No – 1 (Employers Registration Form) is to be downloaded & filled.

b. After downloading the PDF version of the form & filling it, it has to be submitted itself along with the mentioned documents.

 

What is the process after the form verification?

 

Step 1: After verification of the form, the govt. will issue a seventeen digit unique number.

Step 2: The employee or Worker who is registered under this scheme will provide the employer with the filled form & photographs of his own family members as a part of the process of registration & will get an Employee State Insurance (ESI) card after registration.

Step 3: Any change in the Company or its employees will be intimated to the ESI Corporation.

 

How many returns are filed per year after the registration is finalized?

 

The following or subsequent documents are required or needful for the filing of the returns:

1. Register of Attendance of the Employees or workers.

2. Form 6 – Register

3. Register of wages

4. Register any accidents that have happened on the premises of the business

5. Monthly returns & challans