ESI Registration

What is ESI Scheme?

Employee State Insurance (ESI) is administered in accordance with the 1948 ESI Act. It is a government programintended to give employees social security benefits. The Employee State Insurance Corporation is responsible for overseeing the administration of this program (ESIC). In order to be eligible for the program, employers must properly register their enterprises with ESIC and provide worker data.

ESI Act

Regardless of its geographical location, every organised institution including men or women is considered an establishment under the terms of the Employee State Insurance (ESI) Act. This includes retail stores and commercial establishments, which must sign up for the ESI program if they have ten employees—or twenty in some states—and these employees make up to Rs. 21,000 (or Rs. 25,000 for people with disabilities) every month.

Who Can Register with ESI?

The official notification states that the following state government-affiliated entities are covered by Section 1(5) of the ESI Act:

1. Stores that sell goods
2. Hotels or restaurants with a sales-only focus
3. Theatres for films, with preview areas
4. Organisations pertaining to automobile transportation
5. Newspaper companies (not covered by the Factory Act)
6. Exclusive medical facilities
7. Exclusive educational establishments.8Casual laborer’s used by bodies or corporations in municipalities

Additionally, the Central Government has included the following central government-related entities to the ESI Act’s Section 1(5) coverage:

1. Stores selling goods
2. Hotel chains and eating places
3. Vehicle-related establishments
4. Theatres, including advance screening rooms
5. Newspaper Companies
6. Companies involved in port trusts, insurance, airport management, non-banking financial companies (NBFCs), and storage

The Perks of ESIC Registration

Employees who register with ESIC are eligible for a wide range of benefits that protect their family, income, and health. The primary benefits consist of:

Healthcare coverage: – To ensure their well-being, employees and their families can get comprehensive medical care.

Retirement Health Benefits: – Upon payment of an annual premium of Rs. 120, retired personnel and their spouses are entitled to continue receiving medical benefits.

Services for Maternity: Pregnant women are guaranteed a month’s extension of their whole salaries as maternity benefit, which guarantees them a stable income throughout childbirth. This benefit lasts for 26 weeks.

Illness allowance: – During officially recognized sick periods, employees are entitled to earn 70% of their pay for a maximum of 91 days annually.

Prolonged Illness Benefit: – For a maximum of two years, extended benefits at 80% of salaries may be granted to employees for specific severe and long-term illnesses.

Augmented Sick Pay: – Employees undergoing sterilization receive full pay compensation; a vasectomy takes seven days, and a tubectomy takes fourteen.

Dependent Support: – In the sad event that an employee passes away from a work-related accident, their dependents get a monthly payment equal to 90% of the deceased employee’s income.

Short-term Disability Allowance: – Workers who sustain an accident at work are entitled to a payment equal to 90% of their salary for the duration of their incapacity.

Lifelong Disablement Allowance: – Employees who are permanently disabled are entitled to a monthly payment equivalent to 90% of their salaries, as determined by a Medical Board, based on the extent of their loss of earning capability.

Burial expenses: – The dependents or the person performing the final rites receive a predetermined amount of Rs. 15,000 to help with funeral costs.

Documents Needed to Register with ESI

In order to register online for ESI (Employee State Insurance) on the ESIC website, the following papers must be submitted in digital or electronic format:

• Evidence of Business Registration: Depending on the kind of business, one of the following:
• Factories Act Certificate of Registration.
• Certificate of Registration issued subject to the Shops and Establishment Act.
• Establishment Certificate of Incorporation, relevant for the kind of entity:
• Certificate of Company Registration for businesses.
• For partnership businesses, a partnership deed.
• The establishment’s certificate of registration for the Goods and Services Tax (GST).
• Documents of Company Founding:
• Association Memorandum (MoA).
• The Association’s Articles (AoA).
• Proof of the Establishment’s Address: Any of the following may be submitted:
• A recent utility bill (no more than three months old for gas, electricity or phone).
• The terms of the establishment’s property rental agreement.
• The location of the establishment’s property tax receipt.
• Employee Details: An exhaustive roster of every worker in the company.
• PAN Cards: PAN information for the company and each employee.
• Details of Employee Compensation: Information on each employee’s pay and salary.
• Financial Details: A voided cheque drawn on the business’s bank account.
• The details of the company’s leadership include a list of the directors.
• A list of the shareholders of the business.
• Employee Attendance Register: Keeping track of each worker’s presence.

After ESIC Registration Regulations

Following ESI (Employee’s State Insurance) registration, an establishment needs to file the necessary ESI returns and follow certain compliance requirements. These responsibilities are essential to maintaining smooth operation and compliance with legal requirements. The following are the required compliances:

• To document every employee’s attendance, the institution has to keep a strict attendance register. This acts as a foundational record for internal record-keeping and compliance.
• Carefully kept records of employee salaries should be kept in a register. Ensuring compliance with ESIC requirements and transparent reporting of wage information are critical functions of this registry.
• Every inspection on the property needs to be documented in an inspection book. Transparency and regulatory compliance are facilitated during official inspections thanks to this.
• Monthly returns and challans must be sent in by the business within the first 15 days of the following month. This entails giving information on the personnel, their attendance records, and the relevant ESIC contributions.
• It is required to keep a record of all accidents that occur on the property. For compliance, accurate accident reporting is necessary. It makes it easier to take a proactive stance on workplace safety.