Reasons to Register for ESIC
Employee State Insurance Corporation Registration
Employee State Insurance Act, 1948 was established with the objective to provide security to the workers related to the financial-social and health security. All the establishment and units employing 10 or more employees, earning INR 21,000 or less per month are required to be registered under the Act. Under this Act, employer contributes 4.75% and employee contributes 1.75% of the wages earned per month. This fund is managed by the ESI Corporation which provides medical, sickness, disablement, maternity benefit, and various other benefits like funeral expenses, provision of supply of physical aids, etc to the employees and their family.
The ESI scheme helps the organisation in such a way that employees being socially and medically covered works with enthusiasm, registration under ESI improves the employee morale and retention. Establishments or units are required tto register under the Act within 15 days of its applicability. Busibells can help you obtain and manage ESI registration.
Process to Register
- Application form with requisite documents to be submitted.
- Verification is done after submission of the documents.
- Other documents are submitted (if required) in respect of the application.
- Unique ID code is obtained.
- Registration Certificate or License issued under the Shops and Establishment Act/ Factories Act.
- Copy of PAN Card.
- Address Proof- Latest Rent receipt, if applicable AND copy of property tax receipt.
- MOA, AOA/ Partnership Deed/ Trust Deed of the organisation.
- Evidence in support of Date of Commencement of production/ business/ copy of invoice of first sale.
- Salary details of the employees (month wise).
- Copy of Bank statement.
- Family photo in duplicate.
Frequently Asked Questions
For an employer to get registered under ESI Act, an application in the Form 01 shall be made within 15 days of the act becoming applicable on the organisation.
Establishments having 10 or more employees are required to get themselves registered under the Act. It is mandatory for the employer to get registered.
A 17 digit unique code number is allotted by the ESI Corporation on submission of the required information by the employer.
No, once a factory or establishment is covered under the Act, it continues to be covered forever despite the fall in minimum number of the employees or a change in the manufacturing activity of the establishment.
Employee is eligible to be covered till the end of the contribution period even if the wage (excluding overtime) earned by him exceeds the limit of INR 21,000/- after the beginning of the contribution period.
In case of accidents, accident report in Form 12 and absence verification report such as employee’s attendance, wage details, etc is required to be submitted by the employer.
- Directly employed by the principal employer within premises or any department/ branch of the establishment;
- Employees of the immediate employer who are-
- Being employed on any work of the establishment in the premises itself;
- Being employed for the work which is supervised the principal employer or his agent outside the premises;
- Lent or let on hire to the principal employer for the work of the establishment;
- The paid directors of the establishment.
- Member of the Indian Armed Forces
- Employee receiving wages above the ceiling limit
Packages on Offering
- ESI Registration for businesses having less than 20 employees.
- ESI and PF registration for businesses having less than 20 employees.
- ESI and EPF registration for businesses having less than 50 employees.