ESI
REGISTRATION
Employee State Insurance Corporation
ESIC is a self-financing social security and health insurance scheme which provides medical benefit, sickness benefit, maternity benefit, disablement benefit and various other benefits such as funeral expenses, free supply of physical aids etc. to the employees and their family.
Choose ESI Registration because :
Provides complete medical care to employees
Includes employee’s dependants also
Mandatory for units with >10 employees
ABOUT ESIC
Units or Establishments that have 10 or more employees, drawing the wages of up to Rs.15,000 a month are required to be registered for ESIC under the ESI Act 1948. The benefits provided by the scheme are funded from the contributions raised from covered employees and their employers at the fixed percentage of wages. At present, covered employees contribute 1.75% of the wages to the ESIC and covered employers contribute 4.75% of the wages, payable to their employees. The state government also contribute 1/8th share cost of medical benefit. ESI Registration is done through Simplitax.
All Establishments and Factories employing more than 10 employees are required to mandatorily apply for ESI registration within 15 days of the ESI Act, 1948 becoming applicable to them. ESI Registration can be done through Simplitax in Delhi NCR, Mumbai, Bengaluru, Chennai and other Indian cities.
Documents Required for Registration of Society
To be Submitted by Employer:
- Registration Certificate or Licence issued under Shops and Establishment Acts or Factories Act.
- Address Proof: Latest Rent receipt of the premises you are occupying indicating the capacity in which the premises are occupied, if applicable.
- Latest building Tax/Property Tax receipt (Photocopy).
- Memorandum and Articles of Association/Partnership Deed/Trust Deed depending on the entity that is applying for registration.
- Photocopy of certificate of Commencement of production and/or Registration No. of CST/ST (or GST once it becomes applicable).
- Copy of PAN Card
- Evidence in support of the date of commencement of production/business/first sale (e.g. Copy of First Invoice).
- Month wise employment position, salary etc.
- Copy of bank statement
- To be Submitted by Employees:
- Family Photo in Duplicate
ADVANTAGES OF ESI
REGISTRATION
- Provides complete medical benefits to employees and their families.
- Includes dependents under the ESI coverage scheme.
- Employees can avail treatment at ESI hospitals and dispensaries.
- Medical expenses for approved treatments may be reimbursed.
- Offers support and benefits to employees in case of sickness, maternity, disablement, and employment injury.
- Provides access to a wide network of ESI dispensaries and hospitals across India.
APPLICABILITY OF ESI
REGISTRATION
The following establishments employing 10 or more persons are generally covered under ESI:
- Shops and commercial establishments
- Hotels and restaurants (not engaged in manufacturing activities)
- Photograph of all partners and authorized signatories
- Road transport undertakings
- Newspaper establishments
- Private educational institutions
- Private medical institutions and hospitals
Note: In certain states, ESI coverage may apply to establishments employing 20 or more employees, depending on state-specific notifications and regulations.
CONCERNS RELATED TO ESI REGISTRATION
- The ESI scheme is a self-financing social security program funded through contributions from employers and employees.
- Employers are responsible for deducting the employee's contribution and depositing both employee and employer contributions with ESIC within the prescribed time.
- Delayed or non-payment of contributions may attract interest, penalties, and legal action under the ESI Act.
- Misuse or non-remittance of employee contributions collected by the employer can result in prosecution and other legal consequences.
- Employers must maintain proper records and comply with all ESI regulations to avoid penalties and ensure uninterrupted benefits for employees.