What is ESI Registration?
ESI means Employee State Insurance, which is governed by ESI Act, 1948 which is self financing social security and health insurance scheme which provides benefits like, medical, sickness , maternity , disablement and various other such as funeral expenses etc to employees and their family.
Applicability of ESI Registration?
The general law to be eligible for ESI registration is to have 10 or more workers. But in some states, ESI is applicable only if there are more than 20 employees.
Other eligibility criteria that need to be fulfilled are:
- Any employee whose gross salary is up to Rs. 21,000 per month can avail this with the help of the employer.
- Establishment Registered with EPFO.
- The contribution to ESI is 6.5% of the gross salary. It is divided as:
- 4.75% by the employer
- 1.75% by the employee
For industrial units, where there are chances of occurrence of injury or health issues at the business premise, all employees with salary less than Rs.21,000 compulsorily need to have ESI.
What are the benefits of ESI Registration?
Employees registered under the ESI scheme are entitled to a range of benefits. Employees and their families can avail medical treatment and attendance including not only medical but surgical and obstetric treatment as well. Additionally, Supply of medicines, Super specialty consultations, etc. can also be availed. Sick pay benefits also included.
Documents Required for ESI Registration?
On register for ESI, the employer has to submit the following documents along with the application:
- The registration certificate or license issued by:
- Shops and establishment Acts
- Factories Act
- Address proof
- Rent receipt of the occupied premises, mentioning its capacity
- Copy of PAN card
- Copy of bank statement
- Photocopy of the last building tax/property tax receipt
- Memorandum and Articles of Association or Partnership Deed or Trust Deed – dependent on the applying entity
- Photocopy of registration
- Certificate of commencement of production
- Registration No. of CST/ST/GST
Time Limit and Cost for ESI Registration?
ESI Registration will take at least 15-20 days subject to government approvals. Pricing for ESI Registration starts with Rs.6999/-(including government fees)