ESI Registration Online - An Overview
Employee State Insurance or ESI is a scheme commenced by the Government of India to offer medical, monetary and other advantages to workers. ESI is managed by an autonomous authority - Employee State Insurance Corporation – which lies under the jurisdiction of the Ministry of Labour and Employment.
By law, any company that has more than 10 employees mandatorily need to have ESI. In some states, the number of employees is 20.
At Efillings, we assist you with online ESI registration. Our services comprise of:
- Free first-time consultation
- Data validation of all the submitted documents
- Assign a dedicated affiliate to process the application
- Get the PF and unique ESI Number within the shortest time possible
Also, taxpayers with a turnover of less than Rs.1.5 crore can choose composition scheme to get rid of tedious GST formalities and pay GST at a fixed rate of turnover.
Benefits of ESI Registration
ESI Registration ensures that employees enjoy the following advantages under the Employees’ State
Medical AidFrom the very first day of employment, registered ESI members and their families are entitled to enjoy the benefits of complete medical care and insurance.
Maternity AidPregnant women are entitled to maternity benefits that are payable upto twenty six weeks. This period can be extended by 30 days on medical advice. To qualify for maternity benefits, employers are required to contribute their wages for 70 days in the preceding two contributions periods.
Disablement BenefitsDisabled employees can get 90% of their monthly salaries as disablement benefits.
Sickness BenefitsAbsence from work during illness can be taken for a maximum of 91 days per year along with 70% of the monthly wages.
Dependent BenefitsIn the unfortunate event of the demise of an employee during the employment, the dependents of the deceased will receive 90% of his/her monthly salary.
Funeral ExpensesThe family of the deceased employee is entitled to an additional amount of Rs.10,000 towards funeral expenses.
Confinement ExpensesIn the case of confinement of an insured woman or wife of an employee occurring in a place with no medical facilities under the ESI scheme, confinement expenses can be availed.
In addition, some of the need-based benefits:
Permanently physically challenged, insured employees are entitled to undergo vocational rehabilitation training at VRS.
Physical RehabilitationAvailable to employees in the case of physical disablement due to an employment injury or occupational hazards.
Old Age Medical CareAn annual payment of Rs.120 ensures medical care benefits for retiring ESI employees or for those who are opting for VRS/ERS. Insured ESI members retiring on account of permanent disabilities are also entitled to the same benefits.
Extended Sickness BenefitsESI members suffering from chronic diseases can avail the extended sickness benefit for upto 2 years, provided the sick leave of 91 days are expired. Among other conditions, the criteria for eligibility for this benefit include that the concerned ESI member should have been working for at least 2 years at the onset of the sickness and its subsequent diagnosis.
Enhanced Sickness BenefitThis benefit was introduced in 1976 as a measure to encourage ESI employees to undergo vasectomy or tubectomy for family welfare. Registered ESI members willing to undergo the sterilisation procedures are eligible for enhanced sickness benefit of 100% of their daily average wages. This benefit also allows a recuperating period of 7 days for vasectomy and 14 days for tubectomy from the date of surgery or admission in the hospital. Extension of this benefit can also be availed in case of post-operative complications
Steps covered under ESIC (Employees' State Insurance) Registration Process
When you choose Efillings for ESI Registration, we complete it in three simple steps that take minimum possible time.
Form Filling: The ESI registration form is filled by you completely and the necessary documents are submitted.
Verification: Every detail you provide is cross-checked to ensure there are no errors or omissions made. This may take a maximum of 12 days.
Submission: The ESI application along with other legal paperwork is submitted by us which requires 2 working days.
Your part of the ESI registration is completed at this point. The government reviews the application and processes your registration. Once granted, Efillings sends you:
- The 17-digit identification code number
- Employee insurance number
- Temporary identity card
Eligibility/entities covered under ESIC Registration in India
As per the ESI Act of 1948, all establishments are eligible for ESI registration provided they fulfill the criteria of having the required number of employees in that state. The entities covered are:
Under the Employees' State Insurance Act of 1948, many establishments are eligible for registration as long as they have the required number of employees in that state. The entities covered are:
- Shops
- Cinemas
- Movie theatres
- Medical institutions
- Hotels or restaurants
- Newspaper establishments
- Private Educational institutions
- Roadside motor transport establishments
For hotels and restaurants, it is mandatory to only offer the service and not have any manufacturing functions. In some states, medical and educational institutes are not included. For newspaper establishments, there is no coverage under the Factory Act.
Eligibility for ESI Registration in India
The general rule to be eligible for ESI (Employees' State Insurance) registration is to have 10 or more workers. But in some regions, 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 employer.
Documents required for online ESI Registration
ESI registration requires the following documents to be submitted by the employer along with the application:
To register for ESI (Employees' State Insurance) 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
For ESI filings, monthly pay sheet is required for computing contribution amount for each employee.
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Due Dates For ESI:
- Payment: 15th of every month
- Returns: May 11th and November 11th
- Payment:
- Returns:May 25th of every month
What are the criteria for filing returns after ESI registrations are finalised?
ESI returns are to be mandatorily filed bi-annually along with the following documents:
- Register of attendance of employees
- Register of wages
- Form-6 register
- Monthly returns and respective challans
- Registration of any accidents taken place within the industrial or business premises.
How we help with ESI Online Registration?
If the processing time taken by authorities is not factored, Efillings can get your ESI (Employees' State Insurance) registration as early as 12 days. When you consult with us on ESI Online Registration you get:
- A first free consultation
- Complete application preparation that includes gathering the necessary documents to be submitted with the ESI form
- Input tax credit (GST paid on purchases)
- A thorough processing of the application at every stage starting from submission and ending with all follow-ups
- Final registration steps are taken by our expert who is appointed to respond to any question that may arise during the processing.
- We ensure our affiliates take care A-Z of the ESI registration process without any hassles. We take all the effort while you can stay focused on the business.
FAQs on ESI Registration Online
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What is the insurance number?
To recognize each employee, the ESI scheme allots a unique identification number to every worker. This number is called the insurance number and is used for all operational purposes.
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Is it required by law for an employer to register with ESIC Act?
The law of India states that it is mandatory for every employee to register within ESI. It is considered a statutory responsibility. A factory or establishment has to apply for the scheme within 15 days from the date it becomes eligible.
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After ESI registration is completed, how many returns need to be filed per year?
Once a factory or establishment is recognized within the ESIC Act, it has to file ESI returns two times per year. For each return filed, the underlying documents have to be submitted:
- A register of wages
- A register of the attendance of employees
- A register of Form 6
- Challans and returns of every month
- A register of any accidents that may have occurred on the premises of the business,