ESI Registration

Employee’s State Insurance(ESI) is a self-financing social security and health insurance scheme for Indian workers. ESI Registration is mandatory for employers having 10 or more employee. For all employees earning Rs.15,000 or less per month as wages, the employer must contribute 4.75% and employee must contribute 1.75% towards ESI. The ESI fund is managed by the ESI Corporation (ESI) according to rules and regulations stipulated therein the ESI Act 1948, which oversees the provision of medical and cash benefits to the employees and their family through its large network of branch offices, dispensaries and hospitals throughout India. ESI is an autonomous corporation under Ministry of Labour and Employment, Government of India

Employee’s State Insurance(ESI) is a self-financing social security and health insurance scheme for Indian workers. For all employees earning INR 15000 or less per month as wages, the employer contributes 4.75 percentage and employee contributes 1.75 percentage, total share 6.5 percentage. This fund is managed by the ESI Corporation (ESI) according to rules and regulations stipulated therein the ESI Act 1948, which oversees the provision of medical and cash benefits to the employees and their family through its large network of branch offices, dispensaries and hospitals throughout India. ESI is an autonomous corporation under Ministry of Labour and Employment, Government of India. But most of the dispensaries and hospitals are run by concerned state governments. Employees registered under the ESI enjoy a range of benefits under the scheme. Employee enjoy medical attendance and treatment for the person insured and their families including full range of medical, surgical and obstetric treatment, supply of all drugs, ambulance services, super-specialty consultation, etc., In addition, to the medical care, insured persons also enjoy sick pay benefits. Registration with ESI provides the employee with tremendous benefits and improves worker morale and retention. CivilIndia can help your Company obtain and manage ESI Registration.

ESI Registration Process

Step 1: ESI Registration

You can obtian ESI Regisration in 12 to 20 days, subject to Government processing time.

Step 2: Application Preparation

An ESI Expert will prepare your ESI Application along with the necessary supporting documents that needs to be submitted for ESI Regisration.

Step 3: Application Processing

Once the application is prepared and submitted, the concerned ESI Office will process the application and may request for more information or documents.

Step 4: ESI Registration

While processing the application, an ESI Expert will help you respond to any query or request for document (if required) and obtain ESI Registration.

Frequently Ask Questions (FAQs)

S.No.	Query
1	What is ESI?
	ESI stands for Employee’s State Insurance a self-financing social security and health insurance scheme for Indian workers. ESI provides employees with less than Rs.15,000 monthly wages health and sickness benefits through a statutory scheme.
2	Who has to obtain ESI Registration?
	Employees having 10 or employees have to register for ESI irrespective of the salary of the employees. In case all the Employees employed in the organization have a monthly wages of over Rs.15,000, then the organization would have to file a NIL return.
3	ESI contributions should be made for which employees?
	ESI contributions must be made for all employees having a salary of less than Rs.15,000 per month. The employer must contribute 4.75% and employee must contribute 1.75% for ESI.
4	What is the procedure for obtaining ESI Registration?
	To register for ESI, the Employer must apply to the concerned Regional Office and obtain an identification number called the Code number. The code number is a 17 digit unique identification number.
5	What are the documents required for obtaining ESI Registration?
	Application for registration under ESI along the documents relating to the constitution of the organization (Incorporation Certificate, Partnership Deed, etc.,), proof of commencement of business, list of Partners or Directors, address proof and month-wise employee details. Additional details may be required on a case to case basis.
6	How is an Employee registered under ESI?
	At the time of registration, the Employee is required to fill in Form – I and submit a family photo in duplicate to the employer, which is in turn submitted by the Employer to the ESI Office. The employee is then allotted an insurance number and issued a temporary identity card for availing medical benefits for him/herself and his/her family. Thereafter, a permanent identity card is issued, which can be used by the employee even after transferring jobs.
7	What are the employment records that must be maintained for ESI coverage?
	In addition to the Roll, Wage Record and Book of Accounts, the following additional documents must be maintained for ESI coverage: i) Employees Register, ii) Accident Register and inspection book.
8	What are continued compliance requirements?
	Organizations under ESI coverage must file annual return showing the changes if any during the preceding year. Return of contributions enclosing copy of all ESI contributions paid must be submitted once every six months.
9	When is the deadline for ESI payment due?
	There are restrictions on the transfer of ownership interest in a Partnership firm. A Partner cannot transfer his/her interest in the firm to any person (except to the existing partners) without the unanimous consent of all other partners.
10	What is the penalty for not paying ESI contribution?
	Non-payment or delayed payment of Employee contribution deducted from the wages of the employee is punishable under Indian Penal Code 406. Non-payment or delayed payment of Employer contribution will be liable to pay simple interest at the rate of 12% per annum in for each day of default or delay in payment of contribution. In addition to the delayed payment interest, damages at the rate of upto 25% may also be applicable.

ESI Registration Highlights

ESI:

Employee’s State Insurance Corporation(ESI) is a self-financing social security and health insurance scheme for Indian workers. The scheme provides Employees with a comprehensive Social Security Scheme for protecting the employees during sickness, injury or disability.

ESI Benefits:

Employee’s State Insurance Corporation(ESI) is a self-ESI provides employees registered the scheme with a host of medical and sickness benefits. Employees registered under the scheme can avail medical facilities and are also entitled for sick pay benefits.

ESI Registration:

ESI Registration for Employers having more than 10 employees. The Employer must contribute 4.75% of the Employees wages towards ESI. Once, registered the organization is allotted a 17 digit unique identification code.

ESI Contribution:

ESI contributions must be made by the employer for all employees having a salary of less than Rs.15,000 per month. The employer must contribute 4.75% and employee must contribute 1.75% of the wages for ESI.

Continued Compliance:

Organizations under ESI coverage must file annual return showing the changes if any during the preceding year. Return of contributions enclosing copy of all ESI contributions paid must be submitted once every six months.

ESI Payment Deadline:

ESI Contributions must be paid by the employer in to a bank authorized by the Corporation within 21 days of the last day of the calendar month in which the contribution is due.