All About Employee’s State Insurance (ESI) Applicability And Registration

Procedure for Registration in Employee’s State Insurance (ESI)

WHAT IS ESI ?

Employee’s state Insurance (ESI) is a safe tool for social security and health insurance scheme for Indian workers. The ESI fund is managed by ESI Corporation according to the rules and regulations stipulated by ESI Act 1948, which oversees the provision of medical and cash benefits to employees and their family through its large network of dispensaries, hospitals and branches throughout India. ESI is an autonomous corporation under Ministry of Labour and Employment, Government of India. ESI is applicable in all the states except Manipur, Sikkim, Arunachal Pradesh and Mizoram whereas in union territories it applies only in Delhi and Chandigarh.

WHO IS REQUIRED TO GET REGISTERED ?

It is mandatory to take registration for non seasonal factories employing 10 or more persons and has been extended to other undertakings and newspaper establishments employing 20 or more persons. ESI shall be deducted and paid for employees where wages are less than Rs. 15000/- per month as wages, engaged either directly or through contractor.

HIGHLIGHTS OF ESI

Contribution of employer is 4.75% of wages and that of employee is 1.75% of wages towards ESI and employees earning upto Rs. 100/- a day are exempted from payment of their share of contribution.

BENEFITS UNDER THE ESI SCHEMA AREA AS FOLLOWS

  • Employees enjoy medical treatment for the person insured and their families
  • Supply of all drugs
  • Ambulance services
  • Super-specialty consultation, etc.
  • Insured persons also enjoy sick pay benefits.

DOCUMENTS REQUIRED

  • Application for registration under ESI
  • Documents relating to the constitution of the organization (Incorporation Certificate, Partnership Deed, etc.)
  • List of Partners or Directors
  • Address proof
  • Month-wise employee details with their Date of joining and Rate of Salary
  • Copy of PAN card
  • Cancelled Cheque (Proof of Bank)
  • Copy of Registration Certificate in other Acts

GENERAL PROCEDURE

  • Step 1- Application

To register for ESI, the Employer must apply to the concerned Regional Office.

  • Step-2- Obtain code number

After submission of application obtain an identification number called the Code number. The code number is a 17 digit unique identification number.

  • Step 3- Maintain records

Employer has to maintain various registers like register of employees, Accident book, Inspection book, etc.

  • Step 4- Deposit of Contribution & Return

Employer is required to submit return and his share of contribution on due date.

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