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 framed 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. IndiaFilings can help your Company obtain and manage ESI Registration.
|Submission of required documents completed in all aspects.||Preparation and submission of application by the professional.||Issuance of License.||20 to 25 working Days subject to government processing time.|
BENEFITS OF EMPLOYEES’ STATE INSURANCE CORPORATION REGISTRATION
Complete medical care is available to an Insured person and his family members from the day he enters into insurable employment.
Sickness Benefit in the form of cash compensation at the rate of 70 per cent of wages is payable to insured workers during the periods of certified sickness for a maximum of 91 days in a year. In order to qualify for sickness benefit the insured worker is required to contribute for 78 days in a contribution period of 6 months..
Funeral benefit is a cash payment which is available on the death of an insured person towards the expenses on his funeral, the amount not exceeding Rs.2,500/-.
DB paid at the rate of 90% of wage in the form of monthly payment to the dependants of a deceased Insured person in cases where death occurs due to employment injury or occupational hazards.
The benefit is payable in cash to an insured woman for confinement / miscarriage or sickness arising out of pregnancy / confinement or premature birth of child or miscarriage. For confinement, the duration of benefit is 12 weeks, for miscarriage 6 weeks and for sickness arising out of confinement etc. 30 days. The benefit is allowed at about full wages.
Temporary disablement benefit (TDB) : From day one of entering insurable employment & irrespective of having paid any contribution in case of employment injury. Temporary Disablement Benefit at the rate of 90% of wage is payable so long as disability continues. Permanent disablement benefit (PDB) : The benefit is paid at the rate of 90% of wage in the form of monthly payment depending upon the extent of loss of earning capacity as certified by a Medical Board
Frequently Asked Questions (FAQs)
Documents Required for Registartion?
Registration Certificate or License issued under Shops and Establishment Act or Factories Act, if available.
Memorandum and Articles of Association or Partnership Deed or Trust Deed, depending upon the constitution of the ownership of the establishment.
Certificate of commencement of production and/or Registration No. of CST/ST, if available.
Month wise employment position, salary etc.
List of Partners or Directors
PAN Card and Address Proof of the Factory/Firm/Establishment
Evidence in support of the date of commencement of production /business
Copy of bank statement
Latest Rent Bill of the premises you are occupying indicating the capacity in which the premises is occ if applicable.
Latest building Tax/Property Tax receipt (Zerox).
Information Required for Registartion?
1. Name of the Factory/Establishment
2. Complete Postal Address
3. Mobile no
4. Email ID
5. Location of Factory/Establishment
(a) State…………….. (b) District ……..…. (c) Municipality/Ward ………………..…….
(d) Name of Town/Revenue Village (Taluka/Tahsil) ……………………………………..….
(e) Police Station ……….(f) Revenue Demarcation/Hudbast No. …………………………..
5. (a) Whether the building/premises of factory/Estt. is owned or hired.
(b) If hired or there is a change in the name of Unit/ownership, please indicate :-
6. Bank Accounts Details 7. (i) ESI Code No., if covered earlier (ii) Date from which earlier factory/estt. closed down
(8) (a) Income Tax PAN/GIR No.
(b) Exact nature of work/business carried on
(c) Date of commencement of factory/Estt.
9. (a) Whether registered under Factories/Shop & Estt. Other Act (Please specify)
(b) Factory licence No./Trade Licence No./Catering Estt. Licence No./ Licence No. Licensing Authority
shop, Estt. Registration No./
Licence No. under Cinematography
(c) Please give whichever No. Date Issuing Authority
(i) Commercial Tax No. (i)
(ii) State Sales Tax No. (ii)
(iii) Central Sales Tax No.
Benefits of ESIC
Record maintained of ?
1. Attendance Register;
2. Wages Register;
3. Form-6 Register;
4. Accident Register- form-11;
5. Inspection Book
6. File containing all monthly challans & returns submitted.
What is the time limit for payment of contribution?
Contribution shall be paid in respect of an employee in to a bank duly authorized by the Corporation within 21 days of the last day of the calendar month in which the contribution falls due for any wage period
Who is an ‘Exempted Employee’?
An employee whose wage upto Rs.100 Per day is not required to pay employees’ contribution is called an exempted
employee. However, employer’s contribution is payable on these wages.
consequences of non / late payment of employees’ contribution deducted but not paid’?
Any sum deducted by the Principal employer from wages under the ESI Act shall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted. Non-payment or delayed payment of the Employee’s contribution deducted from the wages of the employee amounts to ‘ Breach of trust’ and is punishable under IPC 406
Will the delayed payment attract any interest?
An employer who fails to pay the contribution within the limit prescribed under Regulation 31, shall be liable to pay simple interest at the rate of 12% per annum in respect of each day of default or delay in payment of contribution