ESI Registration

Overview of ESI Registration

ESI, or Employee State Insurance, is a scheme organized by the Government of India that offers medical, monetary, and other advantages to workers. Employee State Insurance Corporation is an autonomous organization that manages ESI. The ESIC lies under the jurisdiction of the Ministry of Labour and Employment.

Companies with more than ten employees are bound to be registered under ESI as per the laws in India. There’s an exception in some states, where the number is 20. If employees earn more than ₹21,000 per month, then the insurance is deducted from their total payment.

Benefits of ESI Registration

ESI Registration offers employees these advantages:

Medical Aid

Medical Insurance is provided to the employees and their family members from the first day of their ESI Registration.

Maternity Aid

Women who are pregnant are entitled to maternity benefits for up to 26 weeks. It is possible to extend this period by 30 days on medical advice. Employers must contribute 70 days of wages in two previous contribution periods in order to qualify for maternity benefits.

Disablement Benefits

90% of the monthly salaries of Disable Employees are given as disablement benefits.

Sickness Benefits

Along with 70% of the pay scale, employees are also entitled to 91 days leave period every year.

Dependent Benefits

90% of the monthly salary is given in the unfortunate event of the demise of an employee during their employment to the people dependent on them.

Funeral Expenses

A sum of 10,000 is given to the deceased’s family for the funeral.

Confinement Expenses

The ESI scheme covers confinement expenses for an insured woman or wife of an employee who is confined in a place without medical facilities.

Vocational Rehabilitation

Vocational rehabilitation training at VRS is offered to permanently physically challenged employees.

Physical Rehabilitation

In case of a physical disability occurs due to an accident or injury on the business premise, physical rehabilitation is applicable.

Old Age Medical Care

An annual payment of ₹120 is given to retiring ESI employees or them availing VRS/ERS for medical care benefits.

Extended Sickness Benefits

Upon the expiry of the standard sick leave of 91 days, ESI members suffering from any chronic disease can avail of the extended sickness benefit for up to 2 years.

Enhanced Sickness Benefit

The enhanced sickness benefit of 100% of the average daily wage is available to ESI members who undergo sterilization procedures. Also included in this benefit is a 7-day recuperation period for vasectomy and a 14-day recovery period for tubectomy.

ESIC (Employees’ State Insurance Corporation) Registration Process

These are the steps to register under Eazy Startups’ guidance:

Form Filling: The ESI registration form must be duly filled along with the necessary documents for submission

Verification: The details provided in the form and the documents are duly checked to ensure correctness and no omission

Submission: Once everything is verified, the form and the documents are submitted

If the government reviews and passes the applications, then Eazy Startups delivers you:

• The 17-digit identification code number
• Employee insurance number
• Temporary identity card

Eligibility Criteria Under ESIC Registration in India

According to the ESI Act of 1948, all businesses are eligible for ESI registration if they fill the minimum employee number criteria of the particular state. The entities covered are:

• Shops
• Cinemas
• Movie theatres
• Medical institutions
• Hotels or restaurants
• Newspaper establishments
• Private educational institutions
• Roadside motor transport establishments

Eligibility for ESI Registration in India

As mentioned above, the general rule to be eligible for ESI (Employees’ State Insurance) registration is to have ten or more employees working for you. But in some regions, ESI is applicable if the number of employees exceeds 20.

Other eligibility criteria for availing ESI:

• Employees with a gross salary exceeding 21000 can avail of the benefits of ESI with the assistance of their employer.
• EPFO registered establishments

The contribution to ESI is 6.5% of the gross salary, which is divided as:

• 75% by the employer
• In workplaces where the employees are at high risk of injury or health issues, like at industrial units, all employees with a salary less than ₹21,000 compulsorily need to have ESI.

Documents Required for ESI Registration

The employer needs to submit the following documents with the application.

• Shops and Establishments Acts/Factories Act licence or registration certificate
• Address proof
• Copy of PAN card
• Copy of bank statement
• Business premise rent receipt
• Photocopy of the last building tax or property tax receipt
• MoA and AoA or Partnership Deed or Trust Deed, whichever is applicable as per the business structure
• Certificate of commencement of production
• Registration No. of CST/ST/GST

Frequently Asked Questions