Employee State Insurance (ESI) Registration
Employee State Insurance Scheme is a social security scheme to give social protection to employees earning upto Rs. 21,000/- per month. The employer and employee contribute fixed amount to the fund monthly. The State Governments also contribute 1/8th share of the cost of Medical Benefit.
The protection is provided against the events of sickness, maternity, disablement and death due to employment injury and to provide medical care to the insured employees and their families.
ESI is a must for entities employing 10 or more persons. KNA experts will help you get registered under the scheme.
- Drafting documents
- Filing of forms with Authorities
- Issue of ESI Code
- Documented Follow-up
- Business hours -CA support
Every person/entity operating from a shop/office/business establishment employing 10 or more employees
- Purchase of plan
- Upload documents on Vault
- Drafting of documents
- Submission of documents and application with Department
- Receipt of Registration letter
Documents To Be Submitted
- Rent agreement of your registered office
- No objection certificate from the owner of the property of the property
- Business Constitution certificate
- #Partnership deed
- #Incorporation certificate
- #any other registration certificate.
- Supporting documents (if any)
- #Any Additional information demanded by the Department.
- Month wise employment position, salary etc
1. What is ESI Scheme?
ESI is a comprehensive Social Security Scheme designed to provide social protection to the employees against sickness, disablement, and death due to employment injury and other events. The fund is self-financing where employer and employee contributions on a monthly basis and the amount can be utilized towards reimbursing expenses incurred on the health of the employee and his family members.
2. Is it Mandatory for the employer to register under ESI Scheme?
Yes. It is the Statutory responsibility of the employer to register the Factory/Establishment under the ESI Scheme within 15 days from the day of its applicability.
3. How can employees get registered under the Scheme?
- When an employee joins insurable employment, he has to fill in a Declaration Form (form1) and submit a family photo in duplicate to the employer.
- The employer then submits the documents to the ESI Branch Office.
- The employee is then allotted an insurance number, the same number is then used for the purpose of his identification under the scheme. He has further issued a temporary identity card for availing medical benefit for self and family for a period of three months.
- Thereafter, he is provided with a permanent photo identity card. A person once registered need not register again in case of change of employment. The same registration can be transferred from one place to the other.
4. What are the benefits available to eligible employees and their family members under the ESI Scheme?
- The employee gets full medical care during the period of his incapacity for the restoration of his health and working capacity.
- He gets financial assistance to compensate for the loss of his/ her wages during the period of his abstention from work due to sickness, maternity and employment injury.
- Provision of Artificial Limbs, hearing aids, etc as a part of medical treatment when required.
- Medical care benefit is extended to his/her family members also.
- In case of death of an insured employee due to employment injury, the spouse, widowed mother and children are entitled to Dependent’s benefit.
5. How does the ESI scheme help the employer?
There are a couple of benefits that an employer gets on getting Employee State Insurance Registration for his business. *The employer gets his employee protected by ESIC in all respects, so the employee can concentrate on his work.
6. Who must register with Employees State Insurance Corporation?
- Any entity, be it a government office, public sector or private sector entity which has 10 or more employees needs to get registered under the Scheme. The application must be filed within 15 days of reaching the employee count of 10.
- Where the employer wishes to provide the benefits to his/her employees, he may voluntarily apply for registration.
7. Do I need to be present in person during the ESI registration process?
You don't need to be present in person during any stage. The entire procedure will be carried out by our experts. You just need to upload the required documents on the ClearTax Encrypted Document vault and you will receive the registration on service fulfillment.
8. How much time does the Employee State Insurance Registration process take?
Usually, the entire process takes a week’s time. Depending on the workload with government department the process might take longer time. Make sure that you keep the required documents ready so that we can complete the entire process in the least time.
9. What is the contribution rate to the ESI fund?
- An eligible employee needs to contribute in a total of 1.75% of their salary (basic+allowances).
- Registered Employers need to deposit 4.75% of salary paid(basic+allowances) to ESI corpus every month.