Streamline ESI Registration
The Employees’ State Insurance (ESI) scheme is a social security initiative designed to support employees during times of financial distress caused by unexpected circumstances.
The program provides assistance for various situations, including illness, maternity leave, temporary or permanent disability, unemployment, and loss of life due to workplace accidents or occupational diseases. Additionally, ESI offers medical benefits for employees and their families. Established under the ESI Act of 1948, this was the first major law in India focused on providing social security for workers. The scheme is managed by the Employees’ State Insurance Corporation (ESIC) and operates under the Ministry of Labour and Employment, Government of India. Over the years, it has become a cornerstone of statutory payroll compliance in the country.
Who is eligible for ESI?
The Employees’ State Insurance (ESI) Act is applicable to any establishment employing a minimum of 10 workers. In 2001, the scope of the Act was broadened by the government to include additional types of establishments, such as:
- Shops
- Hotels and restaurants
- Cinemas (including preview theatres)
- Road motor transport undertakings
- Educational and medical institutions
- Insurance businesses
- Non-banking financial companies
- Warehousing establishments
- Port trust and airport authorities
The minimum number of employees an establishment must have for registration under the Act varies in different states:
- NOTE-As per the provisions of the Act, workers in registered organizations with a monthly income below ₹21,000 are eligible for ESI benefits. Additionally, individuals with disabilities earning up to ₹25,000 per month are also entitled to avail of these benefits.
Documents Required For ESI Registration
- Certificate of registration
- Certificate of incorporation
- PAN card of the organization and its employees
- Memorandum of association and articles of association of the company
- A cancelled cheque
- List of all employees employed by the company and their salary details
- List of all shareholders and directors of the company
- Proof of address of the establishment (one from the list)Electricity bill, telephone bill, or gas connection bill
Professional Fees
ESI Registration
- Exclusive of Government Fees
- Expert Guidance
- End-to-End Support
- Post-Registration Assistance
- No hidden charges
How does the ESI scheme work?
| Contribution Towards the ESI Fund | ||
|---|---|---|
|
By the Employer |
3.25% of the employee’s gross pay |
|
|
By the Employee |
0.75% of their gross pay |
|
Comprehensive Benefits Under the ESI scheme
The Employees' State Insurance (ESI) scheme provides a wide range of benefits to employees and their dependents, ensuring financial and medical support during times of need. Below is an overview of these benefits and their conditions:
Healthcare Benefits
Full Medical Coverage: Employees and their families receive free medical care from the first day of employment. Cost Sharing: State governments contribute one-eighth of the expenses, while the ESI fund covers the remainder.
Unemployment Relief
Rajiv Gandhi Shramik Kalyan Yojana: Insured employees who lose their jobs due to closure, retrenchment, or permanent disability are eligible for: 50% of wages for the first 12 months. 40% of wages for the subsequent 12 months. Eligibility requires three years of service with full contributions before job loss.
Disability Assistance
Temporary Disablement: 90% of daily wages is paid until recovery from an occupational injury. Permanent Disablement: Compensation is based on the degree of earning capacity lost.
Financial Security for Dependents
Dependents’ Benefit: Families of employees who pass away due to workplace injuries or diseases receive 90% of the deceased’s wages, distributed among dependents as per prescribed ratios.
Maternity and Childbirth Support
Maternity Benefit: Female employees contributing for at least 70 days are eligible for 100% of their wages—26 weeks for childbirth, 6 weeks for miscarriage, and 12 weeks for adoption or surrogacy. Confinement Expenses: A ₹2,500 cash benefit is provided for childbirth-related expenses.
Additional Financial Assistance
Funeral Expenses: A lump sum of ₹10,000 is paid to the eldest surviving family member for funeral costs. Rehabilitation Allowance: Disabled employees receive full wages during hospitalization for the repair or replacement of artificial limbs.
Sickness Benefit
Employees can claim 70% of their average daily wages for up to 91 days if unable to work due to illness, provided they have contributed for at least 78 days in the applicable period.
Extended Sickness Benefit
For long-term illnesses like tuberculosis or AIDS, employees receive 80% of their wages for 309 days if they have completed two years of service and contributed for 156 days.
Enhanced Sickness Benefit
Employees undergoing sterilization procedures are eligible for 100% of their wages—7 days for vasectomy and 14 days for tubectomy.
Employer Responsibilities Under the ESI Act
Employers must fulfill certain obligations under the Employees' State Insurance (ESI) Act to ensure compliance beyond monetary contributions.
Timely Registration
- Initial Registration: Submit Form 01 within 15 days from the date of applicability for ESI Act registration.
- Employee Coverage: File the Declaration Form to enroll all employees on the payroll under ESI.
Contribution Management
- Collection and Payment: Collect both employer and employee contributions at the prescribed rates and deposit the total amount by the 15th of each month.
- Authorized Deposits: Ensure payments are made to a bank authorized by the ESI statutory body.
Return Filing
- Half-Yearly Returns: File the Return of Contributions (RC) form as follows:
- For the April–September contribution period: File by 12th November.
- For the October–March contribution period: File by 12th May.
Record Maintenance
- Documentation: Maintain accurate records and registers, and make them available for inspection when required.
- Reporting Changes: Notify ESIC authorities promptly about organizational changes, such as shifts in employee count or business address.
By adhering to these responsibilities, employers can ensure smooth compliance with the ESI Act and uninterrupted benefits for their employees.
How Covering Taxes Help
Fill The Form & Make The Payment
Process starts for registration and filing of Form 1 and submission
Upload the necessary documents as mentioned
Required Payment of Advance Contribution Till 6 months
Compilation of Documents
Congratulations ! 17-digit registration number allotted by the statutory body will be received
