What is ESI Registration ?
ESI stands for Employee State Insurance managed by the Employee State Insurance Corporation which is an autonomous body created by the law under the Ministry of Labour and Employment, Government of India.
This scheme is started for Indian workers. The workers are provided with a huge variety of medical, monetary and other benefits from the employer. Any Company having more than 10 employees (in some states it is 20 employees) who have a maximum salary of Rs. 15000/- has to mandatorily register itself with the ESIC.
What are the benefits of ESIC registration?
The benefits of registering under this scheme are varied. Some of them are:
1. Sickness benefits at the rate of 70% (in the form of salary), in case of any certified illness certified and which lasts for a maximum of 91 days in any year
2. Medical Benefits to an employee and his family members
3. Maternity Benefit to the women who are pregnant (paid leaves)
4. If the death of the employee happens while on work – 90% of the salary is given to his dependents every month after the death of the employee
5. Same as above in case of disability of the employee
6. Funeral expenses
7. Old age care medical expenses
Entities covered under ESIC
As per the government notification dated Sec 1(5) of the ESI Act the following entities are covered:
2. Restaurants or Hotels only engaged in sales.
4. Road Motor Transport Establishments;
5. Newspaper establishments (which is not covered under the factory act)
6. Private Educational Institutions
How many returns are filed every year after the registration is finalised?
|After the registration ESI Returns have to be filed twice a year. The following documents are required for the filing of the returns:
v Register of Attendance of the Employees
v Form 6 – Register
v Register of wages
v Register of any accidents which have happened on the premises of the business
v Monthly returns and challans
What is the process after the form verification?
|v Step 1: After verification of the form, the government will issue a 17 digit unique number
v Step 2: The employee who is registered under this scheme will provide the employer with the filled form and photographs of his own family members as a part of the process of registration and will get an ESI card after registration
v Step 3: Any change in the Company or its employees will be intimated to the ESIC