What is ESI (Employees' State Insurance)?
The Employees' State Insurance (ESI) is a magnificent and immensely popular scheme regulated under the Ministry of Labor and Employment, Govt. of India, for providing certain legitimate and lavish monetary and medical benefits to the employees engaged in the organized employment sector of India. ESIC Registration is a statutory responsibility of the employers in all economic sectors.
This ESI Scheme is administered and controlled by a self-financing social security organization the Employees' State Insurance Corporation (ESIC), in accordance with the rules and regulations given in the Indian Employees' State Insurance Act of 1948 (ESI Act of 1948). This ESIC functions under the Ministry of Labor and Employment, the Government of India. Except some north-eastern States and Union Territories, this ESI Scheme is prevalent in regions all across India. As on March 31, 2013, there were over 6.5 Lacs of employers registered under ESIC which were facilitating the benefits of this scheme to around 1.75 Crore of employees. Proper registration under the ESIC gives specific identity to the employer and its employees, and ensures availability of the benefits offered by this ESI scheme. Registration with ESIC offers many lavish benefits including medical benefits to the employees to improve their morale, better performance, and chances of their retention.
The foregoing was brief description about "what is esi?"; now, the sections below provide all necessary information regarding employees' state insurance (ESI) registration in entire India, and various benefits provided to the employees under this ESI scheme.
ESI Registration Highlights
This section contains exclusive information about the highlights and key factors of employees' state insurance (ESI) scheme, to enlighten and help employers and employees engaged in various economic fields in places all across India. These esi registration highlights essentially cover the various benefits available to the employees and their respective family in certain cases.
- Applicability: --- Companies, firms, and other establishments which employ 10 (in few States and UTs, this number is 20) or more persons are required to get registration under the ESIC, to facilitate the benefits of this ESI scheme to their respective employees who get monthly wages/salaries within INR 15,000 at present (effective from May 01, 2010). Any such entity needs to get ESI registration at the earliest. After registration, the entity will be allotted a 17-digit unique identification code. This registration will enable its employees to obtain monetary and medical benefits in the cases of sicknesses, maternity, employment injuries, etc. Detailed information about these benefits is provided under a separate section on this webpage.
- ESI Contributions: --- Any registered employer has to contribute 4.75% of the total monthly salaries payable to its employees (who earn less than INR 15,000 per month) to the ESIC; while the individual employees working under this employer are required to contribute only 1.75% of their individual monthly salary towards the ESIC. Registered employers under the ESIC are liable to pay the total ESIC contribution (employer portion and employee portion), in respect of every such employee. Employees earning up to INR 100/- per day, are exempted from paying their share of contribution towards ESI scheme.
- ESI Benefits: --- Employees' State Insurance Corporation (ESIC), an autonomous social security and labor welfare organization functioning under the Ministry of Labor and Employment, Government of India, offers a wide-range of medical and other benefits to its registered employees of all over India, with help of its large network of branch offices, dispensaries, and hospitals located throughout the country. These benefits are stipulated separately in a separate section on this webpage.
- ESI Payment Deadline: --- ESI contributions rendered by the employer and its employees are to be deposited by the employer into a bank authorized by ESIC within 21 days of the last day of the calendar month in which the contributions fall due.
- Compliance: --- Employers offering ESI benefits to their respective employees, compulsorily need to file the annual return. They are also required to show the changes made, if any, in the preceding financial year. Again, the return of ESI contributions enclosing copy of all contributions paid, is to be submitted once in every six months.
Benefits Offered to Employees under ESI Scheme
Various legitimate and welcome benefits offered to employees under the ESI scheme in India are the following:
- Sickness Benefits: --- Employees registered under ESI scheme are paid their respective wage or salary at the rate of 70%, owing to any certified sickness for a maximum of 91 days in any year; provided they have strictly followed the rules given in the ESI Act of 1948.
- Medical Benefits: --- ESIC offers many welcome medical facilities and benefits to the employees and their families, through support of its wide network of hospitals and dispensaries situated all across the country. Medical care and facilities are also available to the spouse of any retired or permanently disable employee on payment of a nominal annual premium of INR 120/-.
- Maternity Benefits: --- Married women are given maternity benefit for pregnancy in form of the fully paid leaves for three months, provided they have contributed to ESIC at least for 70 days in the preceding financial year.
- Dependents' Benefits: --- In case of death of an employee caused by any occupational hazards or employment injury, the ESIC pays 90% of his/her monthly salary to his/her dependents every month.
- Disablement Benefits: --- Disablement benefit is offered to the ESIC covered employee in form of the payment of his/her 90% monthly salary in every month till existence of the specified disability to work.
- Other Benefits: --- In addition to these benefits, employees registered under ESIC are also eligible to receive many other advantages such as funeral expenses compensation, physical rehabilitation, vocational rehabilitation, old age medical care, etc.
ESI Registration Process
This section informs in brief all about how to register under esi, in order to provide the above-mentioned benefits to one's employees. In general, the esi registration process in india covers the following tasks:
- Completing and filing the Employer's Registration Form (Form-01) with the ESIC, along with submitting the required documents.
- The employee is required to fill in Form-I and submit a family photo in duplicate to the employer.
- The ESI Office will then examine and verify the applications and documents submitted, and thereafter provide to the employer a 17-digit unique identification code number, and an identity card together with an insurance number to every employee.
- Certified copy of the certificate of incorporation of the company
- Certified copies of the AOA and MOA of the employing company/firm
- Certified copy of the certificate of commencement of business/production
- Certified copies of the certificate or license issued under the Shops and Establishment Act of the relevant State, if applicable.
- PAN Card, Address Proof, Bank Account, and all Tax related certificates and documents applicable.
- Documents/ Registers showing employment, attendance, salary, etc. of all eligible employees.
- List of Partners or Directors
- An updated copy of the bank statement of the company's account
- Applications and Documents submitted to the employer by its employees.
- And, many other documents which may be demanded by the ESI Office.