Employee State Insurance

What is Employee State Insurance Corporation

Employee State Insurance Corporation or ESIC is a self-financing social security and health insurance scheme which provides medical benefit, sickness benefit, maternity benefit, disablement benefit and various other benefits such as funeral expenses or free supply of physical aids and other purposes for the employees and their family.

Units or Establishments having 10 or more employees, and drawing the wages of up to Rs.15,000 a month are required to be registered for ESIC under the ESI Act 1948. The contributions raised from covered employees and their employers at the fixed percentage of wages, fund the benefits provided by the scheme. At present, covered employees contribute 1.75% of the wages to the ESIC and covered employers contribute 4.75% of the wages, payable to their employees. The state government also contributes 1/8th share cost of the medical benefits.

All Establishments and Factories employing more than 10 employees are mandatorily required to apply for ESI registration within 15 days of the ESI Act, 1948 becoming applicable to them.

Choose ESI Registration because :

Provides complete medical care to employees
It includes employee’s dependants
It is mandatory for units with more than 10 employees

Documents Required For ESI Registration

To be Submitted by Employer :

Registration Certificate or Licence issued under Shops and Establishment Acts or Factories Act.
Address Proof: Latest Rent receipt of the premises you are occupying indicating the capacity in which the premises are occupied, if applicable.
Latest building Tax/Property Tax receipt (Photocopy).
Memorandum and Articles of Association/Partnership Deed/Trust Deed depending on the entity that is applying for registration.
Photocopy of certificate of Commencement of production and/or Registration No. of CST/ST (or GST once it becomes applicable).
Copy of PAN Card
Evidence in support of the date of commencement of production/business/first sale (e.g. Copy of First Invoice).
Month wise employment position, salary etc.
Copy of bank statement

To be Submitted by Employees :

Family Photo in Duplicate

Advantages of ESI Registration

It provides complete medical benefits
It includes dependants
It can be used at different ESI dispensaries and hospitals
Any payments made will be reimbursed
It takes the needs of the disabled into account
Access to Medical care in ESI Dispensaries/Hospitals

Applicability of ESIC Registration

Shops

Hotels or restaurants not having any manufacturing activity, but only providing service.

Cinemas

Roadside Motor Transport Establishments

News paper establishments

Private Educational Institutions and Medical Institutions

In some states the minimum employees required for coverage is for 20 or more. A few State Governments have not extended scheme to include Medical & Educational Institutions.

Eligibility for ESI Registration in India

The general rule to be eligible for ESI registration is to have 10 or more workers. But in some regions, ESI is applicable only if there are more than 20 employees.
Any employee whose gross salary is up to Rs. 21,000 per month can avail this with the help of the employer. Establishment Registered with EPFO.
The contribution to ESI is 6.5% of the gross salary. It is divided as:

4.75% by the employer

1.75% by the employee

For industrial units, where there are chances of occurrence of injury or health issues at the business premise, all employees with salary less than Rs.21,000 compulsorily need to have ESI. or ESI filings, monthly pay sheet is required for computing contribution amount for each employee.
DUE DATES FOR ESI:

Payment: 15th of every month

Returns: May 11th and November 11th

DUE DATES FOR PF:

Payment: 15th of every month

Returns: May 25th of every month