What is ESI Scheme?
The Employees' State Insurance (ESI) Scheme is one of the most
popular schemes amid employees engaged in various economic sectors in
entire India. This ESI scheme is administered and
regulated by an autonomous and self-financing social security and labor
welfare organization named ESIC, strictly as per the rules and
regulations given in the Indian ESI Act of 1948.
What is ESI Registration?
Proper registration under the ESI scheme of ESIC, is referred to
as the ESI Registration. ESIC is acronym for Employees' State Insurance
Corporation, which functions under the Ministry of Labor and Employment,
Government of India. Registration under this ESI scheme ensures
availability of a wide-range of medical, monetary, and other benefits to
the employees of any employing entity having 10 or more employees. Such
facilities are indeed very elegant for improving and boosting the
health, morale, performance, and retention and progress of employees.
Thus, registration under ESI scheme is regarded as a
statutory responsibility of every concerned employer entity, engaged in
any economic field.
When is ESI Required?
ESI Registration is required when a
company/firm/organization employs 10 (in few Indian States and UTs, this
number is 20) or more persons, with individual wage/salary falling
under the threshold limit of INR 21,000 per month. After registration,
ESIC gives recognition to the employing entity and its employees through
allotting a 17-digit unique identification code.
To make available the benefits provided under this ESI scheme,
the registered employing entity needs to contribute 4.75% of the total
monthly salaries/wages payable to its employees; while the eligible
individual employees require to contribute only 1.75% of their
individual monthly salary to the ESIC funds, every month of the year.
Those employees who earn up to INR 100/- per day, are exempted from
paying their share of contribution to the ESI scheme.
Benefits of ESI Registration
The benefits of ESI registration are offered by
ESIC with efficient support of its large network of branch offices,
dispensaries, and hospitals located all across India. Broadly, the major
welcome benefits to the contributing employees cover the following:
- Sickness benefits in form of salary at the rate of 70%, in case of any certified sickness lasting for a maximum of 91 days in any year.
- An array of medical benefits and facilities to the employee and his/her family.
- Maternity benefit to pregnant woman employees in form of paid leaves for three months.
- In case of death of an employee caused by any occupational hazard, ESIC pays 90% of his/her salary to his/her dependents every month.
- Disability to work will be paid at the rate of 90% of the monthly salary of the concerned employee.
- Other benefits offered to employees by ESIC include funeral expenses compensation, physical rehabilitation, vocational rehabilitation, old age medical care, etc.
ESI Registration Procedure and Requirements
The ESI registration procedure covers mainly the following two processes or tasks:
- The employer is required to submit the completed Employer's Registration Form (Form-01) to the ESIC, along with the documents mentioned below separately.
- And, each employee (eligible to this scheme) is needed to fill in the Form-I, and submit a family photograph to the employer.
In general, the documents and enclosures to be submitted to the
concerned ESI Office by an employer entity, for getting registration
under the ESI scheme, are the following:
- Certified copies of various documents related with company incorporation and business/profession of the company.
- Address Proof, PAN Card, Company Bank Account, and all Tax-related certificates and documents applicable.
- Documents submitted by the employees to the employer.
- Registers containing information about the employment, salaries, attendance, etc. of concerned employees.
- Copy of the updated Bank Statement of company's account.
- And, other documents which may be demanded by the ESI Office.
After filling the all details, the employee has to visit with family into ESIC Office and enroll him/herself. After Documents and biometric details fetched by the ESIC Officer you will get the ESIC Card (Pehchaan).
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