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.
ESIC Forms for Employers -
Form 01 - Employer's Registration Form
Form- 01A - Annual information of factory/estt submission form
Form 3 - Return of Declaration forms
Form 5 - Return of contributions
Form 5a - Statement of advance payment of contributions
Form 6 - Register of employees
Form 10 - Abstention verification
Form 11 - Accident Register
Certificate of Re-employment / continuing employment
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).