ESI in India is a certification that practically all enterprises must get to receive medical, maternal, and disability etc benefits. However, not all employers must obtain ESIC Registration as it always depends upon the number of employees. Here we discuss ESI Registration, its benefits, and the penalty you must pay if you do not get ESIC Registration.
The Employee State Insurance Act of 1948 gives advantages to employees in case of affliction, maternity, or work environment injury. Following that, for the business to give those advantages to its representatives, an arrangement was made to concede confirmation to organisations that give these advantages to their workers.
Who Needs To Obtain ESI Registration In India?
The following entities must obtain ESIC Registration under Section 1 (5) of the ESI Act, 1948:
- Cinemas, Shops, Restaurants, or Hotels that only engage in sales.
- All Road Motor Vehicle Establishments
- Every newspaper establishment (not protected by the Factory Act)
- Private Educational Establishments
What Are The Benefits Of ESI Registration In India
In India, ESIC (Employee’s State Insurance Corporation) registration gives numerous advantages to both companies and employees. ESIC is an Indian social security and health insurance scheme that provides medical and cash benefits to employees and their families in the event of sickness, maternity, or workplace injury. Here are some of the primary advantages of ESIC registration:
- Benefits in the event of illness at a rate of 70% (in the form of salary), in the event of any certified sickness, which may endure for a maximum of 91 days in any year.
- Medical coverage for employees and their dependents
- Paid maternity leaves are provided to pregnant women.
- If an employee dies at work, his direct dependents receive 90% of his income every month following his death.
- In the event of the employee’s impairment, the preceding item applies.
- Funeral expenditures
- Medical expenses for elderly care
Documents Required For ESI Registration In India
The Employees’ State Insurance (ESI) scheme provides social security and health insurance to Indian employees. For ESI Registration In India, you must typically submit specific documents and information. While the criteria may vary significantly depending on your organisation’s specific specifics, here is a broad list of documents that are commonly necessary for ESI registration:
- Certificate of registration received under one of the following acts:
- The Factories Act, the Shops and Establishment Act, the Certificate of Registration for a Company, and the Partnership deed for a Partnership firm (MOA) The Company’s Memorandum of Association and (AOA) Articles of Association
- A list of all employees employed by the company.
- The Business Entity’s PAN Card, as well as the PAN Cards of all individuals working in the business
- Employee compensation information
- A cancelled cheque from the Company’s bank account
- A list of the Company’s Directors, as well as a list of the Company’s Shareholders
- A register providing employee attendance information.
- Following the collection of all of the aforementioned documents, the following procedure must be followed to register under the ESI Scheme.
- Form No. 1 (Employers Registration Form) must be downloaded and completed.
- After downloading and filling out the PDF version of the form, it must be submitted on the ESI website along with the previously stated papers.
Procedure For ESI Registration In India
Employees’ State Insurance (ESI) is a self-funded social security and health insurance program for Indian workers. It provides medical and cash benefits to employees and their families throughout India through its extensive network of dispensaries and hospitals. The general method for ESI registration in India is as follows:
Step 1: Login to ESIC Portal
To register as an employer under the ESI Act, the employer should go to esic.in and pick the ‘Click here to Login’ option on the front page. They will fill out the necessary information and sign up.
Step 2: Confirmation mail:
The employer will receive a confirmation email containing the login and password details for both the employee and the employer to register for the ESIC scheme.
Step 3: Employer Registration Form-1
Enter the username and password provided to log in to the ESI Registration In India. To register a new employer, select the corresponding option. The employer must choose the ‘Type of Unit’ from the list before pressing the ‘Submit’ button. The employer must next complete the “Employer Registration – Form 1” and press the “Submit” button.
Step 4: Payment for Registration
After presenting the Form 1, the business should finish up the ‘Installment of Advance Commitment’ page with the necessary data and pick an instalment technique. For a time of a half year, the business is expected to make the development commitment.
Step 5: Registration Letter for ESI Registration In India
The ESIC department sends the employer a Registration Letter (C-11) with a 17-digit Registration Number when the six-month advance payment has been successfully paid. This Registration Letter (C-11) is proof of the employer’s registration that is required by law.
Additionally, the ESIC must be notified immediately of any company or personnel changes.
ESI Return Filing
Employee State Insurance is what ESI stands for. For Indian labourers, it is a self-supporting government-managed retirement and health care coverage program. The Employees’ State Insurance Corporation (ESIC) directs the asset under the rules framed in the ESI Act of 1948. To ensure compliance with the rules, employers must submit ESI returns. Here is a common rule for filing ESI returns:
- Attendance of workers
- Register Register of Wages Form 6
- Register Record any incidents that have happened on the business’s property
- the challans and monthly returns
Penalties for Contribution Non-Payment or Delay
The Company may assess and recover damages by the Regulations at the following rates, which may not exceed the amount of the Contribution payable in default or the event of Contribution Delay.
| Period of delay | Rate of damages in % p.a |
| Less than 2 months | 5% |
| 2 to 4 months | 10% |
| 4 to 6 months | 15% |
| 6 months and above | 25% |
As indicated by Section 85(a), the business is dependent upon an indictment for the primary offence, and upon each ensuing offence, he will be likely to expand punishments.
Conclusion
The ESI Act of 1948 draws the guidelines and systems for organisations to observe while offering various advantages to employees in case of disease or the passing of a worker in the work environment. Additionally, organisations with ESI Registration in India are required to offer paid leaves as maternity benefits to their employees who are expecting. Additionally, after enrolling in the ESI Scheme, every employee of such a company is entitled to a number of benefits outlined in the ESI Act.
