Online ESI Registration & ESI Returns Filing Procedure in India
Registering with ESI is mandatory when 10 or more of your employees earn less than ₹21,000/month.
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How our online ESI registration process works:
Online ESIC Registration Overview
Employee State Insurance or ESI is a scheme commenced by the Government of India to offer medical, monetary, and other advantages to workers. ESI is managed by an autonomous authority – Employee State Insurance Corporation – which lies under the jurisdiction of the Ministry of Labour and Employment. By law, any company that has more than 10 employees mandatorily needs to have ESI. In some states, the number of employees is 20. For employees earning more than ₹21,000 per month, including basic salaries and dearness allowance, the insurance is deducted from their pay. Also, taxpayers with a turnover of less than ₹1.5 crore can opt for the composition scheme to get rid of tedious GST formalities and pay GST at a fixed rate of turnover.
Benefits of ESIC Registration
ESIC New Registration ensures that employees enjoy the following advantages:
From the very first day of employment, registered ESI members and their families are entitled to enjoy the benefits of complete medical care and insurance.
Pregnant women are entitled to maternity benefits that are payable upto twenty-six weeks. This period can be extended by 30 days on medical advice. To qualify for maternity benefits, employers are required to contribute their wages for 70 days in the preceding two contributions periods.
Disabled employees can get 90% of their monthly salaries as disablement benefits.
Absence from work during illness can be taken for a maximum of 91 days per year along with 70% of the monthly wages.
In the unfortunate event of the demise of an employee during the employment, the dependents of the deceased will receive 90% of his/her monthly salary.
The family of the deceased employee is entitled to an additional amount of Rs.10,000 towards funeral expenses.
In the case of confinement of an insured woman or wife of an employee occurring in a place with no medical facilities under the ESI scheme, confinement expenses can be availed.
In addition, some of the need-based benefits:
Permanently physically challenged, insured employees are entitled to undergo vocational rehabilitation training at VRS.
Available to employees in the case of physical disablement due to an employment injury or occupational hazards.
Old Age Medical Care
An annual payment of ₹120 ensures medical care benefits for retiring ESI employees or for those who are opting for VRS/ERS.
Extended Sickness Benefits
ESI members suffering from chronic diseases can avail the extended sickness benefit for upto 2 years, once the standard sick leave of 91 days has expired.
Enhanced Sickness Benefit
Registered ESI members willing to undergo the sterilisation procedures are eligible for enhanced sickness benefits of 100% of their daily average wages. This benefit also allows a recuperating period of 7 days for vasectomy and 14 days for tubectomy from the date of surgery or admission in the hospital.
ESIC (Employees' State Insurance Corporation) Registration Process
When you choose CADesk India for ESIC New Registration, we complete it in three simple steps that take the minimum possible time.
The ESIC Online Registration form is filled by you completely and the necessary documents are submitted
Every detail you provide is cross-checked to ensure there are no errors or omissions made. This may take a maximum of 12 days
The ESI application along with other legal paperwork is submitted by us which requires 2 working days.
Your part of the ESIC Online Registration is completed at this point. The government reviews the application and processes your registration. Once granted, Vakilsearch sends you:
- The 17-digit identification code number
- Employee insurance number
- Temporary identity card
Eligibility/Entities Covered Under ESIC Registration in India
As per the ESI Act of 1948, all establishments are eligible for esi registration online provided they fulfill the criteria of having the required number of employees in that state. The entities covered are:
- Movie theatres
- Medical institutions
- Hotels or restaurants
- Newspaper establishments
- Private educational institutions
- Roadside motor transport establishments
Note: For hotels and restaurants, it is mandatory to only offer the service and not have any manufacturing functions. In some states, medical and educational institutes are not included. For newspaper establishments, there is no coverage under the Factory Act.
Eligibility for ESIC Registration in India
The general rule to be eligible for ESI (Employees' State Insurance) registration is to have 10 or more workers. But in some regions, ESI is applicable only if there are more than 20 employees.
Other eligibility criteria that need to be fulfilled are:
- Any employee whose gross salary is up to ₹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 ₹21,000 compulsorily need to have ESI.
Documents Required for online ESIC Registration
To register for ESI the employer has to submit the following documents along with the application:
- The registration certificate or license issued by - Shops and Establishments Acts/Factories Act
- Address proof
- Rent receipt of the occupied premises, mentioning its capacity
- Copy of PAN card
- Copy of bank statement
- Photocopy of the last building tax/property tax receipt
- Memorandum and Articles of Association or Partnership Deed or Trust Deed - depending on the applying entity
- Photocopy of registration
- Certificate of commencement of production
- Registration No. of CST/ST/GST
Note: For ESI filings, a monthly pay sheet is required for computing the contribution amount for each employee.
Why CADesk India?
If the processing time taken by authorities is not factored, CADesk India can get your ESI (Employees' State Insurance) registration in as little as 12 days. When you consult with us on ESI online registration you get:
- A first free consultation
- Complete application preparation that includes gathering the necessary documents to be submitted with the ESI form
- A thorough processing of the application at every stage starting from submission and ending with all follow-ups
- Final registration steps are taken by our expert who is appointed to respond to any question that may arise during the processing
- We ensure our affiliates take care A-Z of the ESIC New Registration process without any hassles
- We take all the effort while you can stay focused on your business.
Payroll earnings are amounts paid to employees in the form of various salary components such as basic pay, house rent allowance, sales incentives, etc.
Principal employers under this Act have to pay a sum of money to the Employees State Insurance Act Corporation according to relevant provisions.
Wages include remuneration payable to an employee in cash under the terms of an express or implied contract of employment.
FAQs on A Comprehensive Guide to ESI Registration
To recognize each employee, the ESI scheme allots a unique identification number to every worker. This number is called the insurance number and is used for all operational purposes.
The law of India states that it is mandatory for every employee to register within ESI. It is considered a statutory responsibility. A factory or establishment has to apply for the scheme within 15 days from the date it becomes eligible.
Once a factory or establishment is recognized within the ESIC Act, it has to file ESI returns two times per year. For each return filed, the underlying documents have to be submitted:
- A register of wages
- A register of the attendance of employees
- A register of Form 6
- Challans and returns of every month
- A register of any accidents that may have occurred on the premises of the business.
ESI forms can be filled online but they require exact information with no buffer for mistakes. Additionally, the application is long and exhaustive and requires meticulous attention to be filled accurately. At CADesk India we ensure that no error is made and that the ESI registration is completed as fast as possible and with no glitches. We make the procedure seamless and smooth for you.
The ESI scheme is a self-financing scheme and is primarily built out of funds from employers and employees collectable monthly at a fixed rate of wages paid.
Basic wages comes under ESIC is the total of basic salary plus dearness allowances that excludes the overtime done by the employee.