Employee State Insurance (ESI): An Overview

The Employee State Insurance (ESI) scheme is a social security and health insurance initiative introduced by the Government of India under the Employees’ State Insurance Act, 1948. Managed by the Employee State Insurance Corporation (ESIC), it aims to provide comprehensive benefits to employees and their families in cases of sickness, maternity, disability, or death due to employment-related injuries.

Benefits of ESI

  1. Medical Benefits:
    Comprehensive medical care for employees and their dependents at ESIC hospitals and dispensaries.

  2. Sickness Benefits:
    Compensation for loss of wages during certified illness periods, up to 91 days.

  3. Maternity Benefits:
    Paid leave for pregnancy, adoption, or miscarriage.

  4. Disability Benefits:
    Financial compensation for temporary or permanent disabilities caused by workplace injuries.

  5. Dependent Benefits:
    Monthly pension to the family of a deceased employee due to work-related injuries.

  6. Unemployment Allowance:
    Support under the Rajiv Gandhi Shramik Kalyan Yojana for employees who lose their jobs involuntarily.

Who Needs to Register for ESI?

  1. Employers:
    Any organization with 10 or more employees (20 or more in some states) earning a monthly wage of ₹21,000 or less must register under ESI.

  2. Employees:
    Employees earning ₹21,000 or less (₹25,000 for persons with disabilities) are mandatorily covered under the scheme.

Documents Required for ESI Registration

For Employers:

  • Registration certificate under the Companies Act/Factories Act/Partnership Act.
  • PAN and address proof of the business.
  • Bank details of the company.
  • Details of employees, including Aadhaar and salary records.
  • List of directors/partners/proprietors.
  • GST Registration Certificate (if applicable).

For Employees:

  • Recent passport-sized photographs.
  • Identity and address proof (Aadhaar/PAN).
  • Bank account details.
  • Family details for dependent coverage.

Steps for ESI Registration

For Employers:

  1. Visit the ESIC Portal:
    Log in to the official ESIC website: www.esic.gov.in.

  2. Sign Up as an Employer:
    Register using basic business details and generate a username/password.

  3. Fill Employer Registration Form:
    Provide detailed information about the business, employees, and wages.

  4. Submit Documents:
    Upload scanned copies of required documents.

  5. Receive Registration Number:
    On successful submission, a 17-digit Employer Registration Number (ERN) is generated.

Contribution Under ESI

Contribution TypePercentage of Wages
Employer’s Contribution3.25%
Employee’s Contribution0.75%
  • Employees earning less than ₹176/day are exempted from contributing, but employers must pay their share.

ESI Return Filing

  1. Frequency:
    Returns are filed semi-annually (April-September and October-March).

  2. Documents Required:

    • Attendance registers
    • Salary records and challans
    • Contribution details for employees

  3. Submission Process:
    Upload the contribution file on the ESIC portal and make the payment.

Why Choose AK Mehta & Associates for ESI Services?

We provide end-to-end support for:

  • ESI registration for employers and employees.
  • Filing ESI returns accurately and on time.
  • Resolving compliance-related issues and audits.
  • Updating employee records and contribution details.

Contact Us Today

Stay compliant with ESI regulations and offer the best benefits to your employees. Reach out to AK Mehta & Associates for hassle-free ESI registration and filing services!

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