ESI Addition & Modification: Update Your Employee Details Seamlessly
Keeping your Employee State Insurance (ESI) records up-to-date is essential for ensuring employees can access their entitled benefits. Employers need to add new employees, update existing employee information, or deactivate employees who have left the organization. This process is termed ESI Addition & Modification.
When Is ESI Addition & Modification Required?
Adding New Employees
When hiring new employees earning ₹21,000 or less (₹25,000 for disabled employees), employers must register them under the ESI scheme.Updating Employee Details
Employers may need to update employee details such as:- Name or address changes.
- Salary modifications impacting eligibility or contribution amounts.
- Dependent details for medical coverage.
Deactivating Employees
When an employee resigns, retires, or is no longer eligible, their ESI status must be updated.
Documents Required for ESI Addition or Modification
Employee’s Aadhaar Card:
For identity verification.PAN Card:
For tax and identity purposes.Bank Details:
Employee’s bank account for claim settlements.Dependent Details (if applicable):
Spouse and child details for medical coverage.Employment Records:
- Joining letter or offer letter (for new employees).
- Resignation or termination letter (for deactivation).
Salary Records:
To ensure proper contributions are calculated.
Steps for ESI Addition & Modification
For Adding New Employees:
Log In to the ESIC Portal
Visit www.esic.gov.in and log in using your employer credentials.Navigate to ‘Employee Registration’
Go to the “Add New Employee” section.Enter Employee Details
Fill in details such as name, date of birth, salary, Aadhaar number, and address.Generate IP Number
Upon submission, the system will generate a unique Insurance Number (IP) for the employee.Share the IP Number
Provide the employee with their IP number for accessing ESI benefits.
For Modifying Employee Details:
Log In to the ESIC Portal
Use your employer credentials.Navigate to ‘Modify Employee Details’
Select the employee whose details need to be updated.Update Required Fields
Modify the necessary fields, such as name, address, or salary.Submit and Save Changes
Save the updated details and maintain a record of the changes.
For Deactivating Employees:
Log In to the ESIC Portal
Access your employer account.Navigate to ‘Employee Status’
Select the option to deactivate employees.Provide Exit Details
Enter the last working day and reason for deactivation.Submit and Confirm
Finalize the deactivation process.
Why Is ESI Addition & Modification Important?
Compliance with the Law
Timely updates ensure adherence to ESI Act requirements.Accurate Contributions
Avoid underpayment or overpayment of contributions by maintaining updated records.Employee Benefits
Ensures uninterrupted access to medical and other benefits for employees.Avoid Penalties
Non-compliance can result in interest charges, fines, or legal action.
Why Choose AK Mehta & Associates?
AK Mehta & Associates offers expert assistance for:
- Adding and registering new employees under ESI.
- Updating employee details efficiently.
- Handling deactivation and compliance requirements.
- Providing end-to-end ESI management solutions.
Get in Touch Today!
Simplify your ESI addition and modification process with AK Mehta & Associates. Let our experts handle your compliance while you focus on growing your business.