A corporate autonomous body, known as ESIC, administers the Employees State Insurance Corporation, which has members representing employers, employees, the central government, the state government, medical professionals, and Parliament. A registration in ESIC ensures that employees receive medical and monetary benefits in case of sickness, maternity, or employment injury, as well as provisions for related problems.
esi pf registration fees is a statutory responsibility of employers of factories or any establishment under Section 2-A of the Act read along with Regulation 10-B. ESI Act 1948 stipulates that it is mandatory. However, entrepreneurs can register online with a simple process by following the guidelines.
Who Must Obtain ESIC Registration?
In order to register with ESIC, any factory or business with 10 or more employees, irrespective of their salary level, must have at least 10 employees.
All employees with salaries under Rs.15,000 a month must pay ESI contributions. Employees with salaries under Rs.15,000 a month receive health and sickness insurance benefits.
The employer contributes 4.75% to ESI, while the employee contributes 1.75%. If all of the employees’ wages are over Rs.15,000 per month, then the organization will have to file a NIL return. ESIC coverage is mandatory for the following industries:
- Regardless of whether you use power in the process of manufacturing, factories with 10 or more employees fall into this category.
- Establishments employing 10/20 or more employees, including shops, hotels, restaurants, cinemas preview theaters, and road motor transport companies.
- Medical and educational institutions employ tens or more employees in certain states.
Registering with ESIC requires the following documents
- If applicable, a registration certificate or license is issued under the Shops and Establishments Act or Factories Act.
- Based on the constitution of the ownership of the establishment, the Memorandum and Articles of Association or Partnership Deed or Trust Deed will be used.
- CST/ST registration number, if available, and/or certificate of commencement of production.
- Position, salary, and employment position month-by-month.
- Partners or Directors’ List
- A PAN card and a proof of address for the factory, firm, or establishment
- Documentation supporting the commencement of production/business
- A copy of your bank statement
The Basic Procedure for Registering with the ESIC
By completing the Employer’s Registration Form (Form-01), a factory or establishment will be able to apply for registration, and a code number will be assigned to the organization.
It is a 17-digit unique identification number. At the time of registration, the employee must fill out Form – I and provide a family photo in duplicate.
Upon receiving an insurance number, the employee is issued a temporary identity card to obtain medical benefits for themselves and their families. Thereafter, a permanent identity card is issued, which is valid even after job transfers.
ESIC-covered companies must file an annual return, as well as show any changes that occurred during the prior year, and enclose all ESI contributions paid every six months with the contribution return.
The following records must be maintained by organizations under ESIC Registration:
- The attendance register;
- The Wage Register;
- Register Form-6;
- A record of accidents;
- A book of inspections
- Each month’s challans and returns are contained in this file.
Frequently Asked Questions
- ESI is the full form of what?The Employee State Insurance program is known as ESI
- The total salary is calculated in what way?Gross salary (basic salary and loss of pay dependent allowances) is used to calculate ESI up to $21,000. If the gross salary is higher than $21,000, the ESI remains constant.
- What is the eligibility for ESI?It is applicable to all factories and other establishments where 10 or more people are employed and where their salaries do not exceed INR 22,000 per month.