ESI Registration

ESI Registration

The government established the ESI initiative for Indian workers. Employee State Insurance is known as ESI, and it is run by the Employee State Insurance Corporation (ESIC). 

Workers receive social security through the ESI plan. Each month, a portion of an employee's pay is contributed to ESI by both employers and employees. Large range of financial, medical, and other benefits are offered to employees covered by the ESI Act.

What is ESI?

Under the ESI Act, the Employees' State Insurance Corporation (ESIC) was established. It is a distinct entity governed by regulations overseen by the Indian government's Ministry of Labor and Employment.

Being a legal organization, the entity is able to borrow money and repay it, provided the regulatory authority has given its prior consent. It can also buy real estate in its own name and acquire both movable and immovable property. The corporation will also keep all profits made from its operations.

The state government is in charge of the bulk of hospitals and dispensaries, although the corporation is free to build hospitals on its own or in partnership with other private institutions or the state government.

Qualifications for ESIC Registration

Any non-seasonal factory or establishment with more than 10 employees (up to 20 in some states) and a maximum basic wage or salary of Rs. 21,000 per month (or Rs. 25,000 for individuals with disabilities) falls under the purview of the ESI scheme. As a result, they are required to register with the ESIC within 15 days of the scheme's application date.

In accordance with this system, the employee merely needs to contribute 0.75% of his monthly compensation each month of the year, while the employer must contribute 3.25% of the entire monthly wage payable to the employee. The employee is excused from paying his contribution if his daily earnings is less than Rs. 176.

How Can You Apply for ESIC Online?

The five steps that make up the registration process are as follows. Logging into the website is the first step in the ESIC registration procedure, and the creation of a registration letter is the last one.

Step 1: Open the Portal

Employers must create an account on the ESIC Portal. To accomplish this, they must log in to the ESIC website and choose the "Sign Up" button, which is found on the homepage beneath the "Employer Login" option. Companies that click the "Sign up" button need to fill out the form.

Step 2: Information for Logging In

The employer will receive an email verification at the email address and mobile number they supplied during registration, following the submission of the portal registration application. The login credentials needed to register as an employer or employee of ESIC will be included in the email.

Step 3: Completing the Employee Registration Form 1

In the third step, use the username and password from the email to log into the ESIC portal. On the next page, "New Job" will take its place. Registering a new business: From the drop-down menu, choose "New Employer Registration." When done, click "Submit" after choosing "Unit Form" from the drop-down menu. A "Register of Employers" form will display, which the employer must fill out. This registration contains information on the employer and the employees. To finish the application, the employer needs to click the "Submit" button after filling out every field.

Step 4: ESIC Application Fees

The employer will be sent to the "Payment of Advance Contribution" option after submitting the Employer Registration Form-1, where they must input the amount owed and select the mode of payment. The employer has the liability for the six-month deferred contribution.

Step 5: Write a Letter of Registration

The ESIC department provides the employer with a system-generated Registration Letter (C-11) with a 17-digit Registration Number whenever the employer successfully completes the six-month advance contribution payment. The employer's registration is attested to by the Registration Letter (C-11).

What advantages does ESIC offer to both employers and employees?

The following are some ways that the ESI system benefits the employees:

• Benefits for medical care for dependent family members and employees
• 70% of daily earnings in cash is paid out as sick benefits for any certified illness that lasts no more than 91 days per year.
• Maternity benefits are payable for the entire 26-week pregnancy, and on the recommendation of the medical officer, benefits may be further extended for an additional month.
• If an employee passes away while they are working, their dependents will get 90% of their whole income each month following the death.
• same benefits in the event that an employee becomes disabled
• burial costs
• Medical costs for elder care

Employers covered by the 1948 ESI Act are entitled to the following benefits:

• Employers are released from any liability with regard to providing dependent family members and employees with medical care in whatever format.
• For employees covered by the ESI Act, employers are excluded from some necessary laws, such as the Employees Compensation Act and the Maternity Benefits Act.
• Employers who make contributions under this system are eligible for tax exemption under the Income Tax Act.

Compliances Following Registration with the ESIC

Following ESI (Employee's State Insurance) registration, an establishment needs to file the necessary ESI returns and follow certain compliance requirements. These responsibilities are essential to maintaining smooth operation and compliance with legal requirements. The following are the required compliances:

• In order to track each employee's attendance, the business needs to keep a strict record of it. This acts as a foundational record for internal record-keeping and compliance.
• Carefully kept records of all employee wages should be kept in one place. This register guarantees compliance with ESIC requirements and is essential for the clear reporting of salary details.
• Any inspection conducted on the property must be documented in an inspection book. Transparency and regulatory compliance are facilitated during official inspections thanks to this.
• The establishment is required to turn in monthly returns and challans within the initial fifteen days of the following month. This entails giving information about the personnel, their attendance records, and the corresponding ESIC contributions.
• It is required to keep a record of all accidents that occur on the property. For compliance, accurate accident reporting is necessary. It makes it easier to take a proactive stance on workplace safety.

At Lawgical Adda, we approach this duty with the utmost caution and attention to detail since we understand how important it is for employers to file ESI returns. We've made the filing of your ESI returns simplified, effective, and time-saving. Our commitment to transparency means that you will get frequent updates at every stage of the procedure.