ESI stands for Employees State Insurance is a scheme commence by the Government of India under the Jurisdiction of Ministry of Labour & Employment with providing integrated social security and social protection to workers and their dependents of the establishment.
BENEFIT OF ESI REGISTRATION
ESI Registration ensures that employees enjoy the following benefit under the Employees State Insurance Act, 1948.
- Sickness benefit
- Maternity benefit
- Disablement benefit
- Funeral Expenses
- Dependent benefit
- Physical Rehabilitation
- Medical benefit
- Medical treatment by state government
- Medical and Para-medical Education
- Old Age Medical Care
APPLICABILITY TO COVER UNDER ESI REGISTRATION
The ESI Act, 1948 applies to following categories of factories and establishments in the implement area:
- Non-seasonal factories using power and employing ten (10) or more persons and wages of such employee are less than 21000/- per month.
- Non-seasonal and non-power using factories and establishments employing twenty (20)
DEFINITION OF ESTABLISHMENT UNDER ESIC REGISTRATION IN INDIA
According to the notification issued by the appropriate Government (Central/State) under Section 1(5) of the Act, the following establishments employing 10 or more persons attract ESI registration cover following establishment.
- Commercial Establishment
- Eating House
- Residential Hotel
- Other place of amusement & entertainment
It is the statutory responsibility of the employer under Section 2A of the Act read with Regulation 10-B, to register their Factory/ Establishment under the ESI Act within 15 days from the date of its applicability to them.
CONTRIBUTION BY EMPLOYER & EMPLOYEE
The rates are revised from time to time, currently (w.e.f. 01.07.2019)
- The employee’s contribution rate is 0.75% of the wages and
- That of employer’s is 3.25% of the wages paid/payable in respect of the employees in every wage period
- Employees in receipt of a daily average wage upto Rs.137/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
- An Employer is liable to pay his contribution in respect of every employee and deduct employee’s contribution from wages bill and shall pay these contributions at the above specified rates to the Corporation within 15 days of the last day of the Calendar month in which the contributions fall due.
ONLINE REGISTRATION PORTAL
Through the online portal of Unified Shram Suvidha Portal (USSP), you can apply for registration. Link: https://registration.shramsuvidha.gov.in/
Next, opt for the registration and provide all the required details.
DOCUMENTS REQUIRED FOR ONLINE ESI REGISTRATION
- Certificate of Incorporation/Establishment License/Registration Certificate.
- Address proof of Enterprise
- Copy of bank statement
- Copy of Utility bill of any company
- Any license/certificate/number issue by any government authority
- If Factory Specify
- Factory License No.
- Date of License Registration
- If Startup Specify
- Startup Registration No.
- Startup Registration date
- If MSME Specify
- MSME No.
- MSME Registration No.
- Memorandum and Article of Association or Partnership Deed, Trust Deed Date of Registration of Establishment Establishment Category
- Scan copy of PAN (As per Establishment)
- Specimen Signature of Employer
- Name of Income Tax ward
- Nearest Police Station details
- Ownership type (i.e. lease, owned)
- Scan Copy of cheque
- GST No. if any
- Primary Business Activity
- Subcategory of Nature of work
- Ownership Detail
- Primary Owner Name
- Photograph of Primary Owner
- Mobile & Email id of Primary Owner
- Address of Primary Owner
- Name and Email Id of Primary Owner
- No of Employee drawing salary less than 21000/- pm
- Details of all employees along with salary information
- Scanned copy of Consent letter of the majority of employees with their details and signatures. (Only in case of voluntary coverage) Digital Signature of the Owner
- Mobile & Email id of all employees
- Bank Account details of employer & Employee
After successful submitting all documents department will generate LIN No (Labour Identification Number) to the Establishment by which you can access your data or file Annual (DGM/CLC) Return and Monthly ECR Returns.
RETURNS TO BE FILED UNDER ESI BY EMPLOYER
Return to be filed through online portal of Shram Suvida E-Return Facility having link:
- Annual DGM/CLC Return
- Monthly ECR Return
Also, the following documents must be maintained regularly, for filing ESI returns.
- Attendance register
- Register for Form – 6
- The Register of wages
- Register of any accidents on the premises
- Inspection book
- Monthly challans and returns submitted for ESI
CONSEQUENCE OF NON PAYMENT
Non-payments, delayed payments, or falsifying payments under ESI Act may attract imprisonment for a period extending up to 2 years and a fine of up to Rs 5,000.
CONSEQUENCE OF DELAY PAYMENT
An employer who fails to pay the contribution within the limit specified in the regulation shall be liable to pay simple interest at the rate of 12% per annum in respect of each day of delay or default in payment of contribution.