Know Everthing About ESI

Employees' State Insurance (ESI) is a health insurance and public social security scheme managed by the Employees' State Insurance Corporation (ESIC). The fund was started for Indian workers and is managed as per the rules and regulations set in the ESI Act 1948. ESIC is an autonomous and statutory body under the Labour and Employment Ministry, Government of India.

ESI is important payroll compliance in India. Under this scheme, the workers are offered different medical, monetary, and other benefits from the employer. ESI scheme offers workers with health and wellness benefits and allows employees to avoid monetary loss due to tragic situations. Various benefits which the ESI scheme covers are as follows:

Maternity benefit
Dependants benefit
Sickness benefit
Disablement benefit
Family pension
Rehabilitation allowance
Funeral expenses

Entities covered under the ESI scheme

Following are the entities that are covered under the ESI scheme

Shops
Cinemas
Hotels or Restaurants or engaged only in sales
Road motor transport establishments
Private educational institutions
Newspaper establishments

Know the benefits of ESIC Registration

There are different benefits of registering under the ESIC scheme which is as follows:

ESIC Registration offers you illness benefits at the rate of 70 percent (in the form of salary), in case of any certified sickness and which lasts for a maximum of 91 days in any year.
It offers medical benefits to an employee and the members of his family.
Women who are pregnant will be offered maternity benefits such as paid leaves.
If an employee dies while at work, 90 percent of the salary is given to his family members in the form of a monthly payment.
In case of disability of an employee, 90 percent of the salary is given to his family members in the form of a monthly payment.
Funeral expenses are also offered by the employer.
ESIC Registration also gives old-age medical care expenses.

Frequently Asked Questions

What is the eligibility criteria for ESI registration?

There are various criteria to be eligible for the ESI scheme which is as follows: • An employee or a worker’s monthly income should not be more than Rs.21, 000 and Rs.25, 000 in case of people with disabilities. • All companies with more than 20 employees must be registered under the ESI Act. • The companies need to redraft the CTC of all the employees who have a monthly gross salary of Rs 21,000 or less.

What are the steps for ESI registration?

The ESI registration process can be done online. Our professional experts at Credence Corporate Solutions process the application thoroughly at every stage, right from submission to completion, to ensure that registration is completed as quickly as possible. The process for ESI registration is: • Visit the ESIC website and click on login. • Next, click on ‘Sign Up. • Now enter the name of the employer, company name, state, region, email ID, and phone number. • Tick the checkbox to verify your company is under an exclusive labor contract, security agencies, manpower suppliers, and contractors supplying labor categories. • Now, Click on ‘Submit’ and you will receive an email with login credentials or details. • Visit the ESIC Portal to log in after the sign-up process is complete. • Enter the username and password received by email, to log in. • Click on the ‘New Employer Registration’ button. • Click on submit after selecting the type of unit. • Next, enter the name of the unit, the complete postal address of the company, and the police station under whose jurisdiction your unit is on the new page. • Enter if premises or building of the company is owned or hired and click on ‘Next’ to continue. • Next, fill in the nature of business and category, PAN details, and other details, and click on the ‘Next’ button. • Now, enter the date of starting date of the business establishment, factory, or company and license details (if any), on the next page. • Click on ‘Save’ after choosing the constitution of ownership and entering all the details of the owner. • Next, enter the number of employees working in your company and the employee numbers earning less than Rs.21,000, ‘Save’ and continue. • Fill in the date when the first 10/20 employees were employed and then click on ‘Employee Declaration Form’ on the new page. • Click on ‘Yes’ if the insured person is already registered and enter the IP number and joining date. Choose ‘No’ if IP is not registered and ‘Continue’. • Fill in the name of the IP and name of your father, date of birth, address, marital status, gender, family details, and joining date. • Tick on the checkbox and click on the ‘Submit’ button. • Click on ‘Close’ on the new page, after all, details are duly filled. • Choose the respective ESI branch office and the inspection division on the new page. • Click on the ‘Submit’ button after clicking on the checkbox to declare that information provided is correct. Now, you will be taken to a fresh page. • Click on ‘Pay Initial Contribution’ and select ‘Submit’ on the new page. You will be given a Challan number for future reference. • Last, ‘Continue’ to pay through the mandatory payment gateway.

ESI Important Due Dates Calender