Employees State Insurance Registration
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Employees State Insurance Scheme at a glance
The ESI Scheme applies to factories and other establishments such as road transport, hotels, restaurants, cinemas, newspapers, shops, and educational/medical institutions where:
- 10 or more workers (20 or more in some states) are employed.
- Workers draw a salary or wages up to Rs. 21,000 per month.
The ESI Corporation has extended the benefits of the ESI Scheme to workers deployed on construction sites located in implemented areas under the ESI Scheme since August 1, 2015.
Under the ESI Scheme:
- Employers contribute 4.75% of the wages.
- Employees contribute 1.75% of the wages.
- Employees earning less than Rs. 137 per day as daily wages are exempted from paying their share of the contribution. Employers, however, must contribute their share for these employees.
Legal requirement of Employer towards Employees State Insurance Scheme
To start a business in the United Kingdom, you’ll need to adhere to the following steps and requirements:
Compliance and Registration: It is a statutory obligation for employers to comply with the provisions of the ESI Act, 1948, and register their factory/establishment under the ESI Act within 15 days from the date of its applicability.
Enrollment of Eligible Employees: Enroll all eligible employees on your rolls (regular or contractual) with wages up to Rs 21,000 at the time of joining the establishment. Obtain a Temporary Identity Certificate (TIC), which will be converted into a Permanent Identity Card (PIC) upon linking of Aadhar with the insurance number. The PIC allows the employee and their family members to avail benefits under the ESI Scheme.
ESI Contribution: Employers contribute 4.75% of the salary (Basic + DA + Retaining allowance), while employees contribute 1.75%, which is deducted from the employee’s salary and deposited into the ESI Account within the due date.
Monthly Return Filing: Every month, file the ESI return online with details of employees, salary, and ESI contribution amount within the due date.
Remittance of Monthly ESI: Deposit the total contribution amount (employer and employee) in any branch of SBI by generating a challan online through the ESIC portal using your credentials. ESIC has enabled online payment of ESI Contribution by employers via the payment gateway of 58 banks, including SBI.
File Half-Yearly Return: Employers need to file a half-yearly return.
Maintenance of Records: Maintain records such as wage records, books of account maintained under other laws, accident register in Form-11, an inspection book, and an Employees’ Register for employees deployed to the principal employer. It is advisable to preserve these records for at least 7-10 years.
Documents requirement for Employee State Insurance Registration
Permanent Account Number
Digital Signature of Employer
Bank Details ( Cancelled Cheque)
List of Eligible Employees with Salary breakup
Address Proof ( COI/Telephone/Electricity/Water bill)
Partnership Deed ( for Partnership Firm)
Memorandum and Articles of Association of the Company
Factory License/Shop & Establishment Registration Certificate
Registration process of Employees State Insurance
For starting a business in the United Kingdom, you will need to complete the following steps and provide the necessary documents:
Employer Signup: Sign up on the ESIC website with your company name, principal employer details, state, region, email ID, and mobile number.
Get User ID and Password: After successful signup, you will receive an email with your login credentials at the registered email ID.
Select Unit Type: Log in and select your establishment type (Factory or Shop Establishment) when applying for new registration.
Prepare Application Form (Form-01): Fill in all the required information in Form-01, including employee details (gender-wise total employed directly or through a contractor).
Upload Documents and Attach DSC: Upload all relevant documents and attach the digital signature certificate (DSC) of the employer.
Pay Advance &/or Submit: Submit the form and view/print the Registration Letter (C-11), which will also be sent to your email ID. The C-11 is a computer-generated letter and serves as proof of registration under the ESI Act.
Advance Contribution: If your business falls under certain categories such as security agencies, contractors, or manpower suppliers, you may need to file an advance contribution of 6 months’ estimated ESI during registration.
After submitting the registration form, the system will display a success screen.