Start and Grow your Business
We are India’s leading Financial and Secretarial Advisor to Small, Medium and Large Business enterprises for their various requirements.
Why Choose us
- Cost Effective Services with Easy EMI
- Quick Turnaround Time
- Transparent Process & No Hidden Charges
- ISO 27001:2013 Certified for Data Security
- Recognised by Govt. of India
- Professional & Experienced Team
- 5000+ Satisfied Customers
- Enduring Business Relationship
Get in touch now for a FREE CUNSULTATION at +91-8866277244
Request a Callback
ESI stands for Employee State Insurance managed by the Employee State Insurance Corporation which is an autonomous body created by the law under the Ministry of Labour and Employment, Government of India. It is a self-financing social security and health insurance scheme for Indian workers.
Units or Establishments that have 10 or more employees, drawing the wages of up to Rs. 21,000 a month are required to be registered for ESIC under the ESI Act 1948. The benefits provided by the scheme are funded from the contributions raised from covered employees and their employers at the fixed percentage of wages. The employer has to contribute 3.25% of the total wages paid to employees, while employee contribution shall be 0.75% of his total wages. The responsibility to deduct the employee contribution is on the employer.
ComplianceIndia can help you obtain your ESI Registration quickly and hassle-free.
Advantages of ESI Registration
Liability for ESI Registration
ESI Registration is mandatory for every factory and specified establishments who have 10 or more permanent employees and wages of such employees are less than Rs. 21,000/- per month.
In case of any non-compliance by an employer, such as failure to get ESIC employer registration online or not fulfilling ESI Return filing procedure, he shall be liable for a fine of INR 10,000/-.
How we Work?
Documents required for ESI Registration
Frequently Asked Questions
1. What is ESI?
ESI stands for Employee State Insurance. This is a government regulated Insurance scheme for employees and their family, as health insurance covering sickness, maternity, disability, etc.
2. Who mandatorily required ESI registration?
Every shop, establishment, and factory having 10 or more employees requires to get register under Employees’ State Insurance.
3. How much does employee contribute towards ESI?
Out of the total 6.5% amount that goes towards ESI, only 1.75% is deducted from the employee’s salary, rest is contributed by the employer.
4. What are the incentives introduced by the government for ESI members?
The government has introduced various health care benefits for poor families. The families covered under NHPS scheme can access medical facilities via ESI Hospitals. Besides, employees covered under the ESI scheme are entitled to medical treatment for them and their dependents.
5. What are other incentives for the ESI members?
The ESI members are entitled to unemployment cash benefit, maternity benefit and allowance in case of female employees. Besides, there is a disablement benefit also.
6. How does ESI registration contribute in pension?
The employees covered under the ESI scheme are entitled to a family pension.
7. Do I need to physically present the process?
No, You don’t need to be physically present for the process, Compliance India is an online catering platform all you need is an internet connection in your phone/computer and the required documents with you and we can get the job done no matters even if you are present at the remotest location of India
8. What is the procedure for registration of an employer?
An employer shall apply for FORM 01 within 15 days after the act becomes applicable to a unit or establishment.
9. Is it mandatory for the employer to register under ESI?
Yes, it is mandatory requirement for every employer who comes under this act to register their Factory/ Establishment.
10. What are the compliance requirement?
Every employer covered under this act has to comply with various compliances such as deposit of monthly contribution, in order to file half yearly return and report to ESIC authorities if there is any change in business activity, address, ownership and the management, maintenance of registers and records etc.
11. Whether the benefits grant to insured employees are transferable?
No, right to receive any benefits under this act is not transferable.
12. What is the ESI Code number?
It is a 17-digit unique identification number allotted to every registered establishment. This number is generated through the ESIC portal on submission of the required information by the employer or generated on receipt of a survey report from the Social Security Officer.
13. Can an establishment or factory once covered go out of coverage if the number of persons employed falls below the minimum limit prescribed?
Once a factory or an Establishment is covered under the Act, it continues to be covered despite the fact that the number of covered employees employed at any time falls below the required limit or there is a change in the manufacturing activity.
14. Is overtime to be included for wage ceiling limit for coverage of an employee?
No. Overtime is not included for calculating the wage ceiling limit for coverage of an employee. But, it is included for payment of contribution to cover the risk during the period of overtime work, and to enable receiving cash benefits at an enhanced rate also.
15. What is the time limit for payment of contribution?
Contribution will be paid for an employee in to a bank duly authorised by the Corporation within 21 days of the last day of the month in which the contribution is due for any wage period.
16. Is there any interest on delayed payment?
An employer who doesn’t pay the contribution within the time limit, will be liable to pay simple interest at the rate of 12% per annum for each day of default or delay in payment of contribution.
17. Why registration of an employee is necessary?
Registration of employee is the necessary to identify the employee and to provide such employee the benefits under the Act which are related to the contributions paid by the employer on behalf of each of the insured persons.
18. What is maternity benefit?
Maternity benefit is cyclical payments to an insured female employee for specified period of absence from work, due to confinement, miscarriage or sickness out of pregnancy, premature birth of child or miscarriage or confinement. The amount of maternity benefit is equal to the standard benefit rate.
19. What are funeral expenses? Who is to be paid?
A lump sum amount not more than Rs. 15,000/- appropriated towards expenditure on the funeral of a deceased employee, is paid either to the eldest surviving member of the family or if he is without family or not living with his family at the time of death, then to the person who actually performs the funeral of the deceased employee.
20. What is standard benefit rate?
Standard Benefit Rate means average daily wages calculated by dividing the total wages paid during the contribution period by the number of day for which these wages were paid.