What Is Employee State Insurance Corporation?
Employee State Insurance Corporation or ESIC is a self-financing social security and health insurance scheme which provides medical benefit, sickness benefit, maternity benefit, disablement benefit and various other benefits such as funeral expenses, free supply of physical aids etc. to the employees and their family.
Choose ESI Registration because :
Provides complete medical care to employees , Includes employee's dependants also, Mandatory for units with 10 employees
What Is Employee State Insurance Corporation?
Units or Establishments that have 10 or more employees, drawing the wages of up to Rs.15,000 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. At present, covered employees contribute 1.75% of the wages to the ESIC and covered employers contribute 4.75% of the wages, payable to their employees. The state government also contribute 1/8th share cost of medical benefit. ESI Registration is done through TaxOSmart.
What Is Included In Our Employee State Insurance Registration Package?
ESI Consultation
Employer Registration
Employee Registration
Documentation
Documents Required for Employee State Insurance Registration
Registration Certificate or Licence issued under Shops and Establishment Acts or Factories Act.
Memorandum and Articles of Association/Partnership Deed/Trust Deed depending on the entity that is applying for registration.
Evidence in support of the date of commencement of production/business/first sale (e.g. Copy of First Invoice).
Address Proof: Latest Rent receipt of the premises you are occupying indicating the capacity in which the premises are occupied, if applicable.
Photocopy of certificate of Commencement of production and/or Registration No. of CST/ST (or GST once it becomes applicable).
Copy of bank statement
Advantages Of ESI Registration
It provides complete medical benefits
It includes dependants
It can be used at different ESI dispensaries and hospitals
Any payments made will be reimbursed
It takes the needs of the disabled into account
Access to Medical care in ESI Dispensaries/Hospitals
ELIGIBILITY FOR ESIC REGISTRATION
If a company/organisation/business establishment employs 10 or more employees/workers and in the case of Maharashtra and Chandigarh more than 20 employees ESI registration is required. The company should register itself with the ESIC.
As for workers or employees, they are covered or entitled under ESI when they earn less than Rs.21,000 per month and Rs.25,000 in the case of a person with disability. The worker contributes 1.75% of their salary while the employer contributes 4.75% towards the ESI scheme Please note that these rates are revised from time to time. Those workers whose daily average wage is up to Rs.50 are exempted from contributing to the ESI fund; however, employers will continue to contribute towards these workers.
Concerns Related To ESIC Registration
Minimum The ESI scheme is a self-financing scheme from the contributions. The ESI scheme funds are primarily built out of contribution from employers and employees monthly at a fixed percentage of wages paid. The State Governments also contributes 1/8th share of the cost of Medical Benefit.
ESI Registration
Ideal for Start-ups Going for Funding & Growing Business
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