ESI Registration

Overview

Employee State Insurance (ESI) is a social security and health insurance scheme in India designed to provide financial protection to workers in case of sickness, maternity, disability, and death due to employment injury. ESI registration is mandatory for certain establishments and organizations. Here’s a concise guide on the ESI registration process.

Eligibility

• Employers: Any establishment with 10 or more employees (in most states) and where the employees earn up to ₹21,000 per month (basic + dearness allowance) is required to register for ESI.
• Employees: Employees working in an organization with ESI registration are automatically covered under the scheme.

ESI Registration Process for Employers

1.    Eligibility Check:

o    Ensure the establishment has at least 10 employees, earning less than ₹21,000/month.

o    If the establishment falls under the specified sectors, registration is mandatory.

2.    Documents Required:

o    For the Organization: PAN card, GSTIN (if applicable), address proof, bank account details.

o    For Employees: Aadhar card, passport-sized photo, and bank account details.

3.    Online Registration:

o    Visit the ESI Corporation (ESIC) official portal (www.esic.in).

o    Go to the “Employer” section and click on “Establishment Registration.”

o    Fill out the registration form with details about your establishment and employees.

4.    Obtain ESI Code Number:

o    After successful submission, ESI will verify the details and issue an ESI Registration Number (Code Number) for the establishment.

5.    Employee Enrollment:

o    Enroll employees into the scheme by submitting their personal details to the portal.

ESI Contribution Rates

• Employer Contribution: 3.25% of the employee's wages.
• Employee Contribution: 0.75% of the employee's wages.

The contribution is deducted from the employee's wages and deposited into the ESI fund by the employer. Contributions are made monthly.

ESI Benefits

• Sickness Benefits: Cash benefits for illness or injury-related incapacity.
• Maternity Benefits: Financial support for female employees during maternity leave.
• Disability Benefits: Compensation in case of temporary or permanent disability due to employment injury.
• Death Benefits: Benefits to the family in case of death during employment.

Due Dates for ESI Contributions

• Contributions must be deposited by the 15th of every month for the previous month's wages.

Penalties for Non-Compliance

FAQs for ESI Registration

 How can I enroll my employees under ESI?

• Employers must submit the employee’s personal details, such as Aadhaar number, photograph, bank details, etc., to the ESIC portal.
• Employees are enrolled once the data is submitted and verified.

 Can an employee withdraw ESI benefits in case of unemployment?

• If an employee becomes unemployed but has contributed for a certain period, they may be eligible for cash benefits under the Unemployment Benefit Scheme, if applicable in the state.

 Is ESI mandatory for all businesses?

• ESI registration is mandatory only for establishments with 10 or more employees and whose employees’ monthly wages do not exceed ₹21,000. However, certain specific types of establishments may be required to register regardless of the number of employees.

 Can an employee voluntarily contribute to ESI?

• No, ESI is a mandatory scheme, and both the employer and employee must contribute based on the employee’s wages. Employees cannot voluntarily opt out or contribute more to the scheme.