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ESI Registration

Registration and License

A labour law mandate, ESI registration is the pre requisite to ensure employees and their families' medical needs are met without hassles. ESI registration, a responsibility of the employer entity is a process of application along with documents and details. And an identity of an empathy, commitment, and action taker with regards to the welfare of one of the most valuable assets of an entity, the human capital.

Employee State Insurance or ESI is a social security scheme offered by the Government for the employees and their families. The regulating body of the scheme is Employee State Insurance Corporation.

ESI comes under the purview of the Employee State Insurance Act, 1948. This Act was one of the first legislative decisions of independent India. The Act essentially focuses on providing socio-economic protection for the employees in the organised sector.

The ESI scheme covers normal health eventualities that a worker might get exposed to during his employment period. Some examples of such eventualities are:

  • Maternity leave
  • Sickness
  • Disablement,
  • Employment-related injuries

The ESI scheme helps the employees restore their dignity and survival without any dependency during times of any unapprehended crisis.

The employee needs to fall under relevant criteria to avail of the benefits of the ESI scheme

Company

When an establishment crosses nine employees and moves to the 10th employee, the company comes under the purview of the ESI Act and is liable to provide the employees with ESI contribution.

Employee

An employee who has less than Rs 21000 salary per month is eligible to avail of the benefits of the ESI scheme.

The employee and the employer have to contribute to the ESI funds. Calculation of the ESI contribution on the employee's salary comes over the gross takeaway that is salary after the loss of pay(if any), The employee's contribution comes up to 0.75%; the employer's contribution comes to 3.25%.

The key benefits of the Employee State Insurance scheme are:

Medical Benefits: From the time an insured employee starts employment, the medical care concerning the employee and his/her entire family will be under the purview of the scheme.

Maternity Benefit: An employee has to serve 70 days in the two preceding contribution periods to avail of the maternity benefit under the ESI program. The Maternity benefit is payable during pregnancy or confinement for 26 weeks with a one-month extension period with the doctor's advice, at the full salary rate.

Sickness Benefit: The certified sickness period for an employee is a maximum of ninety days annually. The cash compensation in such a case will amount to 70% of the salary drawn. To be eligible for this, the work should at least contribute for 78 days in the course of 6 months.

Temporary Disablement: From the time of joining to the insurable employment, irrespective of the contribution and in case of an employment-related injury, the employee is eligible for the benefit of 90% of the total wage, till the disability persists.

Permanent Disablement: The benefit comes up to 90% of the total salary, depending on the loss of earning capacity as decided by the Medical Board.

Death: In the case of the death of the employee, the bereaved family is eligible for 90% of the wage as a benefit of ESI. Other expenses that will come under the ESI scheme are funeral expenses and confinement expenses.

Profito Global helps the eligible companies in the registration process under the ESI scheme. Profito Global understands the business requirements and guides them to the proper filing of the ESI registration hassle-free.

    • The Registration document concerning the type of establishment.
    • Memorandum of Association and the Articles of Association.
    • Address of the Establishment
    • List of employees in the organisation.
    • PAN card of the establishment and the employees.
    • Compensation details of the employees
    • List of shareholders and directors or owners of the establishment.
    • Cancelled Cheque of the bank account of the company/copy of bank statement
    • Attendance Register
    • Shops
    • Cinemas
    • Road Motor transport Establishments
    • Private Educational Institutions
    • Hotels or restaurants
    • Newspaper establishments
    • Private Medical Institutions.
  • As and when the establishment crosses the threshold limit, it must register under the ESI Act. The employer should register the establishment within fifteen days of its applicability.

  • Yes, if the factory or establishment can prove that it has a much superior programme than the ESI scheme.

  • No, as overtime is not a continuous or regular amount of payment.

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