Employee State Insurance (ESI) registration is a critical compliance requirement for businesses operating in India, overseen by the Employee State Insurance Corporation (ESIC). The ESI scheme provides essential social security and health insurance benefits to Indian workers earning below a specified monthly income, often covering their dependents as well. The requirement applies to establishments with 10 or more employees, depending on the business nature and location.
At Wealth4India, our team is committed to helping businesses efficiently manage the ESI registration process. With our deep expertise in regulatory frameworks and a focus on client satisfaction, we facilitate a smooth and hassle-free registration experience, ensuring that your employees receive the valuable benefits provided by the ESI scheme.
The Employee State Insurance (ESI) Scheme, established under the ESI Act of 1948, is a government initiative aimed at providing social security benefits to workers in India. Administered by the Employee State Insurance Corporation (ESIC), this scheme mandates that employers register their establishments with ESIC and submit detailed information about their employees for inclusion in the program.
Navigating the complex regulatory requirements set by the government can be challenging for employers. Wealth4India offers expert assistance to help you comply with these regulations and ensure your establishment meets all necessary ESI obligations.
For ESI registration eligibility, any non-seasonal factory or establishment with more than 10 employees (or 20 employees in certain states) must comply if their employees earn a basic wage/salary up to Rs. 21,000 per month (Rs. 25,000 per month for employees with disabilities). Registration with the Employee State Insurance Corporation (ESIC) must be completed within 15 days of becoming applicable.
Under the ESI scheme, the employer's contribution is 3.25% of the employee's total monthly wages, while the employee contributes 0.75% of their monthly wages. Employees earning less than Rs. 176 per day are exempt from the employee contribution. Wealth4India offers expert guidance to help businesses navigate the complexities of ESI registration and compliance, ensuring all legal requirements are met efficiently.
According to Section 1(5) of the ESI Act, the following entities are mandated to register under the ESI scheme based on government notification:
State Government Coverage:
These establishments must register with the Employee State Insurance Corporation (ESIC) if they employ 10 or more individuals.
Central Government Coverage:
These establishments are required to register with the ESIC if they employ 20 or more individuals.
Wealth4India offers comprehensive support to businesses, ensuring they adhere to ESI registration requirements and navigate the regulatory landscape smoothly and effectively.
For ESI (Employee State Insurance) Registration, businesses must provide the following documents in digital or electronic format for the online registration process on the ESIC website:
For the online ESIC registration process, businesses are not required to submit physical documents. All necessary documents must be uploaded digitally during the online registration.
Following registration with the ESI (Employee’s State Insurance) scheme, an establishment must meticulously adhere to specific compliances to maintain regulatory alignment and operational efficiency. These critical compliances encompass:
Attendance Register Maintenance: The establishment is obligated to maintain an accurate attendance register to track the presence of all employees. This register serves as a foundational document for compliance purposes and internal record-keeping, ensuring transparency and accountability in workforce management.
Register of Wages: A detailed register documenting wages for all employees must be consistently updated and maintained. This register plays a pivotal role in transparently recording salary particulars, thereby upholding compliance with ESIC regulations concerning employee remuneration.
Inspection Book: An inspection book is mandated to record any inspections conducted on the premises. This organized documentation fosters transparency and facilitates smooth regulatory compliance during official inspections, promoting a culture of adherence and preparedness.
Monthly Return and Challan Submission: The establishment is required to diligently submit monthly returns and challans within the initial 15 days of the subsequent month. This entails furnishing comprehensive employee details, attendance records, and corresponding ESIC contributions, ensuring timely and accurate compliance reporting.
Accident Register: Maintenance of an accident register is imperative to record and track workplace accidents effectively. This register serves as a critical tool for compliance, enabling proactive measures for workplace safety and risk mitigation.