"Efficient ESI Registration | StartupFino"

Author : pari khanna | Published On : 21 Nov 2023

ESI (Employee State Insurance) registration is a mandatory process in India for certain employers and their employees. ESI is a self-financing social security and health insurance scheme for workers in India, which provides medical and cash benefits to employees and their dependents. Here are the key points related to ESI registration:

  1. Applicability: ESI registration is applicable to factories and establishments with 10 or more employees. In some states, the threshold is 20 employees. It applies to both the employer and the employees.
  2. Benefits: ESI provides benefits such as medical, sickness, maternity, disability, and dependent benefits to employees and their families.
  3. Contribution: Both the employer and the employee make contributions to the ESI fund. The employer contributes a percentage of the employee's wages, while the employee contributes a smaller portion.
  4. Registration Process:
  • Employers need to register their establishment under ESI within 15 days from the date the ESI Act becomes applicable to them (i.e., when they meet the employee threshold).
  • Employers must fill out Form 01 and submit it to the appropriate ESI office along with the required documents.
  • Once the registration is approved, the employer will receive a 17-digit unique identification number known as the 'ESI Code Number.'
  1. Documents Required for Registration:
  • PAN card of the business/establishment.
  • Address proof of the business.
  • List of employees with their monthly salary details.
  • Bank details of the business for fund transfers.
  • Memorandum and Articles of Association for companies, partnership deed for partnerships, etc.
  1. Benefits of ESI Registration:
  • Compliance with legal requirements.
  • Access to medical facilities for employees.
  • Financial assistance during sickness or maternity.
  • Provides security to employees and their families.
  1. Penalties for Non-Compliance: Failure to register under ESI can lead to penalties, fines, and legal action against the employer.
  2. Filing and Contribution: Employers are required to file ESI returns regularly and deposit the ESI contributions on time, usually on a monthly basis.
  3. Employee Registration: After the establishment is registered, individual employees are also required to register and obtain an ESI card.
  4. Changes in Employment: Employers must also update the ESI records when there are changes in employment, such as new hires, resignations, or terminations.

It's important for employers to understand and comply with the ESI regulations to ensure the welfare of their employees and to avoid legal consequences. The specific procedures and requirements for ESI registration may vary by state in India, so it's advisable to consult with the local ESI office or seek legal advice to ensure accurate compliance.