The Employee State Insurance (ESI) is among the most important social security and health insurance schemes for workers in India. It is regulated and controlled by the Employees’ State Insurance Corporation (ESIC), which is an autonomous organisation under the Ministry of Labour and Employment. The scheme offers monetary and medical support to employee and their dependents during sickness, maternity, injury, or death caused by risks of employment.
The Employees’ State Insurance Act, 1948, requires ESI registration of establishments with 10 or more employees. Both the employers and the employees make contributions to the scheme, and this guarantees both of them a broad variety of medical and social security benefits.
ESI Registration Advantages
ESI is providing a lot of benefits to its registered employees and their dependents. These include:
- Sickness Benefits, 70% of the wages benefit to a maximum of 91 days in a year in the event of a medical leave due to certified sickness.
- Comprehensive health cover for the employees and their dependents upon registration.
- Maternity benefits- 26 weeks of paid leave to the registered female employees, with an extension of 30 days based on medical recommendation.
- Depending on the case of death caused by employment, a dependent will be entitled to 90 percent of the employee’s salary as monthly compensation.
- Monthly compensation in case of temporary or permanent disability.
- Up to 15000 ₹ on funeral costs.
- Post-retirement medical care for employees and their spouses.
The above advantages qualify ESI to be a holistic and reliable social security program for employees in India.
Documents to be Provided During ESI Registration
The documents that are normally needed for establishment under the ESI scheme are the following:
- Registration certificate – Shops and Establishments Act or Factories Act.
- Company documents (MoA, AoA), certificate of incorporation.
- Partnership deed or LLP agreement (where it exists).
- Pan card and salary details of all the employees.
- PAN card of the business enterprise.
- Cancelled cheque of the bank account of the company.
- Details of directors or partners and their proof of identity.
- Wage register and attendance register.
Once the employer has these documents, he or she is capable of going online to continue with the registration process.
ESI Registration Step-by-Step Process
The entire process of registration under ESIC is online, and the same can be done via the official ESIC portal. The procedure is as follows:
- There is the Employer Registration Form (Form-1), which can be downloaded and filled in on the ESIC portal.
- Upload the completed form together with the supporting documents via the portal.
- On verification, ESIC will yield a 17-digit unique registration number to the employer.
- It is under this number that the employees will be registered, and they will be given ESI cards after providing their family details and photographs.
The ESI registration is a permanent and one-time registration. The procedure requires that any changes, including the addition of new workers, should be made using the portal whenever there is an update.
ESI Return Filing Process
Once the registration is done, the employers need to furnish the ESI returns twice yearly. Such returns are an indication of the alterations in the staff details and contributions that have been made in the last six months.
The dates of returns that are to be filed are:
- 11th November (in case of April to September)
- 11th May (October to March period)
The documents required to file ESI returns are:
- Attendance register
- Wage register
- Form 6 register
- Monthly ESI challan and receipts
- Accident register (as any)
- Inspection book
The employer has to log in with 17 17-digit ESIC registration number and verify the monthly contributions and correct or supplement any challans of contributions not made, and finally submit the return. The employers who have a workforce of 40 and above are expected to pass a certificate as a Chartered Accountant before posting it.
Conclusion
One of the most important legal requirements for a business that employs 10 or more people is ESI registration and filing of returns. ESI not only takes care of the welfare of the employees by providing a strong social security mesh but also makes companies legally compliant as per the Indian labour laws.
Although systematic, the process may be complicated for first-time users. Professional firms, such as Kanakkupillai, provide comprehensive support in ESI registration, document preparation, and ESI return filing, allowing business owners to focus on other compliance-related matters with ease.
