Employee’s State Insurance (ESI) is a self-financing social security and health insurance scheme for Indian workers. For all employees earning INR 21000 or less per month as wages, the employer contributes 4.75% and employee contributes 1.75 % – total share 6.5 percentage.
This fund is managed by the ESI Corporation (ESI) according to rules and regulations stipulated therein the ESI Act 1948, which oversees the provision of medical and cash benefits to the employees and their family through its large network of branch offices, dispensaries and hospitals throughout India. ESI is an autonomous corporation under Ministry of Labour and Employment, Government of India. But most of the dispensaries and hospitals are run by concerned state governments.
Employees registered under the ESI enjoy a range of benefits under the scheme. Employee enjoy medical attendance and treatment for the person insured and their families including full range of medical, surgical and obstetric treatment, supply of all drugs, ambulance services, super-specialty consultation, etc., In addition, to the medical care, insured persons also enjoy sick pay benefits. Registration with ESI provides the employee with tremendous benefits and improves worker morale and retention.
APPLICABILITY & REGISTRATION PROCESS FOR EMPLOYERS
Any employer having more than 10 employees in a facility run with power and 20 employees without power are mandatorily required to take up the ESI Registration.
- The employer to which the provisions of ESI Act, 1948 shall furnish all the requisite particulars in triplicate in prescribed form to appropriate authority within 15 days from the date when the act becomes applicable. Employer shall be responsible for all the particulars furnished in the registration form.
- Upon receipt of completed employee registration form, concerned authority shall allot an employer’s code and inform the employer about the same. Within 15 days of submission of Employer’s registration form (Form-01), the company or firm is expected to obtain an Identification number or Code Number from the Regional office. Once, registered the organization is allotted a 17 digit unique identification code. Form3 accompanies Form 1.
- Thereafter, employer shall quote employer’s code number in all documents to be submitted in connection to the act in all the correspondences with the appropriate office.
- Further, employer shall be liable to pay subscription on behalf of employee and deduct the subscription amount from the wages of an employee, as prescribed in the Act and in the manner as stated
- Documents are about the establishment of the company.
- Evidence supporting date of commencement of production/business.
- List of partners, stakeholders, directors along with necessary information and proof of address.
- Copy of PAN
- Identity proof like voter id/passport
- List of employees
APPLICABILITY FOR EMPLOYEES
ESI contribution is required for employees earning less than Rs.21,000/- per month.
- At joining the Private Limited Company, an employee required to fill the Declaration form i.e. Form1 along with a copy of the family photo which the employer will be submitting at the ESI branch office.
- Within 3 months a permanent photo ID is provided to the employee and will be provided an insurance number for identification purpose under the scheme.
- Once registered, the registration can transfer if the employee switches company.
HOW WE CAN HELP YOU
- Filing of necessary papers and obtaining ESI registration code number for new establishment within specified time as per Act & procuring the code number.
- Facility of online Registration of the employees for benefits under the ESI.
- To interact with ESI Branch office authorities to obtain ESI Cards to the Contributors.
- Submission of Accident Reports, in the event of risk occurred.
- Provide temporary Identity Card (TIC) by downloading and Printing of the same for use of employees & Insured persons.
- Obtaining Permanent Identity Card (PIC) from the ESI Branch office.
- To help the Members in case of changes in the family, Loss of identity cards, etc.,
- To advise the Employees in case of sickness, disablement, Maternity, etc.,
- Guiding the management in labour oriented payments / Accounts / Lawful matters, and assisting at the time of ESI inspections
- Correspondence/Liaison with ESI Department.
- Information regarding any amendment/changes in the act will be informed immediately.
- Maintain Individual Employees Record
- Registration under the ESIC Act.
- Maintain 32 No. Register, Accident Register.
- Maintain/submit the D.F. of New Employee.
- Maintain/submit the accident report.
- Maintain/submit the accident report .Dealing with the Inspector for ESI Inspection.
Support in drafting of the replies to the correspondence and keeping Liaison with ESI Department.
- Support in drafting of reply to the different notices such as C-18, Order under section 45-A, C-19, CP-2, CP-23, CP-24 etc. received from the ESI Department.
- Provide support and guidance for compliance to the actions for notices such as D-18, Order under section 85(B), D-19 & Recovery of dues etc.
- Provide support in drafting the replies to the Show cause notice under section 84-85.
- Provide professional expertise guidance in any other notice/correspondence received under different provisions of the ESI Act.
Provide complete guidance with regard to any amendment/changes which take place in the Act.