ESI Registration

What is Employee State Insurance Corporation

Employee State Insurance Corporation or ESIC is a self-financing social security and health insurance scheme which provides medical benefit, sickness benefit, maternity benefit, disablement benefit and various other benefits such as funeral expenses, free supply of physical aids etc. to the employees and their family.

Units or Establishments that have 10 or more employees, drawing the wages of up to Rs.15,000 a month are required to be registered for ESIC under the ESI Act 1948. The benefits provided by the scheme are funded from the contributions raised from covered employees and their employers at the fixed percentage of wages. At present, covered employees contribute 1.75% of the wages to the ESIC and covered employers contribute 4.75% of the wages, payable to their employees. The state government also contribute 1/8th share cost of medical benefit. ESI Registration is done through Maheswari Consultancy.

All Establishments and Factories employing more than 10 employees are required to mandatorily apply for ESI registration within 15 days of the ESI Act, 1948 becoming applicable to them. ESI Registration can be done through Maheswari Consultancy in Delhi NCR, Mumbai, Bengaluru, Chennai and other Indian cities.

Choose ESI Registration because :
  • Provides complete medical care to employees
  • Includes employee’s dependants also
  • Mandatory for units with >10 employees
What is included in Our ESI Package
ESI Consultation
Employer Registration
Employee Registration
Documentation
ESI Registration Procedure
Complete a simple Form
You need to fill our simple ESI registration questionnaire and submit documents.
  • Start
Verification
After submitting your ESI registration documents, details provided by you will be verified.
  • 12 Working Days
Submittiong application forms
There are different application forms to be filled and submitted. We will fill the these forms using the information provided by you.
  • 2 Working Days
Your work is completed
Once your ESI Registration is complete, we shall send you the 17-digit identification Code Number, Employee Insurance Number and Temporary Identity Card.
  • Congratulations

Documents Required For ESI Registration

To be Submitted by Employer :
  • Registration Certificate or Licence issued under Shops and Establishment Acts or Factories Act.
  • Address Proof: Latest Rent receipt of the premises you are occupying indicating the capacity in which the premises are occupied, if applicable.
  • Latest building Tax/Property Tax receipt (Photocopy).
  • Memorandum and Articles of Association/Partnership Deed/Trust Deed depending on the entity that is applying for registration.
  • Photocopy of certificate of Commencement of production and/or Registration No. of CST/ST (or GST once it becomes applicable).
  • Copy of PAN Card
  • Evidence in support of the date of commencement of production/business/first sale (e.g. Copy of First Invoice).
  • Month wise employment position, salary etc.
  • Copy of bank statement

To be Submitted by Employees :
  • Family photo in duplicate.
Advantages of ESI Registration
  • It provides complete medical benefits
  • It includes dependants
  • It can be used at different ESI dispensaries and hospitals
  • Any payments made will be reimbursed
  • It takes the needs of the disabled into account
  • Access to Medical care in ESI Dispensaries/Hospitals
Applicability of ESIC Registration

The following establishments employing 10 or more persons attracts ESI coverage :

  • Shops
  • Hotels or restaurants not having any manufacturing activity, but only providing service.
  • Cinemas
  • Roadside Motor Transport Establishments
  • News paper establishments
  • Private Educational Institutions and Medical Institutions

In some states the minimum employees required for coverage is for 20 or more. A few State Governments have not extended scheme to include Medical & Educational Institutions.

What is ESI Registration
It is a vast social security scheme designed to accomplish the task of providing social protection to the ’employees’ in the organised sector against the uncertain events of sickness, maternity, disablement and death due to injury sustained in the course of employment and to provide medical care to the insured employees and their dependents.
The scheme provides complete medical care to the employees registered under the scheme during the period of incapacity for recuperation of health and working capacity. It provides monetary assistance to compensate for the loss of wages during the period of absence from work due to sickness, maternity and employment injury. The scheme provides medical care to the employees’ dependents also.
All Establishments and Factories employing more than 10 employees are required to mandatorily apply for ESI registration within 15 days of the ESI Act, 1948 becoming applicable to them.
Concerns Related to ESIC Registration

The ESI scheme is a self-financing scheme from the contributions. The ESI funds are primarily built out of contribution from employers and employees monthly at a fixed percentage of wages paid. The State Governments also contributes 1/8th share of the cost of Medical Benefit.

The following establishments employing 10 or more persons attracts ESI coverage :
  • Shops
  • Hotels or restaurants not having any manufacturing activity, but only providing service
  • Cinemas
  • Roadside Motor Transport Establishments
  • News paper establishments
  • Private Educational Institutions and Medical Institutions

In some states the minimum employees required for coverage is for 20 or more. A few State Governments have not extended scheme to include Medical & Educational Institutions.

Any sum deducted from wages under the ESI Act will be deemed to have been entrusted to the employer by the employee for the purpose of paying the contribution for which it was deducted. Non-payment or delayed payment of the Employee’s contribution after being deducted from the wages of the employee amounts to ‘ Breach of trust’ and is a criminal offence punishable under Section 406 of IPC.

In some states the minimum employees required for coverage is for 20 or more. A few State Governments have not extended scheme to include Medical & Educational Institutions.

Steps for ESIC Registration
Step 1 (Getting ESI Registration)
Establishmentsor Factoriesmust get themselves registered within 15 days of the Act becoming applicable to them by submitting an Employer’s Registration Form (Form-01) to the relevant Regional Office.
Step 2 (Obtaining Code Number)
A 17-digit identification number called the Code number will be provided which must be used in all Correspondence relating to the Scheme. Form 3 (Return on Declaration) must also be submitted along with Form 1.
Step 3 (For Employees)
At the time of joining the insurable employment, employees are required to fill in aDeclaration Form (Form1) and submit two copies of a family photo to the employer, which must be submitted to the relevant ESI Branch Office by his employer.
Step 4 (Insurance Number)
The employee will then be allotted an insurance number for the purpose of his identification under the scheme.
Step 5 (Temporary Identity Card)
The employees will also be issued a temporary identity card for availing medical benefit for him/herself and his/her family for a duration of three months.
Step 6 (Permanent Photo Identity Card)
Thereafter, he will be provided with a permanent photo identity card. A person once registered need not register again when there is a change of employment. The same registration can be transferred from one employment to another.
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Frequently Asked Questions

An employer shall apply for FORM 01 within 15 days after the act becomes applicable to a unit or establishment.

Yes, it is mandatory requirement for every employer who comes under this act to register their Factory/ Establishment.

Every employer covered under this act has to comply with various compliances such as deposit of monthly contribution, in order to file half yearly return and report to ESIC authorities if there is any change in business activity, address, ownership and the management, maintenance of registers and records etc.

No, right to receive any benefits under this act is not transferable.

Maheswari Consultancy provides ESI application services across India in all cities. We have done ESI registration in Mumbai, Delhi, Gurgaon, Noida, Bangalore, Chennai, Hyderabad, Ahmedabad, Kolkata, Surat, Pune, Jaipur, Lucknow, Kanpur, Nagpur and other Indian cities.

Maheswari Consultancy.com is one of the best online service portals to help factories and establishments toget ESI registration in India. We have 10 years of experience in application of ESI Registration. Maheswari Consultancy has 30+ regional offices in India and expand its network in India with 2000+ customers for ESI Registration.

Yes, it is the statutory responsibility of the employer register their Factory/ Establishment under the ESI Act within 15 days from the date when the act becomes applicable to them.

It is a 17-digit unique identification number allotted to every registered establishment. This number is generated through the ESIC portal on submission of the required information by the employer or generated on receipt of a survey report from the Social Security Officer.

Once a factory or an Establishment is covered under the Act, it continues to be covered despite the fact that the number of covered employees employed at any time falls below the required limit or there is a change in the manufacturing activity.

If an employee’s wages (excluding remuneration for overtime) exceeds the wage limit prescribed by the Central Government after beginning of the contribution period, he continues to be an employee till the end of that contribution period and therefore contribution is to be deducted and paid on the total wages earned by him.

No. Overtime is not included for calculating the wage ceiling limit for coverage of an employee. But, it is included for payment of contribution to cover the risk during the period of overtime work, and to enable receiving cash benefits at an enhanced rate also.

Contribution will be paid for an employee in to a bank duly authorised by the Corporation within 21 days of the last day of the month in which the contribution is due for any wage period.

The employer needs to file monthly contributions online through ESIC portal in respect of all its employees after registering them. The amount of contributions to be paid are to be calculated by keeping a record of, employee wise, number of days for which wages are paid & the amount of wages paid respectively to calculate the amount of contributions payable. The total amount of contribution (including the shares of the employees and employers) in respect of all the employees for each month must be deposited in any branch of SBI in cash or by cheque or demand draft on generation of such a challan through ESIC portals. Contributions can be paid online through SBI internet banking too.

An employer who doesn’t pay the contribution within the time limit, will be liable to pay simple interest at the rate of 12% per annum for each day of default or delay in payment of contribution.

In addition to the Muster roll, wage record and books of Account maintained under other laws, the employer is required to maintain the following records for ESI:-
  • Accident Register in Form-11
  • An inspection book.
  • The immediate employer is also required to maintain the Employee’s Register for the employees deployed to the principal employer.

These are the following reports to be submitted by the employer :
  • Reports: Accident report in Form 12 in case any accident takes place, to the notice of the Accident.
  • Absence verification report such as Employee Records including attendance, wages and books of accounts.

Registration is the process of recording information about the entry of an employee into insured employment, under the Act.

Registration of employee is the necessary to identify the employee and to provide such employee the benefits under the Act which are related to the contributions paid by the employer on behalf of each of the insured persons.

On registration under the scheme the employer can give a temporary identity certificate, affix employee’s photo and authenticate it for use which is valid for a period of 3 months. This identity card functions as an identification both for claiming medical benefit at dispensary/ hospital and claiming cash benefits at the ESI branch Office.

The scale of medical benefit includes a complete medical treatment from start to finish.

No. There are no qualifying conditions or contributory conditions attached for claiming disablement or Dependants benefit. Even if he meets with an employment related injury on the very first day or on any day before he completes his first contribution period, the benefit can be claimed.

  • Dependent are also entitled to full medical care as and when needed, to artificial limbs, artificial appliances etc. as a part of medical treatment.
  • The medical benefit is also admissible to the dependents during the period the employee is claiming unemployment allowance. If he dies during this period, his family continues to receive the medical benefit till the completion of those twelve months.
  • Reimbursement of expenditure incurred on the funeral of the deceased employee.
  • In case of the death of the insured employee due to employment injury, the widow, widowed mother and children are entitled to Dependants’ benefit.
  • Any benefit due to the insured employee at the time of death is paid to the nominee.

So long as the establishment employs a minimum prescribed number of persons it will continue to be covered under the Act whether these employees are employed at one place or at places separate from each other, as they are engaged in the organised activity of the same establishment. Thus, all the persons including those working in branches, registered. office, and sales office etc. irrespective of location are to be counted.

  • Principal Employer is :
    • Owner
    • Occupier
    • Managing Agent of the owner or occupier
    • Legal representatives on the behalf of a deceased owner or occupier
    • Manager of a factory.
    • In the case of Establishments belonging to or under the control of Government of India
  • The Authority Specified
  • The Head of the Department (In the absence of a specified Authority).
In the case of other establishments: Person responsible for the supervision and control of the establishment.

Immediate Employer can be any or all of those enumerated below :
  • One who executes any work inside the premises of the principal employer of a factory or an establishment.
  • One who executes the work in a factory or establishment outside the premises supervised by the principal employer or his agent.
  • One who gives on hire the services of his own employees to the principal employer of a factory or establishment.
  • A Contractor

Any person employed for wages in or in connection with a factory or establishment, and:
  • A. Directly employed by the Principal employer, in a Factory or establishment within the premises or elsewhere, or in any part, department or branch of the factory or establishment.
  • B. Employees of the immediate employer:
    • Being employed in the premises on any work of the factory or establishment
    • Being employed outside the premises on the work in a factory or establishment outside the premises supervised by the principal employer or his agent.
    • Employees lent or let on hire to the principal employer on any work of the factory.
    • Paid Directors of a company.
  • But the following are Excluded :
    • An Apprentice
    • An employee receiving wages above the ceiling limit for coverage prescribed by the Central Government.
    • Member of the Indian Armed Forces

The financial year from April to March has been divided in to two six monthly contribution periods i.e. 1st April to 30th September and 1st October to 31st March of the next year. The relevant period of benefit corresponding to each period of contribution commences three months after the end of the that contribution period i.e. Jan to June and July to December (The calendar year has been divided in to two six monthly benefits periods).

If an e-The scale of medical benefit includes a complete medical treatment from start to finish. mployee requires medical treatment and is absent from work for medical reasons, Sickness benefit is paid for the period of absence after it is confirmed by the Authorised Medical Officer, for a period not more than 91 days in two consecutive benefit periods (say one year) @ 70% of standard benefit rate, subject to payment of contribution for not less than 78 days in the corresponding contribution periods.

Disablement is a condition resulting from employment injury, which may render the employee temporarily incapable of doing his work and necessitate medical treatment (temporary disablement). It may reduce his earning capacity (permanent partial disability) or it may completely deprive the employee of his ability of doing any work (permanent total disability).

It is a personal injury to an employee caused by an accident or an occupational disease arising out of and in the course of his employment within or outside India.

Dependants’ benefit is a monthly pension paid to the dependants of an employee who dies as a result of an employment related injury or occupational disease.

Maternity benefit is cyclical payments to an insured female employee for specified period of absence from work, due to confinement, miscarriage or sickness out of pregnancy, premature birth of child or miscarriage or confinement. The amount of maternity benefit is equal to the standard benefit rate.

A lump sum amount not more than Rs.10000/- appropriated towards expenditure on the funeral of a deceased employee, is paid either to the eldest surviving member of the family or if he is without family or not living with his family at the time of death, then to the person who actually performs the funeral of the deceased employee.

Means average daily wages calculated by dividing the total wages paid during the contribution period by the number of day for which these wages were paid.
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