Structured Biiz

Employees’ State Insurance Corporation Registration

The Employees’ State Insurance Scheme has been launched by the Government of India to provide financial cover to employees in case of any mishaps taking place during the course of their employment. It covers permanent or temporary disablement, sickness, death, injury or any other occupational disease that may lead to loss of income or loss of the ability to earn. The scheme financially insures the workers as well as their dependents and also provides a variety of cash benefits. The scheme also covers maternity benefits to the beneficiaries. The Scheme also provides a regular pension income to the family of the insured worker in case of death or any similar occupational hazards.

Employees’ State Insurance Act, 1948

The provision of this scheme is governed under the Employees’ State Insurance Act, 1948. The Act requires that the labourers working in factories, business establishments, organisations such as hotels, road transport, cinemas, newspaper, educational or medical institutions, shops, etc are medically insured from any unfortunate eventualities that take place at their work place. The Act aims at respecting human dignity during crises by protecting them from destitution, deprivation and social degradation.

While the implementation of the Employees’ State Insurance Act, 1948 started only with Kanpur and Delhi, the Scheme currently finds its place in more than 34 states and Union Territories of the country with a combined coverage of nearly 12 lakh factories and business establishments. Presently, the scheme benefits more than 3 crore workers or family units comprising of more than 13 crore beneficiaries.

Eligibility

The factories or business establishments which are required to provide social security benefits  under the Employees’ State Insurance Scheme are the ones where the following conditions are satisfied:

(1) Overtime wages are excluded in the scheme while calculating the monthly wages of the worker or employee to be eligible for ESI benefits.

Where a business establishment or organisation fulfils the above conditions, it is required to get itself registered with the Employees’ State Insurance Corporation.

Requirements

In case of business establishments or organizations which are registered with the Employees’ State Insurance Corporation, the following contributions are required to be made towards the Employees’ State Insurance Scheme:

(The aforesaid limits are revised from time to time)(2)

(2) The time limit to pay the contribution is 21 days from the last day of the month to which the salary pertains. An interest of 12% is charged per annum for each day of non-payment of the workers or employees contribution. It may also attract penalty as per the prescribed amount.

Exception – The workers whose daily average wage is up to INR 50 are exempted from contributing to the Scheme. However, employers have to continue to contribute their share towards the Scheme.

Records required to be maintained under the Employees’ State Insurance Scheme

Other Compliance Requirements

Declaration of change

Intimate any changes in the information related to the employees to Employees’ State Insurance Corporation within 10 days of such change.

Monthly Compliance

Employer organizations registered with the Employees’ State Insurance Corporation is required to file the details of their monthly contributions on the ESIC web portal every month. The due date of furnishing these details is 15th of the next month.

Return of Contribution

These returns are required to be filed half-yearly. The return for the period April to September is due by 12 November, and October to March is due by 12 May.

Services Offered

ESIC Registration - For less than 40 Employees - Rs. 7,999/-

Inclusive of GST

ESIC Registration - For more than 40 Employees - Rs. 14,999/-

Inclusive of GST

Other Services Offered