PF / ESI Registration

The employee state insurance (ESI) is managed and regulated by the Employee State Insurance Corporation which is an autonomous body under the Ministry of Labour and Employment, Government of India. The ESI scheme was started for the Indian Employees that provided monetary, medical, and other benefits from the employer to the employee.
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PF / ESI Registration

The Employees’ Provident Fund (EPF) is a savings scheme introduced under Employees’ Provident Fund and Miscellaneous Act, 1952. It is managed by the central board of trustees consisting of the government, employer and employees; it is assisted by The Employees’ Provident Fund Organization. EPFO works under the direct jurisdiction of the government and is managed through the Ministry of Labour and Employment.ESIC stands for Employee State Insurance Corporation is an autonomous body created by law and is under the control of the Ministry of Labour and Employment, Government of India. It regulates the ESI scheme as per ESI Act of 1948. ESI scheme is set to cater the health and insurance needs of the employees and is funded by the employees and the employer.

ESI Registration

Employee State Insurance or ESI is a scheme commenced by the Government of India to offer medical, monetary, and other advantages to workers. ESI is managed by an autonomous authority – Employee State Insurance Corporation – which lies under the jurisdiction of the Ministry of Labour and Employment.By law, any company that has more than 10 employees mandatorily needs to have ESI. In some states, the number of employees is 20. For employees earning more than ₹21,000 per month, including basic salaries and dearness allowance, the insurance is deducted from their pay.Also, taxpayers with a turnover of less than ₹1.5 crore can opt for the composition scheme to get rid of tedious GST formalities and pay GST at a fixed rate of turnover.

Benefits of ESI Registration

ESI Registration ensures that employees enjoy the following advantages:

Medical Aid
From the very first day of employment, registered ESI members and their families are entitled to enjoy the benefits of complete medical care and insurance.

Maternity Aid
Pregnant women are entitled to maternity benefits that are payable upto twenty-six weeks. This period can be extended by 30 days on medical advice. To qualify for maternity benefits, employers are required to contribute their wages for 70 days in the preceding two contributions periods.

Disablement Benefits
Disabled employees can get 90% of their monthly salaries as disablement benefits.

Sickness Benefits
Absence from work during illness can be taken for a maximum of 91 days per year along with 70% of the monthly wages.

Dependent Benefits
In the unfortunate event of the demise of an employee during the employment, the dependents of the deceased will receive 90% of his/her monthly salary.

Funeral Expenses
The family of the deceased employee is entitled to an additional amount of Rs.10,000 towards funeral expenses.

Confinement Expenses
In the case of confinement of an insured woman or wife of an employee occurring in a place with no medical facilities under the ESI scheme, confinement expenses can be availed.

In addition, some of the need-based benefits:

Vocational Rehabilitation
Permanently physically challenged, insured employees are entitled to undergo vocational rehabilitation training at VRS.

Physical Rehabilitation
Available to employees in the case of physical disablement due to an employment injury or occupational hazards.

Old Age Medical Care
An annual payment of ₹120 ensures medical care benefits for retiring ESI employees or for those who are opting for VRS/ERS.

Extended Sickness Benefits
ESI members suffering from chronic diseases can avail the extended sickness benefit for upto 2 years, once the standard sick leave of 91 days has expired.

Enhanced Sickness Benefit
Registered ESI members willing to undergo the sterilisation procedures are eligible for enhanced sickness benefits of 100% of their daily average wages. This benefit also allows a recuperating period of 7 days for vasectomy and 14 days for tubectomy from the date of surgery or admission in the hospital.

Documents Required

To register for ESI the employer has to submit the following documents along with the application:

    • The registration certificate or license issued by – Shops and Establishments Acts/Factories Act
    • Address proof
    • Rent receipt of the occupied premises, mentioning its capacity
    • Copy of PAN card
    • Copy of bank statement
    • Photocopy of the last building tax/property tax receipt
    • Memorandum and Articles of Association or Partnership Deed or Trust Deed – depending on the applying entity
    • Photocopy of registration
    • Certificate of commencement of production
    • Registration No. of CST/ST/GST

 

Note: For ESI filings, a monthly pay sheet is required for computing the contribution amount for each employee.

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