ESI Registration in India
The Employee State Insurance (ESI) scheme is a social security program in India that provides medical and cash benefits to employees in case of sickness, maternity, disablement, or death. The scheme is managed by the Employee State Insurance Corporation (ESIC), an autonomous body under the Ministry of Labour and Employment, Government of India.
Eligibility Criteria
To be eligible for ESI registration, an establishment must have:
- More than 10 employees (in some states, it is 20 employees).
- Maximum basic wages/salary of Rs. 21,000 per month (Rs. 25,000 per month in the case of persons with disability).
ESI Registration in India – 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 the 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.
Compliance Forms
The following forms are required for ESI compliance:
| Form | Description |
|---|---|
| Form 01(A) | Form of Annual Information |
| Form 1 | Declaration Form |
| Form 2 | Addition/Deletion in Family Declaration |
| Form 3 | Return of Declaration Form |
| Form 6 | Register of Employees |
| Form 9 | Claim for Sickness/Temporary Disablement Benefit/Maternity Benefit |
| Form 11 | Accident Book |
| Form 12 | Accident Report |
| Form 12A | Claim for Maternity Benefit for Sickness |
| Form 13 | Claim for Sickness or Temporary Disablement or Maternity Benefit |
| Form 14 | Claim for Permanent Disablement Benefit |
| Form 15 | Claim for Dependent Benefit |
| Form 16 | Claim for Periodical Payment of Dependent Benefits |
| Form 19 | Claim for Maternity Benefit and Notice of Work |
| Form 20 | Claim for Maternity Benefit by a Nominee |
| Form 21 | Maternity Benefit – Certificate of Expected Confinement |
| Form 22 | Funeral Expense Claim |
| Form 23 | Life Certificate for Permanent Disablement Benefit |
| Form 24 | Declaration and Certificate of Dependent’s Benefits |
General FAQ – ESI Registration in India:
For Whom it is Applicable?
A. Establishments having 10 or more employees in the case of:
-
-
- Shops
- Hotels or Restaurants
- Cinemas
- Roadside motor transport establishments
- Newspaper establishments
- Private schools and medical establishments
-
B. In other cases, if the number of employees employed is 20 or more.
Steps for ESI Registration in India:
- Step 1: Filing Form – 1 & Form – 3 application within 15 days from the applicability of the Act.
- Step 2: Obtaining a code after successful registration.
- Step 3: At the time of joining the insurable employment, employees are required to fill in a Declaration Form (Form 1) 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: The employee will be allotted a number for identification.
- Step 5: The employee will obtain a temporary ID card for 3 months after that a permanent card.
What are the Compliance Requirements?
Employers covered under ESI registration in India act have to comply with various requirements such as depositing monthly contributions, filing half-yearly returns, and reporting any changes in business activity, address, ownership, and management to ESIC authorities. Maintenance of registers and records is also mandatory.
What is the Time Limit for ESI Payment?
Contributions must be paid for an employee to a bank duly authorized by the Corporation within 21 days of the last day of the month in which the contribution is due. Late payment will result in interest charges.
What is the Mode of Payment?
Employers need to file monthly contributions online through the ESIC portal for all employees after registering them. The contribution amount is calculated based on the number of days for which wages are paid and the amount of wages paid to each employee. Payments can be made online through SBI internet banking or in any branch of SBI via cash, cheque, or demand draft generated through ESIC portals.
What if an Employee Dies?
In the case of an employee’s death, the amount of benefit is given as a monthly pension to dependents for every 6 months.
Due Dates for ESI:
- Payments: 15th of every month
- Returns: May 11th and November 11th.
Sickness Benefit:
Sickness benefit is paid for the period of absence due to medical reasons, confirmed by the Authorized Medical Officer, for a maximum of 91 days in two consecutive benefit periods (one year) at 70% of the standard benefit rate, subject to payment of contribution for not less than 78 days in the corresponding contribution periods.