ESI Registration

 

ESI Registration

Employee's State Insurance (ESI) is a self-financing social and health insurance scheme for Indian employees. This fund is managed by the ESI Corporation (ESI) in accordance to rules and regulations stipulated therein the ESI Act 1948. ESIC stands for ‘Employees State Insurance Corporation’. The Scheme is administered by a corporate autonomous entire body which has members representing the employers, employees, the Central Government, The State Government, Medical Professional and the Parliament. ESIC registration offers financial and medical advantages to Employees in a case of sickness, maternity, and employment injury and to make provisions for relevant issues.

Any factory or company or establishment is having 20 or more than ten staff, irrespective of salary, has to register with ESIC. Entrepreneurs need to make ESI contributions for all staff getting a salary of less than Rs.15, 000 per month. Employees with less than Rs.15, 000 monthly wages get health and sickness advantages by this statutory scheme. In this scheme, employer’s contribution is 4.75% and a worker need to contribute 1.75% for ESI. An organization having all the staff monthly wages of more than Rs.15, 000, then the organization would have to file an NIL return. Following industries are essential to get coverage under ESIC.

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WHAT YOU NEED TO KNOW
ESI Contribution

ESI contributions should be created by the employer for all staff having a salary of less than Rs.15, 000 per month. The employer should contribute 4.75% and employee should contribute 1.75% of the wages for ESI.

Continued Compliance

Organizations under ESI coverage should file annual return showing the modifications if any during the preceding financial year. Return of contributions enclosing copy of all ESI contributions paid must be submitted once every six months.