What is Employee’s State Insurance?

Employees State Insurance (ESI) is a self-financing social security and health insurance scheme for Indian workers earning upto 21000/- per month. This fund is managed by the Employees’ State Insurance Corporation (ESIC) according to rules and regulations stipulated there in the ESI Act 1948. Any establishment employing 10 or more employees in a shop, factory, office etc can obtain ESI registration.

Business Entities covered by ESI

• Shops
• Cinemas
• Newspaper Establishments ( Not covered under factory Act)
• Road Motor Transport Establishment
• Private Education Institution
• Restaurants or hotels engaged in Trading

Benefits of ESI registration

• Sickness benefits at the rate of 70% (in the form of salary), in case of any certified illness certified and which lasts for a maximum of 91 days in any year
• Medical Benefits to an employee and his family members
• Maternity Benefit to the women who are pregnant (paid leaves)
• If the death of the employee happens while on work – 90% of salary is given to his dependents every month after the death of the employee
• Same as above in case of disability of the employee
• Funeral expenses
• Old age care medical expenses

Documents required for filing and obtaining ESI registration

• Copy of PAN Card of Establishment (i.e. PAN of Proprietor/LLP/Company).
• Address proof of the Establishment
• Details of Directors / Partners/Proprietor along with their address proof
• Digital Signature of the Proprietor / Director / Partner
• Ownership Proof like property sale deed
• Registration Certificate of the Establishment (like sale deed, Certificate of Incorporation of Company etc)
• Current list of employees with their details.

Taxcellent helps you in obtaining ESI registration and also assist you in post registration compliances.