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ESI Return & Filing

ESI stands for Employee State Insurance managed by the Employee State Insurance Corporation which is an autonomous body created by the law under the Ministry of Labour and Employment, Government of India.

ESI registration is mandatory once a company or any other entity employs 10 or more low-earning employees. According to the Act, any employee earning less than Rs. 15,000 per month needs to contribute 1.75% of his/her pay towards the ESI, while 4.75% will be contributed towards his/her ESI by the company. The ESI scheme provides tremendous benefits to the employees, and has a large network of dispensaries, and hospitals throughout the country for facilitating fast and efficient medical care.

What are the benefits of ESIC registration?

The benefits of registering under this scheme are as follows:

  1. Medical Benefits: Medical Care for self and family from day one of entering into insurable employment
  2. Sickness Benefits: 70% of average daily wages in cash during medical leave, upto 91 days in two consecutive benefit periods
  3. Maternity Benefits: 100% of average daily wages in cash up to 26 weeks in confinement and 6 week in case of miscarriage, during maternity leave and 12 weeks for commissioning mother and adopting mother.
  4. Disablement Benefits: continuous monthly payment till injury lasts for temporary disablement and for whole life for permanent disablement.
  5. Dependants’ Benefits: monthly payment apportioned among dependants in case of death due to employment injury.
  6. Unemployment Allowance: monthly cash allowance for a duration of maximum 24 months in case of involuntary loss of employment or permanent invalidity due to non-employment injury.

Entities covered under ESIC

As per the government notification dated Sec 1(5) of the ESI Act the following entities are covered:

  1. Shops
  2. Restaurants or Hotels only engaged in sales.
  3. Cinemas
  4. Road Motor Transport Establishments;
  5. Newspaper establishments (which is not covered under the factory act)
  6. Private Educational Institutions

 

What are the documents required for ESIC Registration

The documents required for the registration are –

  1. A registration certificate obtained either under the:
    1. Factories Act
    2. Shops and Establishment Act
  2. Certificate of Registration in case of Company, and Partnership deed in case of a Partnership
  3. Memorandum of Association and Articles of Association of the Company
  4. A list of all the employees working in the Establishment
  5. PAN Card of the Business Entity as well as all the Employees working under the entity
  6. The compensation details of all the employees
  7. A cancelled cheque of the Bank Account of the Company
  8. List of Directors of the Company
  9. List of the Shareholders of the Company
  10. Register containing the attendance of the employees

After collecting all the above-mentioned documents the following procedure is to be followed for the registration of the ESI:

  1. Form No – 1 (Employers Registration Form) is to be downloaded and filled.
  2. After downloading the PDF version of the form and filling it, it has to be submitted on the ESIC website

Steps involved for ESI Registration

  1. Once the documents are ready, the company can apply for registration by submitting the Employer’s Registration Form (Form-1).
  2. A PDF format of the form is available on the website. Fill in the form and submit it to ESIC for registration on the official website.
  3. Once verified, a registration number, a 17-digit unique identity will be provided to the organization. The ESI filings can be done once you receive the 17-digit number.
  4. Employees registered under the scheme get an ESI card after submitting a form with photographs and details of family members.
  5. Although the registration is permanent, and the number is valid for the lifetime of the company, any new changes, such as employee additions, need to be intimated to the ESI.

Documents for ESI Returns

The following documents must be maintained regularly for filing ESI returns.
1. Attendance register
2. Register for Form 6
3. Register of wages
4. Register of any accidents on the premises
5. Inspection book
6. Monthly challans and returns submitted for ESI

How can SattvaCFO help us?

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