ESI Return Filing

What is 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.

Currently any factor or employment or any establishment that has employed over 10 employees with a minimum salary of Rs. 21,000 has to mandatorily register itself with the ESIC.

Medical Aid

From the very first day of employment, the registered ESI members and the family members enjoy the benefits of complete medical care and insurance. Retired members and permanently disabled insured persons and their spouses can also avail medical care on payment of an annual premium of Rs.120.

Maternity benefit

Pregnant women can avail of maternity benefits that are payable up to twenty-six weeks. This maternity leave period can be extended on medical advice by 30 days at the rate of full wage subject to contribution for 70 days in the preceding year.

Disablement benefit

From the day of the employees irrespective of having done any contribution, 90% of the wage is payable as long as the temporary disability continues. Permanent disablement benefit is payable at 90% of the wage as a monthly payment.

Sickness benefits

Absent at work due to illness is allowed for a maximum of 91 days per year along with 70% of the monthly wages.

Dependent benefits

In case of the sudden demise of an employee during the employment, the dependents of the deceased employee will receive 90% of his or her monthly salary.

Funeral expenses

The family members of the deceased employees are entitled to an additional amount of Rs.10,000 for the funeral expenses.

Confinement expenses

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

To be eligible for ESI registration is to have more than 10 workers. In some regions, ESI registration is possible for establishments only if there are more than 20 employees. Here are some other criteria that need to be satisfied for obtaining ESI registration.

• An employee whose gross salary is up to Rs. 21,000 per month can avail of this with the help of the employer.
• The establishment is registered with the EPFO.
• The total contribution to ESI is 6.5% of the gross salary and it can be further divided as:
  • 4.75% by the employer
  • 1.75% of the employee
• For industrial units where there are chances of occurrence of injury or health issues all the employees with a salary less than Rs.21,000 compulsorily need to get ESI registration.

For obtaining ESI registration in India here is the list of documents that is to be submitted by the employer along with the application:

• Registration Certificate of the Shops and Establishment Acts.
• Factories Act
• Address proof of Principal place of business
• Copy of PAN Card