{"id":1826,"date":"2021-02-01T11:26:53","date_gmt":"2021-02-01T11:26:53","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=1826"},"modified":"2021-02-02T10:30:54","modified_gmt":"2021-02-02T10:30:54","slug":"need-for-esic-registration","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/need-for-esic-registration\/","title":{"rendered":"Who is Eligible &#038; Why there is a Need for ESIC Registration?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">ESI stands for Employee State Insurance which is governed by the Employee State Insurance Act 1948 and 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. The ESI is implemented to look after the Indian workers and provide them with the medical, monetary and other benefits from the employer<strong><em>. <\/em><\/strong>ESI registration is important once a company or any other entity employs 10 or more than 10 employees earning less than 21,000 per month. This article will discuss about who is eligible &amp; why there is a need for <strong><a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/esic-registration\">ESIC registration in India<\/a><\/strong>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4dc64a2ab1d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4dc64a2ab1d\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/need-for-esic-registration\/#What_is_ESI_Scheme_Need_for_ESI_Registration\" title=\"What is ESI Scheme? \/ Need for ESI Registration \">What is ESI Scheme? \/ Need for ESI Registration <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/need-for-esic-registration\/#What_are_the_benefits_of_ESIC_Registration\" title=\"What are the benefits of ESIC Registration? \">What are the benefits of ESIC Registration? <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/need-for-esic-registration\/#Who_is_eligible_to_avail_ESI_scheme\" title=\"Who is eligible to avail ESI scheme?\">Who is eligible to avail ESI scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/need-for-esic-registration\/#Entities_covered_under_ESI_Registration\" title=\"Entities covered under ESI Registration\">Entities covered under ESI Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/need-for-esic-registration\/#What_are_the_documents_required_for_ESI_Registration\" title=\"What are the documents required for ESI Registration?\">What are the documents required for ESI Registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/need-for-esic-registration\/#ESI_Registration_Procedure\" title=\"ESI Registration Procedure\">ESI Registration Procedure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/need-for-esic-registration\/#Annual_Return_to_be_filed_when_ESI_registration_is_completed\" title=\"Annual Return to be filed when ESI registration is\ncompleted\">Annual Return to be filed when ESI registration is\ncompleted<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/need-for-esic-registration\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_ESI_Scheme_Need_for_ESI_Registration\"><\/span>What is ESI Scheme? \/ Need for ESI Registration <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The main purpose for forming ESI Scheme by the government is to\nprovide the workers the health- related benefits and cover the health- related\ncontingencies such as temporary or permanent disablement, death, employment\ninjury, sickness, occupational disease, maternity etc which impacts the earning\ncapacity or results into the loss of income of the worker. This scheme helps\nthe workers to overcome the financial burden due to such unfortunate events and\nalso provides monetary and other benefits to the employees.<\/p>\n\n\n\n<p>The scheme provides for medical care protection to the workers and\ntheir dependents and also provides cash benefits during disablement or loss of\nwages. It also offers pension known as dependent benefit to the members of the\nfamily of the insured person in case of injury due to occupational hazard while\nat work or death of the person. <\/p>\n\n\n\n<p>&nbsp;Any entity having 10 or more\nthan 10 employees providing monthly wages less than 21,000\/- salary is required\nto register itself with ESIC. The <strong><em>employee\u2019s contribution rate is 0.75%\nof the wages<\/em><\/strong> and the <strong><em>employer\u2019s is 3.25% of the wages<\/em><\/strong>\npayable in respect of the employees in every wage period. The employees in\nreceipt of daily <strong><em>average wage of Rs. 137\/- are exempted<\/em><\/strong> from\npayment of contribution. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_benefits_of_ESIC_Registration\"><\/span>What are the benefits of ESIC Registration? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Some of the benefits of ESIC registration are as follows:<\/p>\n\n\n\n<ul><li>Medical benefits to the\nemployee and his family members. <\/li><li>Maternity leaves which are paid\nto the pregnant women. The beneficiary can avail 100% of the daily wages up to\n26 weeks which can be extended to further 1 month based on medical advice. And\nin case of adoption benefit it is 12 weeks and while in case of miscarriage\nbenefit is 6 weeks. &nbsp;<\/li><li>Sickness benefits, given at the\nrate of 70%. it is given when the medical certified sickness is certified and\nlast for 91 days in a year. <\/li><li>In case of disability caused\nwhile working. The nominees are given 90% of the salary until recovery and in\ncase of permanent disability, 90% of monthly wage for the entire life can be\navailed. <\/li><li>Death of the employee while\nworking, nominees are given 90% of his salary. <\/li><li>Funeral expenses. <\/li><li>Old age expenses provided to\nthe workers. <\/li><li>In case of unemployment, scheme\noffers a maximum of 50% of the average monthly wage for a period of 24 months\nin case of involuntary loss of non- employment or due to permanent invalidity\ndue to injury. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_is_eligible_to_avail_ESI_scheme\"><\/span>Who is eligible to avail ESI scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>According to <strong><em>Section 2\n(12) of the ESI Act, 1948<\/em><\/strong>, any person working in non0 seasonal factory\nwith more than 10 employees. <\/li><li>All the employees working in\nsectors such as restaurants and hotels, Road- motor undertakings, newspaper\nestablishments, preview theatres and cinemas, medical institutions and\neducational institutions with a strength of more than 20 employees. <\/li><li>The existing wage limit of the\nemployee is less than Rs. 21,000 per month and if the employee having\ndisability the wage limit for coverage is Rs. 25,000 per month. <\/li><li>In order to receive the social\nsecurity benefits of the ESI scheme the wages up to Rs 10,000 per month should\nbe drawn by the employees. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Entities_covered_under_ESI_Registration\"><\/span>Entities covered under ESI Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Many entities are eligible for registration under the Employees State Insurance Act 1948, as long as it has the required number of employees in that state. The entities covered are as follows:<\/p>\n\n\n\n<ul><li>Cinemas<\/li><li>Shops<\/li><li>Hotels and Restaurants only\nengaged in sales<\/li><li>Private Educational\nInstitutions<\/li><li>Newspaper Establishments<\/li><li>Roadside motor transport\nestablishments<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_documents_required_for_ESI_Registration\"><\/span>What are the documents required for ESI Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The documents required for the ESI registration are as follows:<\/p>\n\n\n\n<ul><li>The certificate of registration\nof ESIC obtained either under Shop and establishment Act or Factory\u2019s Act. <\/li><li>Registration Certificate in\ncase of company and partnership deed in case of <strong><a href=\"https:\/\/swaritadvisors.com\/partnership-firm-registration\" class=\"text-primary\">partnership\nfirm<\/a><\/strong> or LLP. <\/li><li>Memorandum of Association and\nArticles of Association of the company. <\/li><li>PAN Card of all the employees\nand Business PAN Card. <\/li><li>Details of compensation of all\nemployees. <\/li><li>List of employees who are\nworking in the establishment. <\/li><li>List of directors of the\ncompany.<\/li><li>List of Shareholders of the\ncompany.<\/li><li>Cancelled cheque of the bank\naccount of the company. <\/li><li>Attendance registers of the\nemployees of the company. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"ESI_Registration_Procedure\"><\/span>ESI Registration Procedure<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When the documents are collected, the below mentioned procedure is required to be followed for ESI Registration:<\/p>\n\n\n\n<ul><li>The applicant is required to\ndownload and fill Form No. 1.<\/li><li>Further on filling the form,\nthe applicant is required to submit it along with all the necessary documents\nmentioned above. <\/li><li>Once the verification of the\nform is done by the ESIC officer, the applicant shall receive a unique 17-digit\nnumber by the government. <\/li><li>The employees, whose\nregistration of this scheme is completed will give to the employer the filled\nform and the photographs of his family in order to complete the process. This\nis the part of the process from which the ESI card is provided to the\napplicant. <\/li><li>The changes for the employee\nand the company gets intimated to the ESI. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Annual_Return_to_be_filed_when_ESI_registration_is_completed\"><\/span>Annual Return to be filed when ESI registration is\ncompleted<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Once the ESI registration is completed, the ESI returns are required to be filed twice every year. The below mentioned documents are required to file the returns:<\/p>\n\n\n\n<ul><li>Register of Form- 6.<\/li><li>Attendance registers of the\nemployees.<\/li><li>Returns and Challans on monthly\nbasis.<\/li><li>Wages registration.<\/li><li>Register of the accidents\nhappened in the premises of the organization. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The ESI registration is mandatory to provide efficient health care benefits to the employees whose monthly salary is less than Rs. 21,000 and provide them with other essential benefits which are governed by the ESI Act 1948. The ESIC manages the funds as per the rules and regulations laid down by the Act. The question regarding who is eligible and why there is a need for ESIC registration has been discussed above in the article. The purpose of ESI Act is to respect the human dignity during the crises by protecting them from deprivation and social degradation.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/epf-registration\">Apply for EPF Registration in India?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>ESI stands for Employee State Insurance which is governed by the Employee State Insurance Act 1948 and 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. The ESI is implemented to look after the Indian workers and provide [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1827,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[135],"tags":[313],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1826"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=1826"}],"version-history":[{"count":5,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1826\/revisions"}],"predecessor-version":[{"id":1858,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1826\/revisions\/1858"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/1827"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=1826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=1826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=1826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}