Employee's State Insurance in India
Employee's State Insurance is a scheme in India to have integrated social security scheme to provide social protection to employees in the organized sector.ESI scheme is administered by 'Employee State Insurance Corporation'(ESIC). ESI is applicable for all the employees earning wages INR 21000 or less, Employee's state insurance scheme is customized to provide medical facilities to insured person and their dependants.
Its employer responsibility to get his manufactured unit registered under the ESI within 15 days. The Sub Regional office will allot a specific code number. This number is very specific to the employer and has to be used in all the communication with ESIC. Employee state Insurance specifies the contribution of employee 1.75% and employer's 4.75% total 6.50%. eStartIndia has good expertise in registering the ESI scheme for any factory.
ESI is applicable to non seasonal factories employing more than ten employees. ESI is applicable to all states of India except Manipur, Sikkim, Arunachal Pradesh and Mizoram
ESI is an initiative of Ministry of Labour and Employment to provide the medical benefits to employees and their family. ESI is applicable to an entity when number of employees is 10 or more. ESI is applicable to those employees whose salary is less than Rs 21,000. 1.75% is contributed from employees and 4.75% is contributed from employer on the salary (Basic plus allowances).
Benefits of ESI Registration
These are the following benefits offered to the employees registered under ESI:
- 70% of Salary in paid in case of sickness benefit where maximum period is 91 days in a year.
- Related medical benefits to the family
- Maternity benefit to women employees for three months
- In event of death of an employee caused by any occupational hazard, ESIC will pay 90% of salary to the dependents of employee.
- In case of disability 90% of salary is paid to the employee
Documents Required for ESI Registration
Following documents are required for ESI registration:
- Proof of Registration of the entity
- MoA-AoA, Partnership Deed and other applicable documents
- List of employees with their salary detail
- Director, Partner, Proprietors detail as applicable
- PAN and Address Proof of Business
- Bank Statement
Following documents required for ESI return:
- Attendance Register/Sheet
- Salary Detail
- Monthly challans and returns