ESI Registration Register your business in the Employee state insurance act, 1948 (ESI ACT)
What is ESI act 1948?
Employee state insurance act 1948 is a social security scheme run by government of India and currently covers more than 2 crore employees and more than 7.5 crore of their family members. Eligible employees and employers get various benefits under the ESI Act by contributing a portion of the employees’ salary towards ESI scheme.
Is Employee State Insurance Act (ESI) applicable to your business?
ESI act applies to all shops, businesses, factories as well as establishments that have 10 or more than 10 employees. If your organization normally does not employ more than 10 employees but in any particular month the employee strength was 10 or more, then also your business will covered under the ESI Act and you will be required to contribute.
Benefits of Registration under ESI
Benefits of ESI for employees.
- ESI scheme offers insurance cover for sickness, death, disability, maternity and even unemployment benefits by providing cash incentives and partial wages. The are more than 150 hospitals and more than 2000 dispensaries all over India that offer free treatment under ESI in the above-mentioned cases.
Benefits of ESI for employers
- Employers are encouraged by the government to contribute towards ESI for their employees, and in return the employers will get compensation for work related accident and disability. Therefore, employers can just focus on the betterment of their organization without worrying about some uncertainties.
Applicability & Contribution of ESI Registration
Which employees are covered under ESI act?
- For ESI act applicability, the sum of employees’ basic salary, dearness allowance and House rent allowance is considered. If this sum less than INR 21,000, then the employee will covered under ESI act and both employees and their employer need to contribute some part of the employees salary towards the ESI scheme.
What is the Employer’s contribution towards ESI?
- Employers need to contribute 4.75% of the employees’ salary (basic + DA + HRA) in the ESI scheme.
What is the Employee’s contribution towards ESI?
- Employee’s need to pay 1.75% of their salary towards ESI scheme and therefore, the total ESI contribution come to 6.5 % which is to be shared by the employees and their employers.
- However, there are some newly implemented ESI areas that have an ESI contribution rate of 4%. 3% of that is contribution by the employer and 1% is to be contributed by the employee.
What is the ESI registration process?
- All the organization that have 10 or more employees, or once had 10 or more employees in their lifetimes are mandated by law to be registered under the ESI scheme (Employee state insurance act, 1948).
- The registration needs to be done online at the ESIC portal and a 17 digit ESI number will be allotted to the organization upon the successful ESI registration.
- To register the eligible employees, their 11-digit UAN (universal account number) will be taken for further process.
Start filling this form and submit the required documents
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ESI registration involves several forms, leave that to us
Upon successful registration, claim your ESI number