What is ESI Registration?

Employee State Insurance (ESI) is a self-financing social security scheme initiated by the Government of India to provide medical and financial benefits to employees. The scheme is managed by the Employee State Insurance Corporation (ESIC) under the Ministry of Labour and Employment.

Who Needs ESI Registration?

ESI registration is mandatory for:

• Businesses with 10 or more employees (20 in some states) earning a salary of up to 21,000 per month (25,000 for persons with disabilities).
• Factories, commercial establishments, restaurants, cinemas, educational institutions, and shops meeting the employee threshold.
• Employees who fall under the ESI scheme contribute 0.75% of their wages, while the employer contributes 3.25%.

Benefits of ESI Registration

• Medical Benefits:
  Comprehensive medical care for employees and their dependents.
• Sickness Benefits:
  Employees receive 70% of their wages during medical leave.
• Maternity Benefits:
  Paid maternity leave for women employees.
• Disability Benefits:
  Financial aid for temporary or permanent disabilities.
• Dependent Benefits:
  Family pension in case of the employee’s death due to occupational hazards.
• Funeral Expenses:
  Financial assistance for funeral costs.
• Unemployment Allowance:
  Financial assistance for employees who lose their job due to closure or retrenchment.

Documents Required for ESI Registration

1. Business Registration Documents:
1. GST Certificate
2. Registration Certificate under Shops & Establishment Act or Factories Act
3. Memorandum & Articles of Association / Partnership Deed
2. Employer’s Details:
1. PAN Card
2. Address Proof
3. Employee’s Details:
1. PAN & Aadhaar Card
2. Salary details
3. Bank Account details
4. Family details & nominee information
4. Cancelled Cheque: Bank account details of the employer.
5. Digital Signature (DSC): Required for authentication.

ESI Registration Process

1. Online Application:
• Visit the ESIC portal (www.esic.gov.in) and click on 'Sign Up'.
• Fill in business and employer details to generate a user ID and password.
2. Employer Registration Form (Form-1):
• Log in with credentials and fill out Form-1 with employee and employer details.
3. Document Upload:
• Attach all required documents in scanned format.
4. Generation of Code:
• After submission, an ESI Code Number is issued for further processing.
5. Employee Enrollment:
• Employers must register employees in the ESIC system by providing their personal and job details.
6. Contribution Filing:
• Employers need to deposit ESI contributions every month before the 15th of the following month.

Compliance and Post-Registration Requirements

• Maintaining Employee Records:
  Employers must keep detailed records of employee wages and contributions.
• Monthly Contributions:
  Timely ESI contributions to avoid penalties.
• Inspection & Audits:
  Employers should comply with ESIC inspections to ensure compliance.
• ESI Return Filing:
  Filing half-yearly returns (April-September and October-March).

Penalties for Non-Compliance

• Delayed Contribution: 12% per annum interest on late payments.
• False Declaration: Can lead to fines and legal action.
• Non-Payment: May result in prosecution under the ESI Act.

Why Choose Calzone for ESI Registration?

• Hassle-Free Process:
  Our experts handle the complete registration and documentation.
• Compliance Assurance:
  We ensure timely ESI contributions and filings.
• Dedicated Support:
  Get round-the-clock assistance from our professionals.