Employee state Insurance act, a security given by the Government of India has the account of round about 2 crore employees covering billions of families under the scheme. ESI is an insurance provided by the government to protect the employees’ from sickness, disability and ensure maternity leave to female employee.
Is Your Business Is Applicable Under The (ESI) Employee State Insurance Act?
A systematic approach towards policy seems beneficial for both employer and employee at the time of crisis. And its various advantages are genuine and practical. Any organization that has 10 or more than 10 employees is eligible for registration under ESI scheme.
The act covers the entity such as shops, hotels and restaurants not engaged in sales, road motor transport establishments, newspaper establishments, private educational institutions run by trustee, medical institution, etc. It also includes hospitals, diagnostic centers, pathological labs, charitable trusts, corporates, joint sector, nursing homes, etc.
All the private organizations are required to file for ESI registration. It’s a statutory duty of every establishment or organization to register for ESI. And they must generate their ESI registration number from the date they have been approved as Factory or Establishment.
The registration of the company or organization is done on the ESIC portal where a unique 17 digit ESI number is allotted to the organization after the completion of registration process. And for registering the employees under the ESI act, 11 digit universal account number (UAN) is generated.
Simplifying the procedures and processes of ESI registration, we lead the way for you. Thus check out the registration process.
Registration process of ESI includes:
- Filling of form by attaching the required documents.
- Verification of details and documents by our officials.
- Proceeding with the online processing of ESI registration on ESIC portal.
- And hey, congratulations! Thereafter, we provide you a unique 17 digit ESI registration number with employee insurance number and temporary identity card for employees. The ESI registration number of an organization is a permanent number as it remains entitled to the organization as long as it exists.
Following Documents that required for ESIC Registraion
Concerning the act there are certain rules and regulations which the dependent and provider of insurance must follow:
Every worker must inform the ESI registration number to their new employer while switching the job.
Having an ESI Card or e-Pehchan Card is a must requirement to avail the benefit of ESI at medical institutions and dispensaries.
As per the ESI act every entity which has employees in 10 or more in number falls under the purview of registering under the act as it’s mandatory for entities.
However, the overtime done by the worker is not included under the limit of ESI act.
An employer is expected to maintain the records of employees which range from books of accounts, income records, attendance register, accident register and inspection book to be systematic and organized under the rule mention in ESIC Act.
After registering under the act an ESIC code is generated for the beneficiary which is a 17 digit number.
This insurance cover is initiated from day one of employment, and the rule is applicable both for the insured person and the dependents. Whereas the benefit coverage can be availed only from the prescribed medical institution and in case of private medical hospitals, there are certain rules and regulations formulated regarding it.
This ESIC act applies to entities providing wages to the workers and labours whereas the Act doesn’t deal with defence, mines, railways and employees of educational institutions.
Employees And Their Family Can Avail Of ESI Benefits In These Circumstances
Sickness, death, unemployment, injury at workplace, maternity leave, temporary or permanent disablement. Herein, the employee gets the benefit in case of disability and accident at the workplace where the compensation amount is paid to them. It turns out to be of immense benefit for poor families in need, an initiative worth to be appreciated.
It also includes old age care benefits
And in case of death 90% of the salary is given to the dependent every month after the death of the employee
In case of sickness, the maximum of 70% of the salary is paid, if the illness lasts to 91 days in a year.
The benefit of ESI scheme can be availed at 150 hospitals and 2000 dispensaries of India and they are covered under the act for having free medical treatment facility.
The privileges of ESI scheme can be availed by the family members in the absence of employee or death of employee. Hence the dependent benefit prevails in ESI scheme. Dependents are also entitled to the medical benefits subject to certain terms and conditions.
The funeral expenses amount doesn’t exceed Rs. 10, 000 and is paid to the eldest member of the family.
Females can avail maternity leave which consists of absenteeism due to miscarriage, pregnancy or premature birth of the child.
The ESI covers the full medical expenses for the injury or disablement. And there is no limit associated to the medical benefits.
Employer and Employee’s Contribution for the ESI scheme:
Though, employee’s having salary of 21000 INR or less than that are covered under the ESI scheme, where both the employee and employer need to contribute for ESI. An employer must contribute 4.57% of employee salary which includes basic + DA + HRA in ESI scheme. And for the employee, the compulsory contribution is 1.75% from the salary, which is a total of 6.5%. Thus ESI is shared by both the employees and employer for ESI scheme.
But in some of revised formats the contribution of 4% is shared under the scheme, where 3% contribution is expected from the employer and rest 1 % is expected from the employee. The method of payment in case of employer’s contribution is through online ESIC portal, where the organization needs to pay for all the employees and employer both.
Employers follow the term & condition under the ESI act:
Every firm that is registered under the ESI act is required to file return twice a year where one is half yearly and other one is annually. The half yearly returns are to be filled every, November where the tenure lies from (April to September) and in May for (October to March).
Penalty for Non- fulfilling of Compliances
The penalty for not filling the annual return, failure in compliance of law or in case of failure in generating employer registration number persists. And the total of 10000/- rupees is fined to the organization.
A timely payment of ESI contribution, saves you from penalty but late payment of the one can lead to penalty of 12% interest per annum on the payable amount. Thus punctuality and on time fulfillment of duties is compulsory. Thereby we take care of the due dates and do needful for you before the time and reduce the last minute hassles.
Why are we the prior choice for ESI Registration?
With quick and prompt response we provide flexibility and feasibility of ESI registration. And from our years of experience, you are rest assured of legal formalities and details. Besides, our widespread reach of clients is the proof of our excellence, superiority and core competency. Moreover, our cost effective solutions and nurturing relationships with clients make us the best in ESI registration as we have the trained experts who can look after your concerns and doubts.
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