ESI Registration

Employees’ State Insurance Corporation (ESIC), established by ESI Act, is an autonomous corporation under Ministry of Labour and Employment, Government of India. As it is a legal entity, the corporation can raise loans and take measures for discharging such loans with prior sanction of the central government and it can acquire both movable and immovable property and all incomes from the property shall vest with the corporation.The corporation can set up hospitals either independently or in collaboration with state government or other private entities, but most of the dispensaries and hospitals are run by concerned state governments.

The ESI Act

The Employees’ State Insurance (ESI) Act, 1948 stipulates the rules and regulations that govern the functioning of the Employees’ State Insurance Corporation (ESIC), which in turn manages the ESI fund. ESIC is, therefore, an autonomous statutory body, and comes under the Ministry of Labour and Employment.

Following its promulgation in 1948, the ESI Act seeks to provide social security coverage for workers in contingencies such as “sickness, maternity leave, temporary or permanent physical disablement, and death due to employment injury resulting in loss of wages or earning capacity. The Act also guarantees reasonably good medical care to workers and their immediate dependents.”

How does the ESI Act function?

Under the ESI framework, the total contribution for a subscriber is 6.5 percent, which is split between the employer at 4.75 percent and the employee at 1.75 percent. The state government’s share in the ESI contribution is 1/8th and that by the central government is 7/8th.

The government published the Employees’ State Insurance (Central) Amendment Rules, 2017 on January 20, which improve the existing maternity welfare benefits for women who have insurance. The new Rules are in addition to the ESI (Central) Amendment Rules, 2016 – notified on December 22, 2016 – that expanded the coverage of the ESI Act with effect from January 1, 2017.

The ESI (Central) Amendment Rules, 2016 allowed employees earning Rs 21,000 or less in a month to subscribe to this scheme. Prior to that, the wage limit for ESI subscribers was at Rs 15,000 per month.

The 2017 amendment rules expand the scheme further, detailing new maternity benefits for women who have insurance. The changes introduced in the ESI (Central) Amendment Rule, 2017 are important as welfare provisions under the Maternity Benefits Act, 1961 are not applicable to those factories and establishments that are registered under the Employees’ State Insurance Act, 1948.

Reasons to Register a ESI Registration

ESI
Employee’s State Insurance Corporation(ESI) is a self-financing social security and health insurance scheme for Indian workers. The scheme provides Employees with a comprehensive Social Security Scheme for protecting the employees during sickness, injury or disability.

ESI Contribution
ESI contributions must be made by the employer for all employees having a salary of less than Rs.21,000 per month. The employer must contribute 4.75% and employee must contribute 1.75% of the wages for ESI.

ESI Benefits
Employee’s State Insurance Corporation(ESI) is a self-ESI provides employees registered the scheme with a host of medical and sickness benefits. Employees registered under the scheme can avail medical facilities and are also entitled for sick pay benefits.

Continued Compliance
Organizations under ESI coverage must file annual return showing the changes if any during the preceding year. Return of contributions enclosing copy of all ESI contributions paid must be submitted once every six months.

ESI Registration
ESI Registration for Employers having more than 10 employees. The Employer must contribute 4.75% of the Employees wages towards ESI. Once, registered the organization is allotted a 17 digit unique identification code.