ESIC Registration and ESIC Return Filing
Secure your employees’ welfare with hassle-free ESIC registration and accurate ESIC return filing. Ensure compliance and avoid penalties while providing essential health benefits. Partner with experts to streamline the process and focus on growing your business—get started today!
ESIC Registration Pricing
(Businesses Having Less then 20 Employees)
- Documentation, Filing of application, Follow up and Issuance of ESIC Registration Certificate
- All India Service
- Easy Onlie Process
- 24*7 Hours Customer Support
ESIC Registration and Return Filing - Overview
In India, ensuring compliance with the Employees’ State Insurance Corporation (ESIC) is crucial for businesses with ten or more employees. This blog post will guide you through the essentials of ESIC Registration and Return Filing, highlighting their importance and the steps involved.
What is ESIC Registration?
ESIC registration is mandatory under the Employees’ State Insurance Act, 1948. It provides health and social security benefits to employees, including medical care, maternity benefits, and disability compensation. Employers must register their establishments within 15 days of the ESI Act becoming applicable.
Eligibility For ESIC Registration
To be eligible for ESIC registration is to have more than 10 workers. In some regions, ESIC registration is possible for establishments only if there are more than 20 employees. Here are some other criteria that need to be satisfied for obtaining ESI registration.
- An employee whose gross salary is up to Rs. 21,000 per month can avail of this with the help of the employer.
- The establishment is registered with the EPFO.
- The total contribution to ESI is 4.00% of the gross salary and it can be further divided as:
- 3.25% by the employer
- 0.75% of the employee
- For industrial units where there are chances of occurrence of injury or health issues all the employees with a salary less than Rs.21,000 compulsorily need to get ESI registration.
Documents Required For ESIC Registration
For obtaining ESI registration in India here is the list of documents that is to be submitted by the employer along with the application:
- Registration Certificate of the Shops and Establishment Acts.
- Factories Act
- Address proof of Principal place of business
- Copy of PAN Card
- Bank statement (Latest)
- Memorandum and Articles of Association or the partnership deed or trust deed depending on the nature of the entity.
- Certificate of Commencement registration no
- The monthly pay sheet is also required for computing the contribution amount for each employee for ESI filings.
ESIC Return filing Fee
Due Date for ESIC Return Filing
Filing ESIC returns is essential for maintaining compliance and avoiding penalties. Employers must file monthly contributions by the 15th of each month and half-yearly returns by November 12th (for April-September) and May 12th (for October-March). Even if there are no contributions in a month, a NIL declaration must be submitted.
Consequences of Non-Compliance
Failure to file returns on time can lead to penalties ranging from ₹5,000 fines to imprisonment for up to two years under Section 85 of the Employees State Insurance Act. Additionally, delays incur interest charges of 12% on outstanding amounts.
ESIC Registration Benefits
ESI registration allows the employees to enjoy a lot of benefits under the Employees State Insurance corporation scheme.
- Medical Aid- From the very first day of employment the registered ESI members and the family members enjoy the benefits of complete medical care and insurance. Retired members and permanently disabled insured persons and their spouses can also avail medical care on payment of an annual premium of Rs.120.
- Maternity benefit- Pregnant women can avail of maternity benefits that are payable up to twenty-six weeks. This maternity leave period can be extended on medical advice by 30 days at the rate of full wage subject to contribution for 70 days in the preceding year.
- Disablement benefit- From the day of the employees irrespective of having done any contribution, 90% of the wage is payable as long as the temporary disability continues. Permanent disablement benefit is payable at 90% of the wage as a monthly payment.
- Sickness benefits- Absent at work due to illness is allowed for a maximum of 91 days per year along with 70% of the monthly wages.
- Dependent benefits- In case of the sudden demise of an employee during the employment, the dependents of the deceased employee will receive 90% of his or her monthly salary.
- Funeral expenses- The family members of the deceased employees are entitled to an additional amount of Rs.10,000 for the funeral expenses.
- Confinement expenses- Confinement expenses can be availed in case of confinement of an insured woman or wife of the employee with no medical facilities under the ESI scheme.
Here are some need-based benefits:
- Vocational Rehabilitation: Permanently physically challenged employees who are insured are entitled to vocational rehabilitation training at VRS.
- Physical Rehabilitation: Can be availed by the employees in case of physical disablement or injury or hazards due to employment.
- Old Age Medical Care: By the annual payment of Rs.120 medical care benefits can be availed for the ESI employees or for those who are opting for VRS/ERS. The members who retiring on account of permanent disability can also avail themselves the same.
- Extended Sickness Benefits: Insured employees who are suffering from chronic diseases can avail of the extended sickness benefit up to 2 years, the sick leave of 91 days should be expired.
- Enhanced Sickness Benefit: Enhanced sickness benefit was an encouragement measure for ESI employees to undergo vasectomy or tubectomy for the welfare of the family. Extension of this benefit can be availed in case there are post-operative complications.
Frequently Asked Questions
The ESI scheme is a comprehensive social security scheme that is designed to accomplish the task of socially protecting the employees in the organized sector against the event of sickness, maternity, disablement, and death due to employment injury.
The existing wage limit for coverage under the ESI Act is Rs. 21,000 per month w.e.f from 1.01.2017.
The ESI Scheme will be calculated on the gross salary of 21,000 if the salary is above 21,000 the ESI will still be constant.
The employee insured person and the family are entitled to avail medical benefits from the very first day of his or her joining the insurable employment.
The ESI act 1948 is an establishment that has more than ten employees in the organization and has a maximum salary of Rs.21,000 per month should mandatorily apply for the ESI registration under the ESI Act within 15 days.
The ESIC scheme does not cover the workers or the employees that earn more than Rs.21,000 per month and in the case of a person with disabilities, the maximum wage is Rs. 25,000