What is ESI Registration services?
ESI Registration
What is ESI registration?
The employee state insurance (ESI) is managed and regulated by the Employee State Insurance Corporation which is an autonomous body under the Ministry of Labour and Employment, Government of India. The ESI scheme was started for the Indian Employees that provided monetary, medical, and other benefits from the employer to the employee.
Currently any factor or employment or any establishment that has employed over 10 employees with a minimum salary of Rs. 21,000 has to mandatorily register itself with the ESIC.
Eligibility
Who is eligible to obtain ESI registration in India?
To be eligible for ESI registration is to have more than 10 workers. In some regions, ESI 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 6.5% of the gross salary and it can be further divided as:
4.75% by the employer
1.75% 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.
RELATED GUIDES..
Employees Compensation Act
Requirements for operating commercial spaces
Benefits of ESI registration
Documents required for obtaining ESI 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.
Definition of Factory under ESI Act
A Factory is any premise where ten or more than ten persons are employed or were employed for wages on any day of the preceding twelve months, and, in any part of which a manufacturing process is being carried with or without the aid of power. In case within the same premises of a factory, several departments are situated and the departments are engaged in the work in connection with or incidental to a manufacturing process of the factory, they would fall apart from the factory.