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The Employees' State Insurance (ESI) Act 1948 was introduced as a social protection plan to give social security to the employees of the organized sector across India. The Act was to safeguard the interests of employees in events that could cause loss of wages or earning capacity. These events include sickness, maternity, temporary or permanent physical disablement, and death due to work injury.
The contributing workers can avail themselves of following benefits:
Treatment & Insurance
ESI enrolled employees and their families are qualified to take the benefit of complete clinical consideration and Insurance.
Leave & compensation
During certified sickness, employees are entitled to absent themselves from work for a limit of 91 days a year alongside 70% of the month-to-month compensation.
Maternity aid
Pregnant lady workers are entitled for Maternity aid for a period up to 26 weeks which can be extended to 30 days on clinical guidance.
Disablement compensation
If disability is caused at work then such impaired workers can get 90% of their month-to-month compensations as disablement benefits.
Death compensation
In the event of the death of an employee caused by any occupational hazard, ESIC pays 90% of his/her salary to his/her wards every month. The family of the deceased worker is entitled to an additional amount of Rs. 10,000 towards funeral expenses.
The ESI Scheme is financed by contributions from employers and employees. The rate of contribution by the employer is 4.75% of the wages payable to employees. The employees' contribution is at the rate of 1.75% of the wages payable to an employee.
Exemption: Employees earning less than Rs. 137/- a day as daily wages are exempted from payment of their share of contribution.
All Establishments and Factories utilizing in excess of 10 employees have to obligatorily apply for ESI enrollment in the span of 15 days from the date of its applicability to them. However, in some States threshold limit for coverage of establishments is 20.
After enlistment, ESIC gives acknowledgment to the utilizing element and its workers through designating a 17-digit special ID code.
Employees' State Insurance Corporation (ESIC), under the Ministry of Labor and Employment, Government of India, regulates the registration under the ESI scheme. This apex independent welfare organization directs the companies to comply with the guidelines of the Indian ESI Act of 1948.
• Medical institutions
• Hotels or restaurants
• Newspaper establishments
• Shops
• Cinemas and Movie theatres
• Private educational institutions
• Roadside motor transport establishments
• Registration Certificate of the Shops and Establishment Acts/Factories Act
• Incorporation Certificate, MOA and AOA of Company/ Partnership Deed or Trust Deed/ GST Certificate of the Establishment
• Address proof of your Business Place
• Copy of PAN of your Business
• Bank Statement (Latest) and a Cancelled Cheque (For Authentication)
Note – Monthly payment sheet is also required to calculate contributions for each ESI-filed employee.
