Introduction to How To Register For Provident Fund
Employee’s State Insurance Corporation (ESIC) is a self-governing organization under the Ministry of Labour and Employment, India’s Government.
Nearly all Private Limited Companies must do registration as per the provisions of the Employee’s State Insurance Act of 1948.
If any company fails to acquire the necessary enrolment through the ESI registration procedure, in that case, a company will be liable to face legal actions.
Overview of ESI Registration
The administration enacted the Employees’ State Insurance (ESI) Act of 1948 as an incorporated need based on the social insurance scheme.
Employee State Insurance Corporation (ESIC), a self-governing organization under the Ministry of Labour and Employment, governs and regulates the ESI Registration in India.
Employee State Insurance (ESI) is a self-financing social security scheme introduced to benefit the workers/employees by offering them essential benefits such as monetary facilities, medical facilities, and other benefits from the employer.
Nearly all Private Limited Companies must do registration as per the provisions of the Employee’s State Insurance Act of 1948.
If any company fails to acquire the necessary enrolment through the ESI registration procedure, in that case, a company will be liable to face legal actions.
Advantages of ESI Registration
· Sickness Benefit
The employees get sickness benefits at the rate of 70% of employees’ salary in case the sickness is continuous over 91 days in a year, and the same is also certified.
· Medical Benefit
The insured employees and families of such employees are provided medical benefits.
· Maternity Benefit
The maternity benefits are provided to female employees at the time of their pregnancy in the form of paid leaves.
· Benefits for Employees Family
In case if the employee is deceased while in employment, the family will get 90% of the employee’s salary.
· Funeral Expenses
In case of death, an employee covered under Employee’s State Insurance Corporation (ESIC) Funeral Expenses will be provided to the family of such employee.
· After Retirement Benefits
After the retirement of an employee who is covered under the Employee’s State Insurance Corporation (ESIC), medical and other essential benefits will be provided in old age.
· Insurance Benefit
In case an insured employee has become permanently disabled, 90% of the salary of such an employee is provided monthly in the form of insurance benefit.
· Unemployment Benefit
An insured employee who has the insurance over three years is provided unemployment benefits when such employee is unemployed. The unemployed benefits are provided at a rate of 50% of the salary only for one year.
What are the Necessary Documents Required for ESI Registration?
The following documents are necessary while applying for ESI registration application:
- The license issued as per the provisions of the Shops and Establishment Act of 1962 or any registration certification from concerned authorities for completing the process of ESI registration.
- In case if the applicant is an organization or a company, Memorandum of Association (MoA) and Articles of Association (AoA).
- If the applicant is a Partnership Firm, Partnership Deed must be submitted.
- In case the applicant is a Limited Liability Partnership, LLP Agreement must be submitted for completing.
- Certificate of Incorporation of production factories and registration certificates for other entities.
- PAN Card of the Business.
- Insured persons’ Nominee details.
- Latest Bank Statement of the Organization.
Eligible Entities for ESI Registration
The entities employing more than ten or more than ten employees are eligible for ESI registration. Following is the list of eligible entities:
Applicability of ESI and Its Coverage
The above-stated entities, if employed ten or more than ten employees at any time during the preceding year, must mandatorily take Employee’s State Insurance Corporation (ESIC) registration.
But the insurance is deducted from the employees who are earning INR 21,000 monthly, which includes basic wages as well as dearness allowance.
In some of the states, the coverage of Employee’s State Insurance Corporation (ESIC) applicability is limited to a minimum of 20 or more employees.
Employees’ State Insurance (ESI) scheme offers several benefits to the employees and their families covered under the Employees’ State Insurance (ESI) with a large network of hospitals, dispensaries, and medical clinics for providing fast medical care to an injured individual.
An organization needs to complete an Employees’ State Insurance (ESI) registration certificate within fifteen days of becoming applicable.
Though the Employee’s State Insurance Corporation’s (ESIC’s) rules and regulations are different for different states, and therefore, various rules and regulations vary accordingly.
ESI Registration Procedure in India
- The applicant can apply online via new registration alternative available on the official website of, Employee’s State Insurance Corporation (ESIC) in
- The candidate can sign up by making a login-id and password, which will be used further in the process for return filing or any other similar actions.
- A confirmation mail will be sent on applicants’ registered e-mail address and mobile number provided at the time of signing up.
- The applicant has to login by means of the same login-id and password for completing the application form online.
- The applicant has to complete all the details and provide relevant information in the application, and the one marked with Asterisk (*) must be compulsorily filled.
- After the applicant has completed the application, the applicant has to submit the application by paying the prescribed advance payment for the next six months.
- The applicant will get an Employees’ State Insurance (ESI) registration certificate along with seventeen digit registration number by the Employee’s State Insurance Corporation (ESIC) department once the registration application is completed.
Post-Registration Compliances
- Once the organization is covered under the Employee’s State Insurance Corporation (ESIC), it needs to act in accordance with the mandatory guidelines issued by the principal Act:
- Maintenance of attendance register
- An inclusive register of wages for workers
- Inspection book
- periodical return & challan within 15th of the subsequent month
- The register maintained to record any accidents that happened on the premises.
Conclusion
The administration enacted the Employees’ State Insurance (ESI) Act of 1948 as an incorporated need based on the social insurance scheme.
Employee State Insurance Corporation (ESIC), a self-governing organization under the Ministry of Labour and Employment, governs and regulates the ESI Registration in India.
