ESI is an autonomous organization under the Ministry of Labour and Employment, Government of India. Employee's State Insurance (ESI) is a self-financing social security and health insurance scheme for Indian workers.
The scheme provides full medical cover to the employee registered under the ESI Act, 1948 during the period of his incapacity, restoration of his health and working capacity.
It provides financial assistance to compensate for the loss of his/ her wages during the period of his absenteeism due to sickness, maternity and employment injury. This scheme provides medical claim to his/her family members also.
ESI Registration is mandatory for every factory and specified establishments who have 10 or more permanent employees and wages of such employees are less than Rs. 21,000/- per month.
Yes, it is the statutory responsibility of the employer under Section 2A of the Act read with Regulation 10-B, to register their Factory/ Establishment under the ESI Act within 15 days from the date of its applicability to them.
In case of any non-compliance by an employer, such as failure to get esic employer registration online or not fulfilling esi return filing procedure, he shall be liable for a fine of INR 10,000/-.
According to the notification issued by the appropriate Government (Central/State) under Section 1(5) of the Act, the following establishments employing 10 or more persons attract ESI registration coverage
Shop
OHotels or restaurants not having any manufacturing activity, but only engaged in 'sales';
Cinemas including preview theaters;
Road Motor Transport Establishments;
Newspaper establishments. (that is not covered as a factory under Sec.2(12));
Private Educational Institutions (those run by individuals, trustees, societies or other organizations and Medical Institutions (including Corporate, Joint Sector, trust, charitable, and private ownership of hospitals, nursing homes, diagnostic centers, pathological labs).
ESI Registration provides monetary and medical benefits to employees in case of sickness, maternity and employment injury and to make provisions for related matters.
Some of the benefits of ESI Registration are :
Every month, employers are required to contribute 3.25 % and employee contributes 0.75% of the wages payable. Total ESI contribution i.e. 4% deposited to the ESIC fund.
Total ESI contribution is 4%
ESI contribution rates for employee and employers are as below :
|
Employee |
Employers |
|
3.25% |
0.75% |
All the business entities having an ESIC Registration need to do regular ESI return filing.
The following below are ESI returns as follows:
|
ESI Returns |
Interval |
Due Date |
|
Form 5 |
Half Yearly |
April to September: 11th November October to March: 11th May |
|
Form 1a |
Annually |
31st January |