Employee regional insurance (ESI) is owned and operated by the Employee State Insurance Corporation which is an independent body under the Department of Labor and Employment, Government of India. The ESI program was started by Indian Workers providing financial, medical, and other benefits from employer to employer.
Currently any item or lease by any institution that employs more than 10 employees for a minimum salary of Rs. 21,000 must register with ESIC.
Who is eligible to register for ESI in India?
- To qualify for ESI registration is to have more than 10 employees. In some regions, ESI registration is possible at institutions only if there are more than 20 employees. Here are some suggestions on how to look or get an appointment for ESI registration.
- The total salary for the project is up to Rs. 21,000 per month can use this with the help of the employer.
- The center is registered with EPFO.
- The total ESI total is 6.5% of total salary and can also be divided into:
- 4.75% by employer
- 1.75% of employees
- In industrial units where there is a risk of injury or health problems all employees earning less than Rs.21,000 necessarily need to obtain ESI registration.
Documents required to obtain ESI registration
To obtain ESI registration in India here is a list of documents that must be submitted by the employer with the application:
- Certificate of Registration and Supply Chain Registration Certificate.
- Industrial Law
- Proof of business location Primary business
- Copy of PAN card
- Bank Statement (Recent)
- Memorandum with Articles of Association or title deed or trust deed depending on the nature of the business.
- Initial Registration Certificate No
A monthly salary sheet is required to calculate the contribution amount for each activity in the completion of the ESI.
Definition of Factory under the ESI Act
An industry is any place where ten or more people are employed or employed to earn wages on any day of the preceding twelve months, and, in any part where the production process is carried out with or without force assistance. In the event that in the same factory premises, more departments are present and the departments performing the work related to or in line with the factory production process, will separate from the factory.
This definition of a factory under ESI includes a seasonal factory that operates for a period not exceeding seven months per year and is involved during that period in any process related to mixing, packaging, or re-packaging for tea or coffee or other production. Procedures introduced by central government.
The mines are not included in this definition under definition, subject to the application of Mines Act, 2952 or the railway shed.
Therefore, if the number of people working on the premises of the factory is ten or more the area is factory whether they are paid or not. Also, all the people who work in the factory do not have to be employed in the production system.
Definition of establishment under the ESI Act
Under the ESI Act, the establishment is a formal body of men or women or an institution, It is not necessary for the institution to be closed in a particular place or area. If the center employs 20 or more people, it will need to obtain ESI registration in India. Therefore, institutions that employ less than 20 employees earning less than Rs.21, 000 per month as salary should not be eligible for ESI registration.
Stores must also be registered under the ESI Act. The high court described the store as any other building in which economic activity led to a sale or purchase. Therefore, an important ingredient in determining a store is that the services are provided to the customer. Therefore service providers such as advertising agencies, liaison offices, consulting services, real estate services will need to obtain ESI registration in India.
In this educational institution, hospitals, dispensaries, offices of auditors and attorneys, chartered accountants, and private hospitals are excluded.
Benefits of ESI registration in India
What are the advantages of getting ESI registration in India?
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 program is a comprehensive social security system designed to fulfill the responsibility of protecting community workers in a planned field against the occurrence of illness, childbirth, disability, and death due to occupational injuries.
The current minimum wage for operating under the ESI Act is Rs. 21,000 per month.
The ESI Scheme will be calculated at a total income of 21,000 if the income exceeds 21,000 the ESI will remain permanent.
The ESC does not cover employees or employees earning more than Rs.21, 000 per month and in the case of a person with a disability, the maximum salary is Rs. 25,000
An insured employee and family are entitled to medical benefits from the first day of joining the insured employee.