What is Employee State Insurance (ESI) ?

The Employee State Insurance (ESI) is like a safety net for employees in India. It’s run by a government body called the Employee State Insurance Corporation (ESIC) and falls under the Ministry of Labour and Employment. The ESI scheme was created to provide various benefits to Indian employees, including financial help and medical support, which employers give to their workers.

Any business or workplace with more than 10 employees who earn at least Rs. 21,000 a month must sign up with ESIC. It’s a way to ensure that employees are taken care of in case they need medical assistance or financial support during tough times. So, in simple terms, ESI is a safety and support system for employees in India, and it’s mandatory for certain businesses to be a part of it.

Application Requirements for Employee State Insurance (ESI)  Registration

• Number of Employees: You need to have more than 10 workers, but in some areas, it’s required if you have more than 20 employees.
• Employee Salary: Employees with a gross monthly salary of up to Rs. 21,000 are eligible for ESI registration.
• EPFO Registration: Your establishment should be registered with the EPFO (Employees’ Provident Fund Organization).
• Contribution Percentage: The total contribution to ESI is 6.5% of the gross salary. It’s divided into 4.75% paid by the employer and 1.75% paid by the employee.
• Safety Concerns: If your workplace involves the risk of injuries or health issues, all employees with a salary under Rs. 21,000 must have ESI registration.

Documents Needed to register for Employee State Insurance (ESI) Registration

• Business Registration:
  • Registration Certificate of the Shops and Establishment Acts.
  • Factories Act.
• Address and Financial Details:
  • Address proof of your main place of business.
  • Copy of your PAN Card.
  • Latest bank statement.
• Legal Structure:
  • Memorandum and Articles of Association (for companies) or partnership deed or trust deed, depending on the type of entity.
• Additional Information:
  • Certificate of Commencement registration number.
  • Monthly pay sheet to calculate the contribution for each employee for ESI filings.