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ESI Filing

Employees’ State Insurance Scheme of India, is a multidimensional social security system framed to provide socio-economic protection to employees and their dependents covered under the scheme. Employees and its dependents having medical care facility which is allowed from day one of employment in the organization. The insured employee are also entitled to various cash benefits at the times of sickness, disablement etc. The dependents of insured persons who die in industrial accidents or because of employment injury or occupational hazard are entitled to a monthly pension.

All the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act being contributory in nature. The contribution payable to the Corporation in respect of an employee shall comprise of employer’s contribution and employee’s contribution at a specified rate. The rates are revised from time to time. Currently, the employee’s contribution rate (w.e.f. 1.1.97) is 1.75% of the wages and that of employers is 4.75% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage up to Rs.100/- are exempted from payment of contribution. Employers will, however, contribute their own share in respect of these employees. An employer is liable to pay his contribution in respect of every employee and deduct employees’ contribution from wages bill and shall pay these contributions at the above-specified rates to the Corporation within 21 days of the last day of the Calendar month in which the contributions fall due. The Corporation has authorized designated branches of the State Bank of India and some other banks to receive the payments on its behalf.

Advantages

Easy to Start

Our renowned coaching programs will allow you to:

Work fewer hours — and make more money

Attract and retain quality, high-paying customers.

Manage your time so you’ll get more done in less time.

Hone sharp leadership skills to manage your team

Hone sharp leadership skills to manage your team

Automate your business, so you can leave for days, weeks, or even months at a time.

Business Name

Our renowned coaching programs will allow you to:

Work fewer hours — and make more money

Attract and retain quality, high-paying customers

Manage your time so you’ll get more done in less time

Hone sharp leadership skills to manage your team

Automate your business, so you can leave for days, weeks, or even months at a time

SERVICE TAX STATUTORY OBLIGATIONS

For all those who have a liability to register themselves, if fails to do the same than under section 75A of the finance act 1994 penalty for the failure of an assessed to get himself registered was fixed at Rs. 500/- as a onetime payment but subsequently this section was deleted by the virtue of the finance act 2004 and now the general penalty that is applicable is Rs. 1000/- as per section 77 of Finance act.

Documents required

  • 1

    Documents for Company

    • PAN
    • Rental Agreement
    • Bank Statement
    • EB receipt
    • Resolution Copy in case of Company
  • 2

    Documents for Owners

    • PAN
    • Voter ID / Passport/ Driving License / Aadhar Number
    • Photo – 2 Nos
    • ATTESTATION
    • Documents to be attested
  • 3

    REGISTRATION

    • ST-2 will be issued by the department.

Business Plan

Basic

Rs.700/-

  • For less than 20 employees

Standard

Rs.1,300/-

  • For less than 40 employees

Advanced

Rs.2,600/-

  • For less than 80 employees

HOW LONG DOES IT TAKES?

1 DAY

Collection of Documents

1 DAY

Preparation of Application

1 DAY

Submission of Application

1 DAY

Certificate of Udyog Aadhar Registration

Frequently Asked Questions

What is ESI Scheme?
It is a comprehensive Social Security Scheme designed to accomplish the task of socially protecting the ’employees’ in the organized sector against the events of sickness, maternity, disablement and death due to employment injury and to provide medical care to the insured employees and their families.
How does the scheme help the employees?
The scheme provides full medical care to the employee registered under the scheme during the period of his incapacity for restoration of his health and working capacity. It provides financial assistance to compensate the loss of his/ her wages during the period of his abstention from work due to sickness, maternity and employment injury. The scheme provides medical care to his/her family members also.
Who administers the ESI Scheme?
The ESI Scheme is administered by a corporate body called the ‘Employees’ State Insurance Corporation’ (ESIC), which has members representing Employers, Employees, the Central Government, State Government, Medical Profession and the Parliament. The Director General is the Chief Executive Officer of the Corporation and is also an ex-officio member of the Corporation.
What are the other bodies of the ESI Corporation?
At the National level, the Standing Committee (a representative body of the Corporation) for administering the affairs of the Corporation, and the Medical Benefit Council, a specialized body that advises the Corporation on administration of Medical Benefit, are functioning. At the Regional Level, the Regional Boards and Local Committees have been constituted to review the functioning of the scheme and make suggestions for its improvement.
How the Scheme is funded?
The ESI scheme is a self financing scheme. The ESI funds are primarily built out of contribution from employers and employees payable monthly at a fixed percentage of wages paid. The State Governments also contribute1/8th share of the cost of Medical Benefit.
Implemented Areas?
ESI Scheme is implemented in phases in different part of the country through Gazette notification after making the infrastructure available towards dispensation of medical as well as other benefits provided under the provisions of the Act to the prospective beneficiary.
What is registration of Factory/ Establishment?
Registration is the process, by which every factory/ establishment, to which the Act applies, is identified for the purpose of the ESI Scheme, and their individual records are set up for them.
Is it mandatory for the Employer to register under the scheme?
Yes, it is the statutory responsibility of the employer under Section 2 –A 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.
What is the procedure for Registration of an employer?
The Factory or Establishment to which the Act applies is to be registered by logging into ESIC Portal i.e. www.esic.in. The employer is supposed to sign up, providing company name, principle employer’s name, State and region as well as e mail address. The employer trying to register would get a password into his mail id. The employer can log in to www.esic.in and his mail ID can be used as user ID and the password received has to be accessed from the mail box to be used to register his unit by providing information in the Portal. Automatically a 17 digit code number is generated after successful registration.
What is a Code number?
It is a 17 digit unique identification number allotted to each of the factory/establishment registered under the provisions of the Act. Such a number is generated through ESIC portal on submission of the pertinent information by the employer or generated on receipt of Survey report from the Social Security Officer.
What is a Sub-code number?
This is also a unique identification number allotted to a sub-unit, branch office, sales office or Registered Office of a covered factory or establishment located in the same State or different State. The employer can register any Branch or Sales Office through ESIC Portal using his credentials.
Can a factory or establishment once covered go out of coverage if the number of persons employed therein goes down to the minimum limit prescribed?
Once a factory or an Establishment is covered under the Act, it continues to be covered notwithstanding the fact that the number of persons/ coverable employees employed therein at any time falls below the required limit or there is a change in the manufacturing activity.
Is there any provision for ‘exemption of a factory or establishment’ from ESI coverage?
Of course exemption is permissible from operation of provisions of the Act subject to the condition that the employees in a factory or establishment covered are other-wise in receipt of benefits substantially similar or superior to those provided under the ESI Act. The appropriate Government may grant exemption to such factory or establishment for a period of one year at a time prospectively in consultation with ESI Corporation. Application for renewal is to be made three months before the date of expiry of the period exemption
If the wages of an employee exceeds Rs. 15,000 in a month, can he be treated as not covered and deduction of contribution from his wages is stopped?
If the wages of an employee (excluding remuneration for overtime work) exceeds the wage limit prescribed by the Central Government after start of contribution period, he continues to be an employee till the end of that contribution period and hence contribution is to be deducted and paid on the total wages earned by him.
What is the effect of increase in wages from a retrospective date?
In case the wages of an employee is increased from a retrospective date resulting in crossing the wage limit prescribed, its effect on coverage of that employee is only after expiry of the Contribution period during the currency of which such increase is announced or declared. The contribution on enhanced wages is also payable from the month in which such increase is announced. There is no need to pay the contribution on the arrears for the period prior to the month of declaration/ announcement/ agreement.
Why contribution should be paid on the total wages beyond the wage ceiling limit when an employee crosses the wage limit prescribed by the Central Government?
An employee who crosses the prescribed ceiling limit in any month at any time after commencement of the contribution period, he/she would continues to be an employee till the end of that contribution period. Though there is a ceiling limit of wages for coverage of an employee, there is no ceiling limit in the definition of wages for payment of contribution. Hence, contribution is payable on the total wages without any ceiling limit.
Why over-time is to be excluded for wage ceiling limit for coverage of an employee?
Overtime is not a regular and continuous payment, but it is of an occasional nature. If overtime is also taken for wage limit for coverage of an employee, he may be going out of coverage for some time and again coming within the orbit of the scheme, when overtime is not there. This frequent interruption from the scheme deprives him of the benefits admissible under the scheme even after making payment of contribution for a part of contribution period. To ensure continued security and protection, overtime is excluded for determining the wage ceiling for coverage of an employee. However, it is included for payment of contribution to cover the risk during the period he was on overtime work, and to enable him to draw cash benefits at an enhanced rate also.
Is there any provision for exemption from payment of Employer’s contribution?
With effect from 1-4-2008, the wage ceiling limit for coverage of employees with disability has been raised to rupees twenty five thousand a month. To encourage the employers for employing more employees with disability, the employer is exempted from payment of Employer’s share of contribution on the wages paid to the employees with disability for a maximum period of three years from the date of commencement of the contribution period in which such employee with disability is employed. The Central Government shall reimburse this Employer’s contribution to the ESI Corporation.
What is the time limit for payment of contribution?
Contribution shall be paid in respect of an employee in to a bank duly authorized by the Corporation within 21 days of the last day of the calendar month in which the contribution falls due for any wage period (Reg. 29 & 31).
What is the manner of working out & payment of contributions?
The employer needs to file monthly contributions online through ESIC portal on a monthly basis in respect of all its employees after duly registering them. Through this exercise, the employer has to file employee wise number of days for which wages paid & the amount of wages paid respectively to ascertain the amount of contributions payable. The total amount of contribution (both the shares) in respect of all the employees for each month is to be deposited in any branch of SBI in cash or by Cheque or demand draft on generation of such a challan through ESIC portal using credentials. Contributions can be paid online through SBI internet banking too.
What are consequences of non / late payment of employees’ contribution deducted but not paid?
Any sum deducted by the Principal employer from wages under the ESI Act shall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted (Sec. 40(4). Non-payment or delayed payment of the Employee’s contribution deducted from the wages of the employee amounts to ‘Breach of trust’ and is punishable under IPC 406.
Will the delayed payment attract any interest?
An employer who fails to pay the contribution within the limit prescribed under Regulation 31, shall be liable to pay simple interest at the rate of 12% per annum in respect of each day of default or delay in payment of contribution (Regulation 31-A).

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