Employee State Insurance (ESI) Registration


Mandatory for all companies with > 10 employees

Starting At Rs. 4,799 Onwards

SAVE 30% COST…!!!

(Takes 2-8 days)

ESI Registration

What is Employee State Insurance Corporation

Employee State Insurance Corporation or ESIC is a self-financing social security and health insurance scheme which provides medical benefit, sickness benefit, maternity benefit, disablement benefit and various other benefits such as funeral expenses, free supply of physical aids etc. to the employees and their family.

Units or Establishments that have 10 or more employees, drawing the wages of up to Rs.15,000 a month are required to be registered for ESIC under the ESI Act 1948. The benefits provided by the scheme are funded from the contributions raised from covered employees and their employers at the fixed percentage of wages. At present, covered employees contribute 1.75% of the wages to the ESIC and covered employers contribute 4.75% of the wages, payable to their employees. The state government also contribute 1/8th share cost of medical benefit. ESI Registration is done through KBTM Consultants.

All Establishments and Factories employing more than 10 employees are required to mandatorily apply for ESI registration within 15 days of the ESI Act, 1948 becoming applicable to them. ESI Registration can be done through KBTM Consultants in Delhi NCR, Mumbai, Bengaluru, Chennai and other Indian cities.

Choose ESI Registration because :

  • Provides complete medical care to employees
  • Includes employee’s dependants also
  • Mandatory for units with >10 employees

What is included in Our ESI Package

ESI Registration Procedure

Documents Required For ESI Registration

To be Submitted by Employer :

  • Registration Certificate or Licence issued under Shops and Establishment Acts or Factories Act.
  • Address Proof: Latest Rent receipt of the premises you are occupying indicating the capacity in which the premises are occupied, if applicable.
  • Latest building Tax/Property Tax receipt (Photocopy).
  • Memorandum and Articles of Association/Partnership Deed/Trust Deed depending on the entity that is applying for registration.
  • Photocopy of certificate of Commencement of production and/or Registration No. of CST/ST (or GST once it becomes applicable).
  • Copy of PAN Card
  • Evidence in support of the date of commencement of production/business/first sale (e.g. Copy of First Invoice).
  • Month wise employment position, salary etc.
  • Copy of bank statement

To be Submitted by Employees :

  • Family Photo in Duplicate

Advantages of ESI Registration

  • It provides complete medical benefits
  • It includes dependants
  • It can be used at different ESI dispensaries and hospitals
  • Any payments made will be reimbursed
  • It takes the needs of the disabled into account
  • Access to Medical care in ESI Dispensaries/Hospitals

Applicability of ESIC Registration

The following establishments employing 10 or more persons attracts ESI coverage :

  • Shops
  • Hotels or restaurants not having any manufacturing activity, but only providing service.
  • Cinemas
  • Roadside Motor Transport Establishments
  • News paper establishments
  • Private Educational Institutions and Medical Institutions

In some states the minimum employees required for coverage is for 20 or more. A few State Governments have not extended scheme to include Medical & Educational Institutions.

What is ESI Registration

It is a vast social security scheme designed to accomplish the task of providing social protection to the ’employees’ in the organised sector against the uncertain events of sickness, maternity, disablement and death due to injury sustained in the course of employment and to provide medical care to the insured employees and their dependents.

The scheme provides complete medical care to the employees registered under the scheme during the period of incapacity for recuperation of health and working capacity. It provides monetary assistance to compensate for the loss of wages during the period of absence from work due to sickness, maternity and employment injury. The scheme provides medical care to the employees’ dependents also.

All Establishments and Factories employing more than 10 employees are required to mandatorily apply for ESI registration within 15 days of the ESI Act, 1948 becoming applicable to them.

Concerns Related to ESIC Registration

  • The ESI scheme is a self-financing scheme from the contributions. The ESI funds are primarily built out of contribution from employers and employees monthly at a fixed percentage of wages paid. The State Governments also contributes 1/8th share of the cost of Medical Benefit.
  • The following establishments employing 10 or more persons attracts ESI coverage :

    • Shops
    • Hotels or restaurants not having any manufacturing activity, but only providing service
    • Cinemas
    • Roadside Motor Transport Establishments
    • News paper establishments
    • Private Educational Institutions and Medical Institutions

    In some states the minimum employees required for coverage is for 20 or more. A few State Governments have not extended scheme to include Medical & Educational Institutions.

  • Any sum deducted from wages under the ESI Act will be deemed to have been entrusted to the employer by the employee for the purpose of paying the contribution for which it was deducted. Non-payment or delayed payment of the Employee’s contribution after being deducted from the wages of the employee amounts to ‘ Breach of trust’ and is a criminal offence punishable under Section 406 of IPC.

In some states the minimum employees required for coverage is for 20 or more. A few State Governments have not extended scheme to include Medical & Educational Institutions.

Steps for ESIC Registration

Step 1 Getting ESI Registration :

Establishmentsor Factoriesmust get themselves registered within 15 days of the Act becoming applicable to them by submitting an Employer’s Registration Form (Form-01) to the relevant Regional Office.

Step 2 Obtaining Code Number :

A 17-digit identification number called the Code number will be provided which must be used in all Correspondence relating to the Scheme. Form 3 (Return on Declaration) must also be submitted along with Form 1.

Step 3 For Employees :

At the time of joining the insurable employment, employees are required to fill in aDeclaration Form (Form1) and submit two copies of a family photo to the employer, which must be submitted to the relevant ESI Branch Office by his employer.

Step 4 Insurance Number :

The employee will then be allotted an insurance number for the purpose of his identification under the scheme.

Step 5 Temporary Identity Card :

The employees will also be issued a temporary identity card for availing medical benefit for him/herself and his/her family for a duration of three months.

Step 6 Permanent Photo Identity Card :

Thereafter, he will be provided with a permanent photo identity card. A person once registered need not register again when there is a change of employment. The same registration can be transferred from one employment to another.

Frequently Asked Questions

1. What is the procedure for registration of an employer?
2. Is it mandatory for the employer to register under ESI?
3. What are the compliance requirements?
4. Whether the benefits grant to insured employees are transferable?
5. In which cities does KBTM Consultants provide ESI Registration?
6. Why should I choose KBTM Consultants for ESI Registration?
7. Is it mandatory for the Employer to register under the scheme?
8. What is the ESI Code number?
9. Can an establishment or factory once covered go out of coverage if the number of persons employed falls below the minimum limit prescribed?
10. If the wages of an employee exceed Rs.15,000/- in a month, will he not be covered and deduction of contribution from his wages should be stopped?
11. Is over-time to be included for wage ceiling limit for coverage of an employee?
12. What is the time limit for payment of contribution?
13. What is the mode of payment of contributions?
14. Is there any interest on delayed payment?
15. What are the records to be maintained for the purpose of the ESI scheme?
16. What are the reports to be submitted by the employer?
17. What is Registration of an employee?
18. Why Registration of an employee is necessary?
19. What is an identity card?
20. What is the scale of Medical Benefit?
21. Whether the disablement or dependant benefits have a minimum period of
22. What is the benefit admissible to dependents?
23. Who are the persons to be counted for coverage of an establishment?
24. Who is a Principal Employer?
25. Who is an Immediate Employer?
26. Who are the persons to be covered as “Employees”?
27. What are the periods of contribution and benefit?
28. What is ‘Sickness Benefit’?
29. What is Disablement?
30. What is an ‘Employment related Injury’?
31. When do Dependants receive Benefits?
32. What is maternity benefit?
33. What are funeral expenses? Who is to be paid?
34. What is Standard Benefit Rate?

Why Choose KBTM Consultants

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