ESI Registration - Advantages and Documents Required

Posted by Ananya Nair on November 6th, 2019

Employee State Insurance or ESI is the first self-financing social security scheme and health insurance plan for the working class of India. For all the employees earning RS. 21,000/- or less per month as wages, the employer contributes 3.25% and the employee contributes 0.75%, total share 4%. ESI is managed by an autonomous body known as ESIC (Employee State Insurance Corporation) which comes under the Ministry of Labour and Employment under the Government of India.

It refers to a social security facility made by Government of India under ESI Act 1948 to compensate the physical or financial distress causing from different health-related issues that the workers are generally exposed to, like illness, permanent/temporary disability, work-related disease or death due to occupational injury resulting in loss of earnings.

Documents Required For ESI Registration:

ESI Registration process requires submission of the below documents -

1. Copy of PAN card (mandatory) address proof of the Establishments/Firm

2. Self-attested copy of Bank statement.

3. Board Resolution.

4. A copy of the license of a certificate of registration under Shops and Establishments/or Factories Act.

5. Details of employees, Date of joining, Bank A/c number with IFSC code, details of the employment position, details of salary.

6. Date of commencement of business or production evidence.

7. Copy of COI and MOA and Partnership Deed/Trust Deed depending on the business entity.

8. List of directors, partners, and shareholders of the company

9. Cancel Cheque

10. Declaration Form of each employee along with their 2 Postcard size photographs (Optional)

Advantages of ESI Registration

The Advantages of ESI registration are as follows:

1. Medical benefits to the employee along with their family members.

2. Benefits for the dependents.

3. Funeral expenses.

4. Women employees could achieve maternity benefits in the form of paid leaves.

5. In case any employee has been declared as disabled or dead at work then the corresponding family members or dependents can get 90% of that employees’ salary every month.

6. Sickness Benefit could be offered to an employee if the person’s illness lasts for a maximum of 90 days in a year.