The Employees State Insurance (ESI) is a social security and health insurance scheme for employees in India. It is administered by the Employees State Insurance Corporation (ESIC) and provides comprehensive medical care, sickness benefits, maternity benefits, and other benefits to the employees covered under the scheme.
Employers need to register their eligible employees under the ESI scheme. The employer is responsible for completing the registration formalities and submitting the necessary documents to the ESIC. The employer must ensure that all the employees covered under ESI are registered with the concerned ESIC office.
To register for ESI, an employee must satisfy certain eligibility criteria. They must have worked for a minimum of 8 hours in a day and 30 days in a calendar month. Additionally, the employees should have a monthly salary below a certain specified ceiling. The employer should verify and confirm the eligibility of the employees before initiating the registration process. The employer and the employee have to contribute 3.25% and 0.75% of the total monthly wages, respectively, to the ESIC.
The wages for ESI purposes include basic pay, dearness allowance, city compensatory allowance, house rent allowance, incentive allowance, overtime allowance, etc. The wages do not include any remuneration paid under any award or settlement, bonus, commission, contribution paid by the employer to any pension or provident fund, travelling allowance, gratuity, etc.
After verifying the eligibility of the employees, the employer needs to obtain an ESI Registration Number (RN). The RN is a unique identification number allotted to each registered employee. The employer can obtain the RN by contacting the ESIC office in their jurisdiction.
After that, the employer must visit the ESIC portal and click on the ‘Employer Login’ option on the home screen. If the employer is a new user, he or she has to click on ‘Sign Up’ and enter the company name, principal employer name, state, region, and email ID, and agree to the terms and conditions. Then, the employer has to click on ‘Submit’. Fill in the form with accurate details and submit. After that employer will receive a confirmation mail containing your username and password details on your registered e-mail ID.
After submitting the form, the employer will get a 17-digit employer code number, which is the unique identification number for ESI purposes. The employer will also get a temporary username and password to access the employer portal. Then log in to the ESIC portal using the received username and password. Click on the ‘Register Now’ button under the ‘Employers’ section on the homepage. Then select your state and then click on the ‘Submit’ button. Fill in the required details in the registration form, such as company name, address, phone number, email ID, PAN number, etc.
Once you have completed these steps, your establishment or company will be registered with the ESIC. Remember, eligible establishments must register under the ESI Act. Failure to do so can result in penalties. So, make sure you register your establishment as soon as it becomes eligible for the ESI scheme.
With the RN, the employer needs to submit the personal details and details of the employees such as their name, address, date of birth, and PAN card details. Additionally, the employer should provide information about their establishment, such as name, address, and registered number of employees.
Employers are required to make monthly contributions to the ESI fund on behalf of their employees. The contribution amount is calculated based on the employee’s salary and is calculated as per applicable rules and regulations. The employer needs to collect the amount and deposit it regularly into the designated ESIC bank account.
Conclusion – As we all know,efficiently registering for Employees State Insurance (ESI) involves leveraging digital solutions like Digital Seva Kendra and CSC Digital Seva. Utilising these platforms streamlines the process, ensuring a hassle-free experience for employers. The digital seva approach enhances accessibility, making ESI registration seamless and convenient, marking a progressive step towards efficient employee welfare management in the contemporary digital era.