Employees State Insurance

ESI provides security cover for your employees for a rainy day. Employees State Insurance is a self-financing social security and health insurance scheme for Indian workers. The fund is managed by the Employees State Insurance Corporation according to rules and regulations stipulated in the ESI Act 1948. It is applicable to factories, shops and establishments which employ more than 10 persons and have employee drawing less than Rs. 21000 must obtain ESI Registration.

Why register with Earendil

• Our Chartered Accountant will be guiding you through the process. He/she will be your single point of contact for registration assistance and for all other services that we offer.
• Our motto is “You only do what you do best; to us, leave the rest”. We assure that once we start our relationship, you wouldn’t have to think about the areas which we handle.
• Creation of a tax efficient salary structure and incentive schemes for employees.
• We ensure optimal outflow of statutory obligations such as PF and ESI so as to reduce cash outflow.

REGISTRATION

• An employer who is to register with the ESIC has to keep the employee count considering the following aspects for the threshold of 20 employees.
• Persons on the roll of a factory, who are on leave with or without wages.
• A substitute or badli worker employed for wages.
• Directors who are on the pay roll of a company.
• Persons drawing over Rs.21000 per month as wages, but not coverable otherwise.
• Persons employed by, or through a contractor and working under the direct supervision of the employer.
• Apprentices or trainees undergoing training and learning the trade under an approved scheme will not be counted for determining the covered of a manufacturing unit or an establishment.
• An employer needs to keep all documents ready for reference.
• An employer must file Form 1, which is available in PDF format on the ESIC website.
• ESIC will verify all the details and issue a 17-digit unique number. This unique number is required for all filings.
• Every employee will receive an ESI card post submission of the form stating all details by the employer..

DOCUMENTS REQUIRED FOR REGISTRATION

• PAN card of the business.
• Address proof of business.
• The license obtained under Shop and Establishment Act or Factories Act.
• Basic documents required as per the nature of entity – Articles of Association, Memorandum in case of a company, partnership deed in case of a partnership and Limited Liability Partnership.
• Details of all directors, partners, and shareholders.
• Details of all employees along with their salary information.
• Cancelled cheque.

ESI PAYMENTS AND FILING DATES

Every employer has to remit the monthly ESI dues on the 15th of the following month.The half-yearly return of ESIC for the period April to September is due by 12 November, and October to March is due by 12 May.