The Employee State Insurance (ESI) Act 1948
The Employees' State Insurance (ESI) Act, 1948, stands as a landmark social security legislation in India. Enacted by the Indian Parliament, this act aims to provide comprehensive medical care and cash benefits to employees and their dependents, thereby safeguarding them against the financial hardships arising from health-related contingencies.
Under the ambit of the ESI Act, 1948, eligible employees and their families are entitled to various benefits, including medical attendance, treatment, and hospitalization, ensuring their access to quality healthcare services. The act establishes a contributory fund into which both employers and employees make regular contributions, facilitating the provision of these benefits.
Key Features of the ESI Act, 1948
1. Scope: The Act applies to factories and certain specified establishments employing ten or more persons. It also covers establishments engaged in specified hazardous activities, irrespective of the number of employees.
2. Insurance Coverage: Under the ESI scheme, employees and their dependents are entitled to comprehensive healthcare benefits, including medical attendance, treatment, and hospitalization.
3. Contributions: Both the employer and the employee contribute to the ESI scheme. The employer's contribution is a percentage of the employee's wages, while the employee's contribution is a fixed percentage of their wages.
4. Benefits: The ESI Act provides various benefits such as sickness benefit, maternity benefit, disablement benefit (temporary and permanent), dependent's benefit, funeral expenses, and rehabilitation allowance.
Eligibility for ESI Benefits
• As per Section 2(12) of the ESI Act, 1948, employees in establishments, factories, or shops with more than 10 employees are eligible for ESI benefits.
• ESI medical benefits can be availed by all workers and their dependents across various industries and sectors from ESIC hospitals, dispensaries and ESI tied up hospitals.
• Employees earning less than Rs. 21,000 per month and individuals with disabilities earning less than Rs. 25,000 per month are eligible for benefits under the ESI Act.
Documents Required for ESI Registration
The following documents are required in digital or electronic format for online registration:
• MSME (Udyog Aadhar) Certificate.
• Partnership registration certificate.
• Registrar of Companies (ROC) certificate.
• Partnership deed for partnership firms.
• Goods and Services Tax (GST) Registration Certificate of the establishment.
• Memorandum of Association (MoA).
• Articles of Association (AoA).
• Rental agreement for the establishment's premises.
• Property tax receipt for the establishment's location.
• Employee list.
• PAN details of the business and owners.
• A cancelled cheque from the company's bank account.
• List of the company's directors.
• Record of attendance, salary & wage register of all employees.
Beneficiary Enrollment & Compliance
After receiving the registration certificate (C11) from ESIC, the following compliance must be done:
• Enrollment of eligible employees in ESIC employer portal with Aadhaar, bank details and dependent Aadhaar details.
• The establishment must maintain an attendance register of all employees.
• Wage & salary register to be maintained for ESIC regulations.
• Monthly returns to be filed in ESIC portal for generating challan which must be remitted on or before 15th of the succeeding month.
• Accident register to be maintained by the employer for recording any accidents occurring within the premises or during transit to work.
Our Contribution
• As experts in this field, we assure to handle end-to-end compliances in ESIC from registration till inspection support.
• We can handle any kind of discrepancies regarding benefits and contributions during periodical inspections by ESIC authorities.
• We support employees for their benefits and employers for their compliance.