An Intro (Publicly familiar words)
Every one of us would have come across with the following words while seeing our salary statement that’s nothing but ESI & PF. Every organisation which has more than 20 employees, it is mandatory to register under ESI scheme. It is further necessary that ESI contribution is required for employees whose salary is less than 21,000/-.
- PAN Card of the Company & Copy of the Sales Bill.
- Any licence for the Company (GST or MSME etc).
- Address proof for the company (Rental Deed).
- Number of employees and their details.
What is the contribution Percentage on ESI Scheme: For every employee who is earning a salary of more less than Rs.21,000/- per month, the employee must contribute 1.75% on his salary and Employer must contribute 4.75 % and which comes to a total of 6.5 %. The above stated fund is colleceted and managed by the ESIC.
What is ESI & What is ESIC?
ESI is Employee’s State Insurance which is a self financing social security and health insurance scheme for employees in India. The employees who are registered under the ESI Scheme are entitle for Medical Treatment for them and also for the Dependents of the Registered Employees.
Further, there is a provision for availing benefits on Disablement or Permanent disablement & even on Death. ESI Act 1948 is the governing statute for ESI & under which the Employee’s State Insurance Corporation manages the Fund. ESIC is an Autonomous corporation falls under Ministry of Labour and Employment.
ESI Registration Process
Step 1: Submission of Form 1 along with the above required documents.
Step 2: Verification of the submitted Form and Documents.
Step 3: Grant of Certification. A 17 digit unique identity code issued.
Step 4: Employees who are subscribed, will get a unique ID Card.
Step 5: Now employees added, list to be informed to the authority.
When ESI is mandatory for Organisations?
As already stated, every organisation which has more than 20 employees, it is mandatory to register under ESI scheme. It is mandatory that every organisation grows upto 20 employees are at a mandatory to get registered under the scheme within one month from the date of reaching 20 employees. Even small organisations below 20 employees can also register under ESI Scheme voluntarily.