Employees’ State Insurance Act, 1948

Contents:- ESI Coverage Registration Process Required Documents Enrolment of IP (Insured Person) / IP Registration Contribution Calculation Submissions Benefits

Coverage Any organisation (Factory, Shops & Commercial Establishment, Educational Institute, Clinic), which has employees of 10 & above in any month of the calendar year are covered under Employees’ State Insurance Act, 1948. If the total employee strength is above 10 (Including the contract employees) then the organisation has to enrol for ESI irrespective of the number of coverable employees.

Registration Process Now ESI registration made simple process of registering online. All you have to do is browse to the URL https://www.esic.in/ESICInsurance1/ESICInsu rancePortal/ Portal_Login.aspx and select the option signup. On selection of the link it will lead to the other page for registration.

Registration Page

Registration Page After entering the details and clicking the submit button then it will lead to another page to enter full details of the organization. On submission of the details the enrolment number along with the login details will be sent to the registered mail ID.

Documents required for ESI Registration Proof of Address (Copy of the Bank Statement/Rental agreement / Govt certificates/ Electricity Bill / Water bill, etc...) Copy of Company PAN Card Copy of AoA & MoA along with Incorporation Certificate (Only Incorporation Scan copy is enough) for Ltd. Companies and partnership deed for partnership firms and registration certificate for proprietorship firms List of Directors for Ltd companies / List of partners for partnership firms. Scan copy of Blank Cheque (For Proof of Account) PAN Card copy of Both the directors Address proof of both the directors Authorisation Letter Covering Letter Proof for Date of Setup of the organization Copy of Shops & Commercial Establishment Registration Any other registration certificates Copy of attendance register of latest 2 months Copy of salary statement of latest 2 months

Enrolment of IP (Insured Person) / IP Registration. Any enrolment of the IP shall be done online only. Once we login to the ESIC page then we will find as shown

On the above screen shot we have to select the option of register new IP. Note Once any employee is registered as IP in any organisation then we can use the same IP Registration number here. We should not register once again. If you are registering the new IP then we have to select the new IP so it will prompt as shown.

On selection of new IP registration the following screen will be displayed and the personnel details along with nominee details shall be updated. In the same window we have to select the Closest ESI dispensary to avail the medical benefits

Contribution Employees covered under ESI act Any employee who is earning the gross salary of Rs. 15000/- or less is covered under the ESI act. If any employee who is covered under the ESI and due to the increment if his gross salary increases beyond 15000/- then that particular employee shall not exempted immediately. Any employee shall be exempted from ESI contributions either in the month of April or October. For example if any employee gets increment in the month of April and if it is beyond 15000/- then the same employee shall be exempted for April month return. If at all we contribute the amount for April and if there is increment in the month of May then we have to continue the contribution till September month. The same way of any employee gets hike in the month of October month then he/she shall be exempted for the same month or else ESI has to be contributed till the month of March.

ESI Calculation ESI is calculated on the fixed gross wages for maximum of Rs. 15000/-. Any amount which is paid monthly shall be considered as gross wages. Even if the incentives paid on monthly then ESI shall be calculated on the incentives also.   The calculation of ESI is as follows EE Contribution of 1.75% ER Contribution of 4.75% Total Contribution is 6.5%

Return Submission ESI return shall be submitted online only. Return submission the payment shall be remitted before 20th of subsequent month. No need of any manual returns for ESI.

Benefits Medical Benefits Full medical care is provided to an Insured person and his family members from the day he enters insurable employment. There is no ceiling on expenditure on the treatment of an Insured Person or his family member. Insured persons and the family members are entitled to avail treatment in ESI Dispensary/Hospital/Diagnostic Centre and recognised institutions, to which he is attached such as:- Outpatient treatment Domiciliary treatment by visits at their residences. Specialists Consultation. In-patient treatment(Hospitalisation) Free supply of drugs dressings and artificial limbs, aids and appliances. Imaging and laboratory services. Integrated family welfare, immunisation and MCH Programme and other national health programme etc. Ambulance service or re-imbursement of conveyance charges for going to hospitals, diagnostic centres etc. Medical Certification and Special provisions.

Sickness Benefits Sickness Benefit in the form of cash compensation at the rate of 70 per cent of wages is payable to insured workers during the periods of certified sickness for a maximum of 91 days in a year. In order to qualify for sickness benefit the insured worker is required to contribute for 78 days in a contribution period of 6 months.   Extended Sickness Benefit (ESB): ESB is extendable upto two years in the case of 34 malignant and long-term diseases at an enhanced rate of 80 per cent of wages. Enhanced Sickness Benefit: Enhanced Sickness Benefit equal to full wage is payable to insured persons undergoing sterilization for 7 days/14 days for male and female workers respectively.

Maternity Benefit (MB): Maternity Benefit for confinement/pregnancy is payable for three months, which is extendable by further one month on medical advice at the rate of full wage subject to contribution for 70 days in the preceding year. Disablement Benefit Temporary disablement benefit (TDB): From day one of entering insurable employment & irrespective of having paid any contribution in case of employment injury. Temporary Disablement Benefit at the rate of 90% of wage is payable so long as disability continues. Permanent disablement benefit (PDB): The benefit is paid at the rate of 90% of wage in the form of monthly payment depending upon the extent of loss of earning capacity as certified by a Medical Board

Dependants' Benefit (DB) DB paid at the rate of 90% of wage in the form of monthly payment to the dependants of a deceased Insured person in cases where death occurs due to employment injury or occupational hazards.  Other Benefits Funeral Expenses: An amount of Rs.10,000/- is payable to the dependents or to the person who performs last rites from day one of entering insurable employment.  Confinement Expenses: An Insured Women or an I.P.in respect of his wife in case confinement occurs at a place where necessary medical facilities under ESI Scheme are not available.

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