ESI is designed in such a way that it provides socio-economic security for the employees as well as their dependents. Our experts at ICI can help your establishment register under ESI, prepare ESI workings and file returns through our easy to follow virtual processes.
ESI stands for Employee State Insurance. It is a self-financing social security scheme managed by the government of India through an autonomous authority – Employee State Insurance Corporation that falls under the jurisdiction of the Ministry of Labour and Employment. It aims to provide medical & monetary benefits to Indian employees and their dependents who are employed at an establishment or factory. The scheme is targeted to provide benefits to low income level employees of the Indian industry.
The ESIC Act of 1948, mandates shops, movie theatres, hotels, restaurants, newspaper establishment, educational institution, motor transport establishment, etc. to compulsorily register under the ESIC Act if they have more than 10 employees earning less than Rs. 21,000 per month. In some states, the employee limit is 20.
A total of 4% of the gross salary of an employee has to be deposited in the ESI account.
Out of 4%, 3.25% is contributed by the employer and 0.75% is contributed by the employee.
Employers have to strictly deposit the money deducted from the employee’s wages in the ESI account of the employee. Non-payment or frauds by employers are liable to imprisonment up to 3 years and a fine of up to Rs 5,000. ESI is for the benefit and welfare of the employees and it is the responsibility of the employer to ensure that this purpose is fulfilled.
|April to September||11th November|
|October to March||11th May|
An establishment should register within 15 days from the date it becomes eligible. Failure to do so shall attract a penalty of ₹ 10,000 on the employer.
Yes, to recognize each employee, the authority assigns a unique identification number to every worker.
AT ICI, we have a team of experts who shall file your ESIC application without any mistake. We ensure that your return filing is accurate and on time, so that you don’t have to face any legal or monetary penalties. We have a smooth process incorporated at our end to tackle the time consuming and exhaustive registration process.
In case of delayed payment, an employer has to pay simple interest at 12% on the amount of contribution for each day of delay.
It takes 10-15 days to get your ESI registration if the application form & documents submitted are error-free. In some cases, the registration may be delayed from the end of the department.
Our ESI registration and filing service are completely online. And so we can provide service to any establishment all over India.