Employee’s State Insurance (ESI) is a self-financing scheme for Indian workers which covers health insurance and social security. ESI functions as an independent corporation and comes under Ministry of Labor and Employment in India. The ESI Corporation thus manages the funds which regulated by the guidelines and regulations of the ESI Act. 1948. This act monitors the provision of cash and medical benefits to employees and their families through their comprehensive network of hospitals and dispensaries throughout India.
Benefits of ESI Registration for both Employer & Employee
Employees registered under the ESI scheme are entitled to a range of benefits. Employees and their families can avail medical treatment and attendance including not only medical but surgical and obstetric treatment as well. Supply of medicines, super specialty consultations, etc. can also be availed. Sick pay benefits also included. Thus, it advised for employees to register under ESI scheme.
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ESI Registration Procedure for both Employer & Employee
Registration of Employer:
Any employer having more than 10 employees is mandatorily require to take up the ESI Registration.
Within 15 days of submission of Employer’s registration form (Form-01), the company or firm is expected to obtain an Identification number or Code Number from the Regional office. This figure will be used in correspondence related to the scheme. Form3 accompanies Form 1.
- Documents are about the establishment of the company.
- Evidence supporting date of commencement of production/business.
- List of partners, stakeholders, directors along with necessary information and proof of address.
- Copy of PAN
- Identity proof like voter id/passport
- List of employees
Registration of Employee:
At joining the Private Limited Company, an employee required to fill the Declaration form i.e. Form1 along with a copy of the family photo which the employer will be submitting at the ESI branch office.
Within 3 months a permanent photo ID is provided to the employee and will be provided an insurance number for identification purpose under the scheme.
Once registered, the registration can transfer if the employee switches company.
Wage Limit under ESI Registration:
- Employees earning 21,000 INR per month or less are applicable for ESI contribution. Employees with higher wages are exempt.
- Wage limit for Employees with ‘Disability’ is 25000INR per month.
- Employee contribution: 1.75% of total salaries.
- Employer Contribution: 4.75% of total wages.
Provident Fund Meaning and Registration Procedure
To provide financial stability and security to employees when they are temporarily or no longer fit to work, the Parliament enacted the Employee’s Provident Fund Scheme (EPFS) 1952. The central government trust manages these funds, and employees are require to contribute a part of their salary to it every month during their employment tenure.
An establishment with less than 20 employees can voluntarily opt for PF registration to protect employee’s benefits. However, Companies with more than 20 employees compulsorily have to register under EPFS.
PF Registration Process:
- A detailed application form called ‘Performa of coverage’ and form 5A with Annexure 1 has to filled while registering the company online.
- After that, a temporary PF registration number allotted, and an employer has to submit all concerning documents online.
- After that, the PF authorities carry out an inspection of the premises and verify the documents submitted online.
- Once they are satisfie, a PF allotment letter will grant.
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Please help me out with ESI and PF registrations at the earliest.