ESI is an autonomous organization under the Ministry of Labor and Employment, Government of India. “India’s biggest Platform.” Connect with our Experts.
GET YOR EMPLOYEE STATE INSURANCE Hassle Free.
EMPLOYEE STATE INSURANCE with Auriga Accounting
Auriga Accounting has a team of registration experts who can provide complete guidance to EMPLOYEE STATE INSURANCE.
Our team of experts will get in touch with you and collect all necessary documents and details
We fill out and file your application for registration
Your EMPLOYEE STATE INSURANCE
Auriga Accounting has a team of registration experts who can provide complete guidance to EMPLOYEE STATE INSURANCE.
Our team of experts will get in touch with you and collect all necessary documents and details
We fill out and file your application for registration
Your EMPLOYEE STATE INSURANCE.
The Employee’s State Insurance (ESI) is a comprehensive health insurance and social security scheme designed for Indian workers. It operates as a self-financing system and is overseen by an independent corporation under the purview of the Ministry of Labor and Employment in India. The ESI Corporation, guided by the provisions of the ESI Act of 1948, manages the funds and ensures the effective implementation of the scheme.
The primary objective of the ESI is to provide cash and medical benefits to employees and their families. This includes coverage for medical expenses, sickness benefits, disability benefits, maternity benefits, and dependent benefits. The scheme operates through a wide network of hospitals and dispensaries strategically located across India.
Under the ESI scheme, both the employer and the employee contribute a certain percentage of the employee’s salary towards the ESI fund. These contributions are used to finance the various benefits and services provided to the insured individuals and their dependents. The scheme is mandatory for employees earning below a specified wage threshold, ensuring a wide coverage of workers across different industries and sectors.
The ESI Act of 1948 serves as the legal framework governing the functioning of the ESI scheme. It sets out the rights and obligations of the employers and employees, as well as the procedures and regulations related to contributions, benefits, and dispute resolution.
The ESI Act mandates that factories with a Pan India presence must have a minimum of 10 employees for registration. In the case of establishments, each station must have a minimum of 10 to 20 employees, as per the requirements of the ESI Act.
When selecting the Branch Office from the Drop Box, employers have the freedom to choose any Branch Office that is closest to their unit. Similarly, when selecting the Inspection Division from the Drop Box, employers can choose any Inspection Division as per their preference.
For manpower suppliers, security agencies/contractors, and government contractors, the registration process involves paying an advance contribution for six months after the generation of a Code Number. The calculation for the advance contribution is as follows:
(Number of employees earning up to Rs. 21,000 per month) x (minimum wages) x 6 x 6.5%.
REGISTRATION OF EMPLOYEE
Upon joining an organization, an employee is required to complete a Declaration form, known as Form-1, and submit a copy of their family photo to the employer, who will then submit it at the ESI branch office. Within three months, the employee will receive a permanent photo ID, which serves as their identification under the ESI scheme. Additionally, they will be provided with an insurance number for identification purposes.
WAGES LIMIT IN EMPLOYEE STATE INSURANCE (ESI)
The wage limit for ESI registration is as follows: Employees earning 21,000 INR or less per month are eligible for ESI contribution, while those with higher wages are exempt. However, for employees with a ‘Disability,’ the wage limit is set at 25,000 INR per month.
Under the ESI scheme, employees are required to contribute 1.75% of their total salaries, while employers contribute 4.75% of the total wages.
Auriga Accounting is an online platform that provides legal and professional services in India, including assistance with ESI registration. Here’s how Auriga Accounting can help in registering ESIs:
Auriga provide expert services which can get your new business off to a flying start. We are Compliance and finance officers for your business. Here you get simple and affordable online company registration and range of essential services. A world class technology – driven platform, offering end to end service from startup to well established firm.
By continuing past this page, you agree to our Terms of Service,Cookie Policy,Privacy Policy,Refund Policy and Content Policies.
© AURIGA ACCOUNTING PRIVATE LIMITED | 2021 | All Rights Reserved
