PF & ESI Registration

At Online CA India, our team of experts is dedicated to assisting businesses in navigating the complexities of PF & ESI registration. With our comprehensive understanding of regulatory requirements, we ensure a seamless and hassle-free PF & ESIC registration online process.

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ESI Scheme

ESI (Employee State Insurance) operates following the ESI Act of 1948. It is a government scheme designed to provide social security benefits to workers. The administration of this scheme falls under the purview of the Employee State Insurance Corporation (ESIC). Employers must formally register their establishments with ESIC and furnish worker details for inclusion in the program. Complying with the intricate regulations stipulated by the government can pose a significant challenge for employers. IndiaFilings’ ESI experts are available to assist you with these matters.

Definition and Scope of Establishments Under the ESI Act

The Employee State Insurance (ESI) Act categorises an establishment as any organised entity involving men or women, regardless of its physical location. This includes retail outlets and commercial shops, which are mandated to enroll in the ESI scheme if they employ 10 workers or 20 in certain states, provided these employees earn up to Rs. 21,000 per month, or Rs. 25,000 for individuals with disabilities.

Who is eligible for ESI Registration?

According to the official notice, the following state government-affiliated entities fall under the scope of the ESI Act according to Section 1(5):

Retail outlets
Dining establishments or hotels solely involved in sales
Movie theatres, including preview facilities
Establishments related to road transportation
Newspaper organisations (exempt from the Factory Act)
Private healthcare facilities
Private educational institutions
Casual workers employed by Municipal Corporations or Bodies

These entities are required to register with the ESIC if they have a workforce of 10 or more individuals. Furthermore, the Central Government has expanded the ESI Act’s Section 1(5) coverage to include the following central government-related entities:

Retail outlets
Hotels and dining establishments
Establishments related to road transportation
Cinemas, including preview theatres
Newspaper organisations
Businesses involved in:
Insurance
Non-Banking Financial Companies (NBFCs)
Port trusts
Airport authorities
Warehousing

For these central government-associated entities, mandatory ESIC registration is required when employing 20 or more individuals.

Eligibility Criteria for ESI Registration

The eligibility criteria for ESI registration are as follows:

Employees in establishments, factories, or shops with more than 10 employees are eligible for ESI benefits under Section 2(12) of the ESI Act, 1948.
All workers and their dependents across various industries and sectors can receive ESI medical benefits from ESIC-run hospitals and dispensaries.

Women employees earning less than Rs. 21,000 per month and individuals with disabilities earning less than Rs. 25,000 per month are eligible for maternity benefits under the ESI Act. This includes medical and cash benefits, as well as paid leave for various conditions such as pregnancy (pre and post-delivery), medical termination, miscarriage, and adoption.

Advantages of ESIC Registration

ESIC registration offers employees a comprehensive suite of benefits, safeguarding their health, income, and family. Key benefits include:

Sickness Benefit: Employees are entitled to receive 70% of their wages for up to 91 days a year during certified sickness periods.
Extended Sickness Benefit: Employees can receive an extended benefit at 80% of their wages for up to two years for certain long-term and severe diseases.
Enhanced Sickness Benefit: Full wage compensation is provided for employees undergoing sterilisation, with 7 days for Vasectomy and 14 days for Tubectomy.
Medical Benefits: Comprehensive medical care is available to employees and their families, ensuring their well-being.
Retired Medical Benefits: Retired employees and their spouses are eligible for continued medical benefits upon paying an annual premium of Rs. 120.
Maternity Benefit: Pregnant women are entitled to total wages as maternity benefit for 26 weeks, extendable by a month, ensuring financial stability during childbirth.
Dependents’ Benefit: In the unfortunate event of an employee’s death due to employment injury, 90% of the employee’s wages are provided to their dependents as a monthly payment.
Temporary Disablement Benefit: Employees suffering from an employment injury receive 90% of their wages as a benefit until the disability lasts.
Permanent Disablement Benefit: In cases of permanent disability, employees are entitled to a monthly payment of 90% of their wages based on the loss of earning capacity as assessed by a Medical Board.
Funeral Expenses: A fixed sum of Rs. 15,000 is provided to the dependents or the individual conducting the last rites, assisting with funeral expenses.