Employee State Insurance is an insurance and social security scheme for Indian workers. ESI Act 1948, which created ESI Corporation is an autonomous corporation under Ministry of Labour and Employment.
ESI offers medical care or insurance benefits for the insured employees and their family members via its branches, dispensaries, and hospitals throughout India. Your employees get medical care and treatment for themselves and for their families.
For small business registration, ESI Scheme brings comprehensive employee security that protects your employees during sickness, injury, and disability.
Employees registered for ESI will get high-quality medical facilities like medical assistance, surgical support, obstetric treatment, free drugs, ambulance services, super-specialty consultation, etc. Also, registered patients are entitled to sick pay benefits.
All establishments employing 10 or more employees at any point of the year has to get registered under ESI Act, provided the salary payable to at least one employee is less than Rs 21,000. Once, registered the firm is assigned a 17-digit unique identification code.
Business covered under ESI, must file an annual return reflecting changes (if any) through the previous year. Return of contributions should be filed once every six months attaching copy all ESI contributions during the filing period.
For employees with wages/salary of Rs 21000 or less, the employer contributes 4.75 percentages and the employee contributes 1.75 percentages, to the total premium from his/her wages/salary.
The employer must pay all ESI contributions to a bank account authorized by the ESI Corporation within 15 days of the last day of the month in which ESI payment is due.