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ESI Registration

ESI Registration

Employee State Insurance or ESI is a scheme commenced by the Government of India to offer medical, monetary, and other advantages to workers. ESI is managed by an autonomous authority – Employee State Insurance Corporation – which lies under the jurisdiction of the Ministry of Labour and Employment.

By law, any company that has more than 10 employees mandatorily needs to have ESI. In some states, the number of employees is 20. For employees earning more than ₹21,000 per month, including basic salaries and dearness allowance, the insurance is deducted from their pay.

Also, taxpayers with a turnover of less than ₹1.5 crore can opt for the composition scheme to get rid of tedious GST formalities and pay GST at a fixed rate of turnover.

Trademark Registration

The interview for the ESIC recruitment is completed on December 1, 2022, and December 2, 2022. The Employees' State Insurance Corporation (ESIC) was accepting applications on a contractual basis for a year for the positions of Senior Resident and Senior Resident against GDMO under several departments. For the listed positions, there were a total of 83 open positions. 45 years of age is the upper age restriction for applicants to the ESIC recruitment 2022. Interviews were conducted to choose candidates.

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Definition of Establishment under the ESI Act

The Employees' State Insurance Act, 1948 (ESI Act) defines an establishment as any premises (or its precincts) wherein ten or more employees are employed for wages.

This includes factories but also other types of establishments, such as:

  • Hotels, restaurants, and boarding houses
  • Cinemas, theatres, and other places of public amusement
  • Shops, commercial establishments, and places of business
  • Educational institutions
  • Medical institutions
  • Transport undertakings
  • Warehousing establishments

Here are some of the important things to keep in mind about the definition of establishment under the ESI Act:

  • The premises must be used to carry on some economic activity.
  • There must be ten or more employees working on the premises for wages.
  • The employees must work on the premises for at least 240 days in the preceding 12 months.

Premises meeting all these criteria will be considered an establishment under the ESI Act. The ESI Act also provides for the extension of the coverage of the Act to establishments with less than ten employees. This extension is done by the Central Government or the State Government, as the case may be, by notification in the Official Gazette.

Benefits of ESI Registration

  • Medical Aid : rom the very first day of employment, ESI Registration:  members and their families are entitled to enjoy the benefits of complete medical care and insurance.:
  • Maternity Aid : regnant women are allowed maternity benefits that are payable up to twenty-six weeks. This period can be extended by 30 days on medical advice. To qualify for maternity benefits, employers are required to contribute their wages for 70 days in the preceding two contributions periods.:
  • Disablement Benefits : isabled employees can get 90% of their monthly salaries as disablement benefits.:
  • Sickness Benefits : bsence from work during illness can be taken for a maximum of 91 days per year along with 70% of the monthly wages.:
  • Dependent Benefits: In the unfortunate event of the demise of an employee during employment, the dependents of the deceased will receive 90% of his/her monthly salary.:
  • Funeral Expenses: The deceased employee's family is entitled to an additional amount of ₹10,000 towards funeral expenses.:
  • Confinement Expenses: In the case of confinement of an insured woman or wife of an employee occurring in a place with no medical facilities under the ESI scheme, confinement expenses can be availed.:

In addition, some need-based benefits::

  • Vocational Rehabilitation: Permanently physically challenged, insured employees are entitled to undergo vocational rehabilitation training at VRS.:
  • Physical Rehabilitation: Available to employees in the case of physical disablement due to an employment injury or occupational hazards.:
  • Old Age Medical Care: An annual payment of ₹120 ensures medical care benefits for retiring ESI employees or for those who are opting for VRS/ERS.:
  • Extended Sickness Benefits: ESI members suffering from chronic diseases can avail the extended sickness benefit for up to 2 years, once the standard sick leave of 91 days has expired.:
  • Enhanced Sickness Benefit: Registered ESI members willing to undergo sterilisation procedures are eligible for enhanced sickness benefits of 100% of their daily average wages. This benefit also allows a recuperating period of 7 days for vasectomy and 14 days for tubectomy from the date of surgery or admission in the hospital.:

Eligibility for ESI Registration in India

The general rule to be eligible for (Employees' State Insurance) ESI registration is to have 10 or more workers. But in some regions, ESI is applicable only if there are more than 20 employees.

Other eligibility criteria that need to be fulfilled are:

  • Any employee whose gross salary is up to ₹21,000 per month can avail of this with the help of the employer
  • Establishment registered with EPFO
  • The contribution to ESI is 6.5% of the gross salary. It is divided as:
    • 4.75% by the employer
    • 1.75% by the employee
  • For industrial units, where there are chances of occurrence of injury or health issues at the business premise, all employees with a salary less than ₹21,000 compulsorily need to have ESI.

Rate of Contribution Under ESI

Under the Employees' State Insurance (ESI) Act 1948, the contribution rate is 3.25% of the wages paid to employees. The contribution is shared equally by the employer and the employee.

 

The contribution rate was reduced from 4% to 3.25% in June 2019. The reduction was made to provide relief to employers and employees.

 

The wages for ESI contribution are defined as the basic wages plus dearness allowance (DA). The DA is the amount paid to employees to compensate for the rising cost of living.

 

The ESI Act provides for several benefits to insured employees, such as:

 
  • Medical care
  • Cash benefits for sickness, maternity, and disablement
  • Pension for old age and death
  • Disablement benefit
  • Funeral expenses
 

The ESI Act is a social security scheme that provides financial assistance to needy employees. The contributions of employers and employees fund the scheme.

Documents Required for Online ESI Registration

To register for ESI the employer has to submit the following documents along with the application:

  • The registration certificate or license issued by - Shops and Establishments/Factories Act(Required for ESI online registration)
  • Address proof
  • Rent receipt of the occupied premises, mentioning its capacity
  • Copy of PAN card
  • Copy of bank statement
  • Photocopy of the last building tax/property tax receipt
  • Memorandum and Articles of Association or Partnership Deed registration or Trust Deed registration - depending on the applying entity
  • Photocopy of registration
  • Certificate of commencement of production
  • Registration No. of CST/ST/GST
 

Note: For ESI filings, a monthly pay sheet is required for computing the contribution amount for each employee.

Why Evolix for Trademark Registration?

Following is the documents required for Startup India Company Registration:

  • 1: We conduct a thorough Trademark Search of the TM Directory.
  • 2: We prepare the Authorisation Letter, so our experts can file for Registration on your behalf.
  • 3: Our experts or lawyers guide you with the Trademark Classes you need to apply under.
  • 4: Our experts will file & apply with the Trademark Registrar.
  • 5: We constantly provide you with updates until the process is complete.
Documents required for Trademark Registration

The following documents should be submitted for trademark registration in India

  • Image of the trademark
  • Power of Attorney(drafted by us)
  • User affidavit ( only if prior user of trademark)
  • TM-A form (drafted by us)
  • Id Proof of the applicant along with Address.

Apart from the documents, to start online trademark registration in India, the following preliminary details must be provided:

  • Applicant name: The name of the person, business, or organisation submitting an application to register a trademark
  • Business Type: Indicate the kind of business organisation, such as a private limited company, partnership, MSME, startup or sole proprietorship
  • Objectives of the Business: Give an overview of your company's nature of business and operations under the trademark
  • Name of Brand/Logo/Slogan: Make sure to specify the name, logo, or slogan you plan to trademark
  • Registration Address: Provide the official address of the organisation submitting the trademark application