Navigating ESI Registration: Can We Simplify the Process and Understand Coverage Rules?

Dear Amit, I have a few doubts about ESI registration.

ESI Registration Process

1. Can we register through the ESI portal and obtain a temporary ID card number for employees instead of manually filling out FORM-01 for registration and submitting the Employees' Declaration form directly to the ESI department? Please provide me with the complete ESI registration process through the portal.

Coverage Under the ESI Act

2. We are planning to cover only housekeeping, drivers, and security under the ESI Act, totaling around 5 employees. Other employees are covered by private health insurance and accident insurance. Is it necessary for a minimum of 10 employees to be covered under this act?

Salary and ESI Coverage

3. When an employee's basic salary increases to more than 15,000, is it mandatory to terminate ESI coverage as per the act, or can we continue with ESI coverage?

Thanks in advance,

Nagaraj

1. Sir, you can get your unit covered under the ESI Act, 1948, as per the online procedure laid down by ESIC. For the online procedure, you can seek guidance from the website of ESIC or contact the appropriate Social Security Officer/Regional/Sub/Divisional Office of ESIC in your area.

2. Once the unit is covered under the said Act, all employees receiving wages up to Rs. 15,000 per month are required to be covered under the Act. There is no option in this regard.

3. If the wages of any covered employee exceed Rs. 15,000 per month, then starting from the next contribution period, the said employee will not be eligible for coverage under the Act. Coverage under the ESI Act, 1948, is statutory and not optional.