Certificate of Registration

  • Act/Rule/Legislation

  • Online Link to Act/Rule/Legislation

  • Initial Setup or Ongoing Maintenance

    Initial Setup only

  • Filing and Maintenance Requirements

    • An employer is required to obtain registration of its establishment under the State Insurance Act and to remit statutorily prescribed contributions for each wage period in respect of the whole or part of wages payable to the employees towards their insurance. Currently, the employee’s contribution rate is 1.75% (one point seven five percent) and the employer’s contribution rate is 4.75% (four point seven five percent) of the wages paid/ payable in respect of the wage period for the eligible employees. The employer is liable to pay both, the employer’s contribution as well as the employee’s contribution to the relevant competent authority.

    • It is the responsibility of the principal employer to pay the contributions in respect of both, the employees directly employed by him and also in respect of employees employed by or through a contractor. The amount of employer’s as well as employee’s contribution paid or payable by an employer in respect of employees employed by or through a contractor can be recovered by the employer from the contractor.

  • Penalty

    • Any person who fails to obtain registration of its establishment, fails to file returns of contributions or fails to maintain records and registers in contravention of the State Insurance Act, is punishable with (i) imprisonment extending up to 1 (one) year; or (ii) with fine extending up to Rs. 4,000 (Rupees Four Thousand only); or (iii) both.

    • Further, in the event the offence is committed by a company, every person who, at the time of the offence, was in charge of the company shall be liable for the offence and if it is proved that the offence has been committed with the consent or connivance of or attributable to any neglect on part of any director, manager, secretary or other officer, they shall also be deemed guilty of that offence.

  • Application Guidelines / Responsible Persons / Comments

    • The State Insurance Act applies, amongst others, to every establishment where 20 (twenty) or more persons are employed. However, only employees earning wages/ salaries less than Rs. 15,000 (Rupees Fifteen Thousand only) per month are covered by this enactment.

    • The application of the State Insurance Act to various factories/ establishments depends on whether the appropriate State Government has notified the areas where such factories/ establishments are located, as areas to which the State Insurance Act will apply.