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ESIC REGISTRATION

ESIC REGISTRATION

What is ESIC Registration?

ESIC stands for Employees’ State Insurance Corporation. ESI is a self-financing health insurance and social security scheme mainly established for employees earning Rs. 21000 or less per month.

Enacted by the legislature, Employees’ State Insurance Act, 1948, has introduced several schemes to provide various medical as well as cash benefits to employees and their family.

As per the provisions of Employees’ State Insurance Act, 1948, it is mandatory for all the companies with ten or more than ten employees to obtain ESIC registration.

ESI is established under the Ministry of Labour and Employment, Government of India.

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What is ESIC Registration?

ESIC stands for Employees’ State Insurance Corporation. ESI is a self-financing health insurance and social security scheme mainly established for employees earning Rs. 21000 or less per month.

Enacted by the legislature, Employees’ State Insurance Act, 1948, has introduced several schemes to provide various medical as well as cash benefits to employees and their family.

As per the provisions of Employees’ State Insurance Act, 1948, it is mandatory for all the companies with ten or more than ten employees to obtain ESIC registration.

ESI is established under the Ministry of Labour and Employment, Government of India.

Contributions of entities to the ESI

Whether it’s an employee or employer, both are required to contribute to ESI to be eligible for availing the benefits provided under the scheme.

The contributions made by them are as follows:

Contribution of Employees

Employees need to contribute 1.75% of their salary to the government. However, from 1st July 2019, the ESI contribution will reduce to 0.75%.

Contribution of Employers

The total contribution from employers should be 4.75%, which is going to be reduced to 3.25% from 1st July 2019.

For which establishments, ESI registration is mandatory?

We have enlisted below some establishments for which ESI registration is obligatory. They are as follows:

  • Shops
  • Cinemas
  • Hotels or restaurants providing services but not involved in any manufacturing activity
  • Roadside Motor Transport Establishments
  • Newspaper Establishments
  • Medical Institutions
  • Educational Institutions (Private)

Benefits of obtaining ESIC online registration in India

ESIC was introduced to provide several benefits to the employees working under specific establishments. Some of them are as follows:

  • Medical benefits to the employee and his/her family members;
  • Maternity benefits to pregnant women (paid leaves)
  • In any year, if the employee has any certified illness lasting for a maximum of 91 days, then he will be provided with sickness benefits at the rate of 70%.
  • If the employee dies during the working hour, then 90% of his/her salary would be given to his/her dependent every month.
  • The same applies in the case of any disability.
  • Medical expenses for old age care.
  • Funeral expenses.

Documents Required

  • Copy of PAN;
  • Copy of GST registration;
  • Form 1- Employer’s Registration;
  • List of employees along with their date of joining and rate of salary;
  • MOA & AOA of the company;
  • Certificate of Incorporation;
  • Partnership deed, applicable in case of Partnership;
  • Copy of Factory/Shops & Establishment Act Registration;
  • Latest bank statements;
  • 2 passport-sized photographs;
  • Declaration form of each employee;
  • Copy of any other registrations as required.

FAQ

What is ESI Scheme?
ESI is a comprehensive Social Security Scheme designed to provide social protection to the employees against sickness, disablement and death due to employment injury and other events. The fund is self financing where employer and employee contribute on monthly basis and the amount can be utilised towards reimbursing expenses incurred on health of employee and his family members.

Is it Mandatory for the employer to register under ESI Scheme?
Yes.It is the Statutory responsibility of the employer to register the Factory/Establishment under the ESI Scheme within 15 days from the day of its applicability.

How can employees get registered under the Scheme?
When an employee joins insurable employment, he has to fill in a Declaration Form (form1) and submit a family photo in duplicate to the employer.
The employer then submits the documents to the ESI Branch Office.
The employee is then allotted an insurance number, the same number is then used for the purpose of his identification under the scheme. He is further issued a temporary identity card for availing medical benefit for self and family for a period of three months.
Thereafter, he is provided with a permanent photo identity card. A person once registered need not register again in case of change of employment. The same registration can be transferred from one place to the other.
What are the benefits available to eligible employees and their family members under ESI Scheme?
Employee gets full medical care during the period of his incapacity for restoration of his health and working capacity.
He get financial assistance to compensate the loss of his/ her wages during the period of his abstention from work due to sickness, maternity and employment injury.
Provision of Artificial Limbs, hearing aids, etc as a part of medical treatment when required.
Medical care benefit is extended to his/her family members also.
In case of death of insured employee due to employment injury, the spouse, widowed mother and children are entitled to Dependent’s benefit.
How does the ESI scheme help employer?
There are a couple of benefits that employer gets on getting Employee State Insurance Registration for his business. *The employer gets his employee protected by ESIC in all respects, so the employee can concentrate on his work.

The employer is relieved from providing any medical care to the employee and his family.
Employer is relieved from payment of Maternity Benefits.
Employer is relieved from payment of any compensation under the Workmen’s Compensation Act.
Who must register with Employees State Insurance Corporation?
Any entity, be it a government office, public sector or private sector entity which has 10 or more employees needs to get registered under the Scheme. The application must be filed within 15 days of reaching the employee count of 10.
Where the employer wishes to provide the benefits to his/her employees, he may voluntarily apply for registration.
Do I need to be present in person during the ESI registration process?
You don’t need to be present in person during any stage. The entire procedure will be carried out by our experts.

How much time does the Employee State Insurance Registration process takes?
Usually the entire process takes a week’s time. Depending on the work load with government department the process might take longer time. Make sure that you keep the required documents ready so that we can complete the entire process in least time.

What is the contribution rate to the ESI fund?
Eligible employee needs to contribute in total 1.75% of their salary (basic+allowances).
Registered Employers need to deposit 4.75% of salary paid(basic+allowances) to ESI corpus every month.

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