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ESI Registration
ESI Registration

ESI Registration:-

Employees’ State Insurance Corporation is an Indian social security organization body created by the law under the Ministry of Labour and Employment, Government of India, which provides medical and monetary benefits to the workers of the organized sector of India. It is a statutory responsibility of the employers or organizations to register their business under the ESIC within 15 days from the date of its applicability to them. ESI Registration is the process by which every employer and its employees are identified and registered under the scheme.

ESI REGISTRATION ELIGIBILITY

Any organization having more than 10 employees or more than 10 employees (20 employees in some states) having wages of up to Rs. 15,000/- are required to mandatorily register itself with the ESIC within 15 days from the date of its applicability.

ESI is a self-financing health insurance scheme. Therefore, it funds the benefits under this scheme from the contributions that are from employees and their employers at a fixed percentage of wages. The covered employees contribute 1.75% of the wages to the ESIC, and the covered employers contribute 4.75% of the wages, payable to their employees. Employees earning up to Rs.100/- a day are not obligated to pay their share of contribution. Employers are liable to pay the total ESIC contribution (employer portion and employee portion) in respect of every employee. Employer need to deduct the employees’ wages bill at the rate prescribed, and the same should be deposited with the ESIC within 21 days of the last day of the month in which the contributions fall due.

DOCUMENTS REQUIRED FOR ESI REGISTRATION

The documents required while filling the registration form are:

    Registration Certificate issued either under the:

  1. Certificate of Factories Act,

  2. Certificate of Shops and Establishment Act

  3. Certificate of Incorporation in case of a company, and partnership deed in case of a partnership firm

  4. Copy of Memorandum of Association (MOA)

  5. Copy of Articles of Association (AOA)

  6. Address proof of the establishment (utility bills or rental agreement)

  7. List of all the employees working in the establishment

  8. PAN Card of the organization as well as all the employees working in the establishment

  9. The remuneration details of all the employees

  10. A cancelled cheque of the bank account with preprinted name of the company on it

  11. List of Directors of the entity

  12. List of the shareholders of the entity

  13. A register mentioning the attendance of the employees

ESI REGISTRATION PROCESS

  • STEP 1: LOG IN TO ESIC WEBSITE

      First the employer needs to register himself on the ESIC portal. To register, the employer needs to click on the “Employer Login” option on the home screen. On the next page, you need to click on the “Sign Up” button. After that the employer need to fill in all the details and then submit the form.

  • STEP 2: CONFIRMATION MAIL

      After successfully signing up to the portal, the employer will receive a confirmation mail sent to their registered mail id and mobile number. The email will have the details of username and password for registering as an employer and employee under the ESI scheme.

  • STEP 3: FORM-1 FOR EMPLOYER REGISTRATION

      Next log in to the ESIC portal by entering the username and password given in the email, this will redirect to the page having “New Employer Registration” option. Click on the New Employer Registration option and then select the “Type of Unit” from the drop-down list and then click on the submit button. The “Employer Registration – Form 1” will appear then the employer needs to fill all the required details correctly. The employer need to enter the details related to the unit of the employer, employer details, and organization or establishment details. Once all the related details are filled in the form by the employer, he needs to submit the form by clicking on the “submit” button.

  • STEP 4: PAYMENT FOR REGISTRATION

      After the submission of the ESI Registration Form, Form-1, the “Payment of Advance Contribution” page will open where the employer needs to fill the amount to be paid and select the payment mode.
      The employer will need to pay the advance contribution for 6 months.

  • STEP 5: REGISTRATION LETTER

      On the successful payment of six months advance contribution, the system generated Registration Letter naming (C-11) will be sent to the employer which will contain a 17 digit Registration Number issued by the ESIC department.
      The Registration Letter (C-11) is a valid proof of registration of the employer.

ESI BENEFITS FOR EMPLOYEES

    Employees registered with the ESI can have benefits of a range of medical and sickness under the scheme. The following six are the major benefits provided under the ESI Scheme:

  • MEDICAL BENEFIT:

      The employees registered under ESIC and their family members can avail the benefits from the day with full medical care. There is no upper limit set on expenditure on the treatment of an insured person or his family members. It also provide medical care to retired and permanently disabled insured persons and their spouses on payment of a token annual premium of Rs.120/-.

  • SICKNESS BENEFIT:

      Under the ESIC scheme sickness benefit at the rate of 70 per cent of wages is payable to employees registered under ESIC for the periods of certified sickness for a maximum of 91 days in a year. In order to qualify for sickness benefit, the employee under ESIC should contribute for 78 days in a contribution period of 6 months. Enhanced and extended sickness benefits are also available for recognized employees under the scheme, who qualify for particular criteria.

  • MATERNITY BENEFIT:

      Maternity benefit for confinement or childbirth is payable for three months, which is extendable by one month further on medical advice at the rate of full wage subject to contribution for 70 days in the preceding year.

  • DISABLEMENT BENEFIT:

      Temporary disablement benefit is payable to employees covered under ESIC at the rate of 90% of wages as long as the disability continues. Permanent disablement benefit (PDB) is payable at the rate of 90% of wages in the form of monthly payment depending upon the range of loss of earning capacity, as certified by a Medical Board.

  • DEPENDENTS’ BENEFIT:

      Dependents’ benefits are paid at the rate of 90% of wages in the form of monthly payment to the dependants of a deceased person covered under the ESIC scheme in cases where death occurs due to employment injury or occupational risk.

  • OTHER BENEFITS:

      In addition to the above full scale medical, sickness, maternity, and disablement benefits, employees registered under the ESIC scheme are also eligible for other benefits such as funeral expenses compensation, vocational rehabilitation, physical rehabilitation, old-age medical care, etc., Considering the above benefits for employees and the statutory responsibility of the Employers to be registered under the scheme, it is recommended that all businesses that are required to have ESIC Registration to be registered under the scheme at the earliest.