Employees’ State Insurance Corporation (ESIC) provides monetary and medical benefits to Employees in case of sickness, maternity and employment injury and to make provisions for related matters. The Scheme is mainly financed by contributions from employers and employees. The employers’ contribution is equal to four and three fourth per cent of the wages payable to employees. The employees’ contribution is at the rate of one and three-fourth per cent of the wages payable to an employee. The State Governments share expenditure on the provision of medical care.
WHO NEED TO REGISTER FOR ESIC?
ESI comes into the picture when a company or any other entity employs 10 or more employees, but applies only to low-earning employees. Any factory or business establishment having 10 or more than 10 employees, irrespective of salary, have to register with ESIC. Entrepreneurs must make ESI contributions for all employees having a salary of less than Rs.15,000 per month. Employees with less than Rs.15,000 monthly wages get health and sickness benefits through this statutory scheme. In this scheme, employer’s contribution 1.75% of his/her pay towards the ESI, while 4.75% will be contributed towards his/her ESI by the company.
BENEFITS OF ESIC
Employee’s State Insurance (ESI) is a self-financing scheme for Indian workers which covers health insurance and social security. ESI functions as an independent corporation and comes under Ministry of Labor and Employment in India. The ESI Corporation thus manages the funds which regulated by the guidelines and regulations of the ESI Act. 1948. This act monitors the provision of cash and medical benefits to employees and their families through their comprehensive network of hospitals and dispensaries throughout India.
Employees registered under the ESI scheme are entitled to a range of benefits. Employees and their families can avail medical treatment and attendance including not only medical but surgical and obstetric treatment as well. Supply of medicines, super specialty consultations, etc. can also be availed. Sick pay benefits also included. Thus, it advised for employees to register under ESI scheme.
DOCUMENTS REQUIRED FOR ESIC REGISTRATION
- Registration Certificate or License issued under Shops and Establishment Act or Factories Act, if available.
- Memorandum and Articles of Association or Partnership Deed or Trust Deed, depending upon the constitution of the ownership of the establishment.
- Certificate of commencement of production and/or Registration No. of CST/ST, if available.
- Month wise employment position, salary etc.
- List of Partners or Directors
- PAN Card and Address Proof of the Factory/Firm/Establishment
- Evidence in support of the date of commencement of production /business
- Copy of bank statement
STEPS OF ESIC REGISTRATION PROCEDURE
- Once the documents are ready, the company can apply for registration by submitting the Employer’s Registration Form (Form-1).
- A PDF format of the form is available on the website (esic.nic.in). Fill in the form and submit it to ESIC for registration on the official website (esic.nic.in).
- Once verified, a registration number, a 17-digit unique identity will be provided to the organization. The ESI filings can be done once you receive the 17-digit number.
- Employees registered under the scheme get an ESI card after submitting a form with photographs and details of family members.
- Although the registration is permanent, and the number is valid for the lifetime of the company, any new changes, such as employee additions, need to be intimated to the ESI.