Proper registration under the ESI scheme of ESIC, is assigned to as the ESI Registration. ESIC stands for Employees State Insurance Corporation, which functions under the Ministry of Labor and Employment, Government of India. Registration under this ESI Scheme ensures availability of a wide range of medical, monetary, and other rebels to the employees of any employing organization having 10 or more employees. Such facilities are indeed very elegant for improving and boosting the health, morale, performance, and custody and progress of employees. Thus, registration under the ESI Scheme is regarded as a statutory responsibility of every concerned employer entity, engaged in any economic field. By March 2013, around 6.5 Lac employers were registered under ESIC, to ensure benefits of this scheme to about 1.75 Crore eligible employees.
Benefits of ESI Registration
The offers of ESI Registration are given by ESIC with efficient support of its large network of branch offices, dispensaries, and hospitals situated all across India. Broadly, the major welcome rebates to the contributing employees cover the following:
- In terms of Medical benefit: Sickness benefits in form of salary at the rate of 70%, in case of any certified sickness lasting for a maximum of 91 days in any year.
- In terms of Sickness Benefit: An array of medical benefits and facilities to the employee and his/her family. Sickness Benefit in the form of cash compensation at the rate of 70 percent of wages is payable to insured workers during the periods of certified sickness for a maximum of 91 days in a year.
- In terms of Maternity Benefit: Maternity benefit to pregnant women employees in the form of paid leaves for three months. Maternity Benefit for confinement/pregnancy is payable for Twenty Six (26) weeks, which is extendable by further one month on medical advice at the rate of full wage subject to contribution for 70 days in the preceding Two Contribution Periods.
- In terms of Funeral Expenses: An amount of Rs.10,000/- is payable to the dependents or to the person who performs last rites from day one of entering insurable employment. In case of death of an employee caused by an occupational hazard, ESIC pays 90% of his/her salary to his/her dependents every month.
- In terms of Permanent disablement benefit: Disability to work will be paid at the rate of 90% of the monthly salary of the concerned employee. The benefit is paid at the rate of 90% of wage in the form of monthly payment depending upon the extent of loss of earning capacity as certified by a Medical Board.
- In terms of Unemployment allowance: ESIC Provides monthly cash allowance for a duration of a maximum of 24 months in case of involuntary loss of employment or permanent invalidity due to non-employment injury. Loss of a job does not mean Loss of income.
Documents Required for ESI Registration
- Copy of pan of company/partnership/firm
- Copy of Certificate of Incorporation / Registration certificate
- Copy of all licenses issued in the name of the establishment
- A canceled cheque
- Copy of electricity Bill
- Copy of rent/ lease agreement
- Copy of pan and Address proof of directors/partners
- Copy of Board Resolution for company
- Digital Signature of Proprietor/Director/Partner
- List of all employees employed directly by the company or by the contractor.
A. Any employee is already registered under ESIC:
- Employee Insurance Number
- Date of Appointment
B. Employee Details:
- Name of employee
- Name of employee father/husband
- Date of Birth
- Address (Aadhar Card)
- Date of appointment
- Bank Account Details (Account number, Branch name, bank name, ifsc code, etc.)
- Details of nominees (name, address, mobile no, email id, relationship details, etc.)
- Contact no of employee
- Employer code no.
- Employer Insurance no.
C. Details of current employer
- Employer code no.
- Employer Insurance number
- Name of employer
- Address of employer
- Contact no of employee
Who is Required to obtain ESI Registration?
ESI Registration is required when a company employs 10 or more persons, with separated salary falling under the threshold limit of INR 15,000 per month. After registration, ESIC gives recognition to the employing organization and its employees through allotting 17-digit unique identification code.
To make available the offers provided under this ESI scheme, the registered employing entity needs to contribute 4.75% of the total monthly salaries payable to its employees; while the eligible individual employees require to contribute only 1.75% of their individual monthly salary to the ESIC funds, every month of the year. Those employees who earn up to INR 100/- per day, are exempted from paying their share of contribution to the ESI scheme.
Sickness benefits at the rate of 70% (in the form of salary), in case of any approved illness and which lasts for not more than of 91 days in any year.
- Medical offers to an employee and his family members
- Maternity advantages to the women who are pregnant (Paid Leaves)
- If the death of the employee happens while on work – 90% of salary is given to his dependents every month after the death of the employee
- Same as above in case of disability of the employee
- Funeral expenses
- Old age care medical capital.
After the registration finalised, ESI Returns have to be filed two times in a year.
- Restaurants / Hotels only engaged in sales.
- Road Motor Transport Establishments.
- Newspaper / magazine establishments.
- Private Educational Institutions