ESIC registration or Employees State Insurance registration is a social security program that offers medical and disablement benefits to the employees. It is overseen by Employee State Insurance Corporation and falls under the ESI Act, 1948. ESIC assures this provision to all the employees pan India. It is an autonomous body under the Ministry of Labour and Employment.
Who needs to do it?
The entities which are eligible to ESI registration are
If the company/entity has at least 10 employees (20 in some states) then it is a necessity.
Also, if all the employees are paid under Rs.21,000 per month, then 1.75% by the employee and 4.75% by the employer. So, it totals up to 6.50% of the total income of the person.
It is mandatory for all the companies/industrial units where 50-90% of injuries happen during the office premises.
Entities include Shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings, newspaper, Private Medical and Educational Institutions employing 10(20 or more persons in certain States) persons are required to get ESIC registration online
Employing 20 persons is not enough. The amount of wage, as indicated under Section 2(9) of the ESI Act, needs to be followed as well to be eligible for ESIC registration.
Documentation process for ESIC registration
Registration certificate. If it is a factory, then the certificate under the Factories Act, if it is a shop/establishment, then the Shops and Establishment certificate is required.
If it is a company, then the Certificate of registration or if it is a partnership, the partnership deed.
Memorandum of Association or Article of Association of the company
List of all the employees along with their compensation details
List of all the directors/partners/shareholders along with their addresses
Pan card of the company and of all the employees working in the company
A canceled cheque from the bank account in the name of the company
Total number of working days of the employee
Online Procedure of ESIC Registration
First, go to www.esic.in and click on signup
Enter the initial details like company name, Principal employer name, state, region, email id, and phone number. Click submit
Check your mail for login credentials.
After logging in using the information available in the mail, click on “new employer registration”
Select the type of unit you are operating, a shop, company, partnership firm and so on.
Now, ESIC registration form-01 appears. All the fields with an asterisk (*) are mandatory to be filled.
After filling in all the necessary details, the credentials will be checked.
A new 17 digit exceptional character will be given to the association.
Employees registered under ESI will get an ESI card after submitting photos with subtle elements of relatives
ESI registration online in India is valid until the lifetime of the firm/establishment but any amendments needed to be made shall be informed to ESI.
Benefits of ESIC registration
Sickness benefits are provided in a total of 70% of the total salary, in case sick leave is taken (mentioned under certified illness) for a maximum of 91 days.
Number of medical benefits to the employee and his/her family members
Maternity benefits to the employee for a period of 3 months
In case of death of an employee while on work, then 90% of the salary will be provided to the family members every month after the demise
Same conditions will apply in case of disability of a person
Funeral/cremation expenses will be covered as well
Also, after retirement, old age medical care expenses will be provided.
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