Employee State Insurance Corporation or ESIC is a self-financing social security and health insurance scheme which provides medical benefit, sickness benefit, maternity benefit, disablement benefit and various other benefits such as funeral expenses, free supply of physical aids etc. to the employees and their family.
Units or Establishments that have 10 or more employees, drawing the wages of up to Rs.15,000 a month are required to be registered for ESIC under the ESI Act 1948. The benefits provided by the scheme are funded from the contributions raised from covered employees and their employers at the fixed percentage of wages. At present, covered employees contribute 1.75% of the wages to the ESIC and covered employers contribute 4.75% of the wages, payable to their employees. The state government also contribute 1/8th share cost of medical benefit. ESI Registration is done through Mibook
All Establishments and Factories employing more than 10 employees are required to mandatorily apply for ESI registration within 15 days of the ESI Act, 1948 becoming applicable to them. ESI Registration can be done through LegalRaasta in Delhi NCR, Mumbai, Bengaluru, Chennai and other Indian cities.
Employee’s State Insurance (ESI) Scheme runs under an independent authority- Employee State Insurance Corporation which falls under the jurisdiction of the Ministry of Labour & Employment. This scheme is designed to provide the socio-economic protection to employees working in a company. Medical benefits, sickness benefit, maternity benefit and various other benefits to the employees and their family are covered under this scheme. The scheme also extends the financial assistance and medical care to the employees along with their family member insured under ESI Act. The employer and employee need to make contribution to the ESIC and hence, it can be called as self- financing scheme. The employer needs to register under ESI Scheme which can be taken online at www.esic.nic.in (Government portal) once the employer falls under the obligation of taking this registration.
The following establishments employing 10 or more persons attracts ESI coverage :
• Hotels or restaurants not having any manufacturing activity, but only providing service.
• Roadside Motor Transport Establishments
• News paper establishments
• Private Educational Institutions and Medical Institutions
• Provides complete medical care to employees
• Includes employee’s dependants also
• Mandatory for units with >10 employees
• Any non-seasonal factory or establishment having more than 10 employees (in some states it is 20 employees) who have a maximum salary of Rs. 21,000/- has to mandatorily register itself with the ESIC within 15 days from the date of its applicability.
• Under this scheme, the employer needs to contribute an amount of 3.25% of the total monthly salary payable to the employee whereas the employee needs to contribute only 0.75% of his monthly salary every month of the year. The only exemption to the employee in paying his contribution is whose salary is less than Rs. 176/- per day.
Registration Certificate or Licence issued under Shops and Establishment Acts or Factories Act.
Address Proof: Latest Rent receipt of the premises you are occupying indicating the capacity in which the premises are occupied, if applicable.
Latest building Tax/Property Tax receipt (Photocopy).
Memorandum and Articles of Association/Partnership Deed/Trust Deed depending on the entity that is applying for registration.
Photocopy of certificate of Commencement of production and/or Registration No. of CST/ST (or GST once it becomes applicable).
Copy of PAN Card
Evidence in support of the date of commencement of production/business/first sale (e.g. Copy of First Invoice).
Month wise employment position, salary etc.
Copy of bank statement
Family Photo in Duplicate
• Family Photo in Duplicate
The benefits of registering under this scheme are varied. Some of them are:
• Sickness benefits at the rate of 70% (in the form of salary), in case of any certified illness and which lasts for a maximum of 91 days in any year.
• Medical benefits to an employee and his family members.
• Maternity benefit to the women who are pregnant (paid leaves).
• If the death of the employee happens while on work – 90% of the salary is given to his dependents in the form of a monthly payment after the death of the employee.
• Same as above in case of disability of the employee.
• Funeral expenses.
• Old age medical care expenses.
• The establishment needs to comply with the following after registering under the ESIC:
• Maintaining the attendance register.
• Maintaining a complete register of wages for workers.
• Inspection book.
• Monthly return and challan within 15th of the succeeding month.
• Maintaining a register that records any accidents that happened on the premises.
Payment: 15th of every month
Returns: May 11th and November 11th
Payment: 15th of every month
Returns: May 25th of every month