ESIC Registration

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What is ESIC Registration?

The ESI Act 1948, covers certain health-related possibilities that the workers are generally exposed to; such as sickness, maternity, temporary or permanent disablement, Occupational disease, or death due to employment injury, resulting in loss of wages or earning capacity-total or partial. The act basically aids workers by providing social security. Social security provisions made in the Act to offset the resulting physical or financial distress in such contingencies are thus, aimed at upholding workers’ dignity in times of crises through protection from deprivation, destitution, and social degradation. The scheme was rolled out by the Ministry of Labour and Employment to protect the interest of workers against medical calamities. 
ESI registration scheme was initiated by Government to provide social confidence to employees.
This scheme enables the employee to get immediate and direct assistance during unfavourable circumstances relating to the health of the employee or his family members.
During the working years of an employee, he or she can get all the benefits from the ESIC registration for more than one time. 
Under this registration, if an employee undergoes any casualty, then he is provided with such appropriate certificate and documents stating his inability to work, which in turn ensures his salary under the organization he is working. 
This scheme serves thousands of employees every year who otherwise would be unable to pay the amount needed for the treatment. 

Who needs to register for ESI?

Under the ESI Act, 1948, every organization which has more than 10 employees who are drawing a salary of 21000 or more, is bound to provide ESIC registration. This compulsion for registration applies to both the organization as well as the employee. 

Contribution Period and Benefit Period 

 ESI Scheme being contributory in nature, all the employees in the factories or establishments need to contribute to the insurance scheme at a specific rate, currently, the employee's contribution rate (w.e.f. 01.07.2019) is 0.75% of the wages and that of the employers is 3.25% of the wages paid/payable in respect of the employees in every wage period. 

There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under. 

Contribution period: 

  1. 1st April to 30th September. 
  2. 1st October to 31st March of the year following. 

Cash benefit period: 

  1. 1st Jan of the following year to 30th June (for April to Sept contribution period). 
  2. 1st July to 31st December (for Oct to march contribution period). 

Entities Covered Under ESIC 

Under the ESI act of 1948, the following organizations are required to provide ESIC registration to their employees: 

  • Restaurants and shops 
  • Construction companies 
  • Employees working in theatres and cinemas 
  • Editing and publishing house 
  • The state or Central government does not aid educational institutions and Hospitals. 

Apart from these organizations, any other organization with more than 10 employees drawing a monthly salary above 21,000 is eligible for the ESIC registration. 

What is the Registration Procedure of ESI Registration in India? (Step by Step)

The procedure for ESIC online registration is as follows:

  • The employer will first register himself at the ESIC portal by signing up with their contact details.
  • After signing up, the login credentials and password are made available to the employer in his email.
  • Click on the “New Employer Registration” option.
  • After selecting the type of unit that is factory or shop establishment, Employer Registration – Form 1 will appear and the employer needs to fill in the detail.
  • In the ESI registration form that is Form-1 employer need to fill in details about his details along with shop or factory details and employee detail.
  • After submitting the ESI registration form payment gateway will be displayed and the employer needs to pay the advance contribution for 6 months.
  • Soon after payment of advance contribution registration letter that is C-11(coverage letter) is generated, which is a 17-digit registration number.
     

ESIC Registration – Process, Benefits, Documents Required

The documents that are required for ESIC registration are following: 

  1. The registration certificate of the shop/factory. 
  2. Partnership deed if available. 
  3. Memorandum of association in case of company. 
  4. Utility bills and rental agreement for address proof. 
  5. The list of employees working in the organization and their PAN cards. 
  6. PAN card of the business organization. 
  7. A canceled cheque of the establishment’s bank account. 
  8. List of directors and shareholders in case of company. 
  9. Compensation details of employees and their attendance register. 

Benefits of ESIC Registration

Registered employees under the ESIC scheme have many benefits from this scheme. The benefits start very from the financial and medical help, following are the benefits from ESIC registration:

  • In case of prolonged illness of the employee, around 70% of the monthly salary can be claimed as long as the employee is not certified fit to resume work again.
  • Medical benefits to the employee and his family members.
  • Under maternity benefits, women can take leave for 26 weeks, which would be considered paid leaves.
  • Monetary benefits in case of any temporary or permanent injury of the employee during working hours in a factory or shop.
  • 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.
  • Financial aid is granted for the funeral of the registered employee.
     

What is the Applicability of ESI and Its Coverage?
 
The ESI Act applies to all non-seasonal factories employing 10 or more persons. The state government and central government respectively have extended the coverage of applicability of this Act under Section 1(5).
The Shops, Hotel, Restaurants, Cinema including preview theatres, Road-motor transport undertakings, Newspaper establishments, Private Medical Institutions, Educational Institutions and to contract and casual employees of Municipal Corporation/Municipal Bodies employing 10 or more persons in the certain States/UTs are also covered under ESI Act.
The existing wage limit for coverage under the Act effective from 01.01.2017 is ₹21,000 per month and ₹25,000 per month in the case of Persons with Disability.
 

FAQs

ESI card is a health card given to the employees who are enrolled as a beneficiary under the ESI scheme.

Steps for getting an ESI card online are: Go to ESIC e-pehchan Portal. Select the employee tab and click on “e-pehchan card”. Fill in the employee insurance number and click on the view button (Employee insurance number can be obtained by employer’s login under ESIC portal under the list of employees). The employee can take a printout of the counterfoil of the e-card and attestation of the employer is necessary. After attestation, the employer needs to submit the e-Pehchan counterfoil to the nearest ESIC office and obtain an ESI card.

Yes, the Ministry of Labour and Employment has come up with a common registration for “EPFO-ESIC”. The same can be done by signing up under Unified Shram Suvidha Portal.

Yes, the employer has to file returns half-yearly.

All the employers who are covered under the Employees’ State Insurance Act,1948 have to mandatory register themselves under the ESI scheme.

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