The Employee State Insurance Corporation (ESIC), which has been established by law under the Ministry of Labour and Employment of the Government of India, manages the Employee State Insurance program.
A wide range of medical, monetary, and other benefits are provided to Indian workers under the ESI Act by contributions made by both employers and employees.
Registration Eligibility for ESIC
If the company has more than ten employees (in some states, it is 20 employees) and a maximum salary of Rs. 21,000/-, it must register itself with the Esi Registration within 15 days of becoming applicable.
The employer must contribute 3.25 percent of the employee’s annual salary under this scheme, whereas the employee must contribute only 0.75 percent of the employee’s annual salary. An employee who has a monthly salary of less than Rs. 176/- per day will be exempted from paying his contribution.
What Documents Are Required for Registration With Esic?
In order to register online, you do not have to submit physical documents. The following documents are required during the registration process:
- A registration certificate is obtained under one of the following:
- The Factory Act, or
- A law governing shops and establishments.
- Establishment’s certificate of incorporation, which includes:
- In the case of a company, a Certificate of Company Registration.
- If you are forming a partnership, you will need a partnership deed.
- A copy of the establishment’s GST certificate.
- A copy of the company’s articles of association and its memorandum of association.
- Proof of address can be any one of the following:
- Three-month-old utility bills (electricity, gas connection, and telephone bills) for the establishment.
- An agreement to rent the land where the establishment is located
- Receipts from property taxes on land where the establishment is located
- An employee list for the establishment.
- Business establishment and all employees’ PAN cards.
- An overview of all employees’ compensation.
- The company’s canceled check.
- The company’s directors are listed below.
- Shareholders of the company are listed below.
- The attendance register contains the employees’ attendance.
The Benefits of ESIC registration
This scheme has a variety of benefits, including:
- In case of a certified illness lasting for no more than 91 days in any given year, sickness benefits are paid at a rate of 70% (in the form of salary).
- A family member of an employee is entitled to medical benefits.
- Women who are pregnant are entitled to maternity benefits (paid leaves).
- Monthly payment of 90% of the deceased employee’s salary is given to his dependents if the employee died while on the job.
- As above, if the employee is disabled.
- A funeral’s expenses.
- Medical care expenses in old age.
Frequently Asked Questions
- Do employers have to register under the ESI?
ESI has to be registered by all employers who are covered by it. The factories or establishments that have more than 10 employees (some states have 20 employees) and an annual salary of Rs. 21,000/- are covered under the Act. In order to be covered by the ESI Act, organizations must register with the ESIC within 15 days of becoming covered.
- Can an employee be penalized for not paying the contribution on time?
In the event an employer fails to pay the prescribed contribution towards the ESIC of an employee, he or she will be liable to pay simple interest at the rate of 12% per annum for every day the payment is late or defaulted.
- ESI coverage can be terminated if the number of employees falls below the minimum number?
It doesn’t matter if the number of persons or employees at any time falls below the required limit or if the manufacturing activity changes, once a factory or establishment is covered, it stays covered.