How It Works
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Employee State Insurance Corporation (ESIC) is a legally independent organization under the purview of the Indian Government’s Ministry of Labour and Employment. The Employees’ State Insurance (ESI) is a sophisticated social security program offering socio-economic security to organized workers. It protects employees against sickness, maternity, disablement, and death due to work-related injuries and provides medical care to insured employees and their families.
Enrolling qualified workers in the ESIC program is the employer’s responsibility. The contributions are determined by the employee’s ability to earn a fixed percentage of their wage, but they are impartially granted social security benefits depending on their unique requirements.
Benefits of ESI registration
Providing medical care
When necessary, the program offers the insured person protection by the laws and their relatives, medical support, and treatment. Except for Delhi, the state government provides the benefit via Model Hospitals maintained by ESIC. It is not based on an employee’s income or contributions.
Pregnant women eligible for up to 26 weeks of benefits are the target audience. Under medical advice, the abovementioned time may be extended for 30 days. Employees must have contributed 70 days’ worth of pay or salary in the two prior contribution periods to be eligible for the benefit.
Employees with disabilities can receive 90% of their monthly earnings as disability payments.
One can take sick leave for up to 91 days per year with 70% of their monthly salary.
In a sudden death, the deceased employee’s dependents will get 90% of their monthly wage while employed.
Employees with physical disabilities who are covered by insurance have the right to participate in vocational rehabilitation programs.
The family of the dead employee receives an additional 10,000/- for funeral costs.
Old Age Medical Care
Medical care benefits are guaranteed for retiring ESI employees or those choosing VRS/ERS for a yearly payment of ₹120.
When an insured woman or an employee’s wife becomes confined in a location without access to medical services, the ESI program allows for reimbursing confinement expenditures.
If there is an accident-related permanent disability or involuntary job loss, the program will pay up to 50% of the average monthly wage for 24 months.
Eligibility for ESI registration
- Each employee employed by a factory or company with more than ten employees is entitled to ESI benefits under Section 2(12) of the ESI Act of 1948.
- All employees in different establishments, including those employing more than 20 people in restaurants, hotels, transportation companies, news organizations, theatres, and cinemas, are eligible.
- All employees must contribute at least $10,000 to be eligible for the program’s full social security benefits.
- Regular employees receive only $21,000 monthly coverage, compared to $25,000 for disabled workers.
- ESI must cover all employees with a salary of less than 21,000 in industrial units where there is a risk of accidents or health difficulties occurring on the company’s property.
Entities covered under ESIC
- Non-seasonal factories with at least ten employees
- Hotels and Restaurants
- Newspaper undertakings
- Theatres that provide preview screenings
- Financial institutions that are not banks
- Organizations involved in the insurance industry
- Road-motor transportation businesses
- Port Trust
- Independent healthcare institutions and Private educational institutions
- Airport Authorities
- On-contract and temporary workers employed by municipal corporations or other local government entities in specific States or UTs that employ ten or more people.
ESI registration procedure
Step 1: Visit the Website
A potential ESIC applicant must log in at esic.in, the official government website.
Step 2: Receive Login Credentials
The candidate must submit information like their name and a valid email address. The candidate will receive login credentials following this process.
Step 3: Get confirmation through mail
The applicant will get a confirmation after the credentials are given. The candidate must sign into his email to check for the confirmation email.
Step 4: Enter Login details
The applicant can enter their login information for the ESIC registration portal after verifying that they are identical.
Step 5: Fill out an application
The applicant is required to provide all organization-related information at this stage. Filling out all of the fields denoted by an asterisk is required.
Step 6: Remit fees
The applicant must pay the costs after filling out the form. It is a six-month advance donation.
Step 7: Get your ESIC number
The final stage involves the authorities and competent officer issuing the ESIC number after confirming all the information.
Compliances after ESCI registration
- If applicable, a registration certificate or license is granted under the Shops and Establishments Act or the Factories Act. The government will issue a unique 17-digit number following the form’s authentication.
- The ESIC will be informed of any changes to the company or its personnel with evidence in favour of the start date of the production/business and information about each employee’s pay.
- The employee enrolled on this program must submit to the employer a completed registration form along with photographs of his immediate family to be registered.
- Upon registration, ESI Returns must be submitted twice a year. A list of the company’s directors or shareholders is also included, as well as registration of attendance for the staff.
The return needs to be filled out after ESIC registration.
Following registration under the ESIC, the employer will collect ESI every month, with payment due by the fifteenth of the following month. Any organization/company registered with ESIC must submit half-yearly and annual returns. While filing the ESIC yearly report, the department must be notified of every change to an employee that occurred throughout the year.
When submitting returns, the monthly Chillan copy must be included, and the employee register must contain all relevant information about contributions made. A record of wages, an attendance log, an inspection log, etc., must be kept on file by the establishment.
Within the allotted time, the employer’s and employee’s contribution amounts must be deposited with the department. Employees can also view the ESIC return contribution amount online in their passbooks.
Documents Required for ESI Registration
- Self-attested copy of PAN card (mandatory).
- Address Proof.
- Self-attested copy of Bank statement.
- Copy of Board Resolution.
- A copy of the license of a certificate of registration under Shops and Establishments/or Factories Act.
- Details of employees, details of the employment position, details of salary.
- Date of commencement of business or production evidence.
- Copy of COI and MoA and AoA/Partnership Deed/Trust Deed depending on the business entity.
- List of Shareholders.
- List of Directors.
- Canceled copy of Cheque.
Address Proof of Partners/Directors/Proprietor:
- PAN and
- Passport; or
- Aadhar card; or
- Driving license
For Employer Address Proof:
- Self-attested copy of Telephone/Mobile or Electricity bill; or
- Registered Title deeds or
- Rent Agreement
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