Last Updated On:
Nov. 21, 2021, 7:41 p.m.
EMPLOYEE STATE INSURANCE CORPORATION(ESIC)
What is ESIC?
ESI registration is a scheme introduced to provide social security to workers working in any organized private sector companies. This scheme works in a way that in case of any unforeseen circumstances related to the health of the employee or his or her family, a registered employee can get immediate treatment. During the working years of an employee, he or she can get all the benefits from the ESIC registration as many times needed. Under the ESI Act, 1948, every organization which has more than 10 employees is bound to provide ESIC registration. This compulsion for registration applies to both the organization as well as the employee.
Who are Eligible for ESIC?
According to 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.
BENEFITS OF ESI REGISTRATION
ESI Registration ensures that employees enjoy the following benefit under the Employees State Insurance Act, 1948.
- Sickness benefit
- Maternity benefit
- Disablement benefit
- Funeral Expenses
- Dependent benefit
- Physical Rehabilitation
- Medical benefit
- Medical treatment by state government
- Medical and Para-medical Education
- Old Age Medical Care
What is the Contribution by Employer and Employee?
- The rates are revised from time to time, currently (w.e.f. 01.07.2019)
- The employee’s contribution rate is 0.75% of the wages and
- That of employer’s is 3.25% of the wages paid/payable in respect of the employees in every wage period
- Employees in receipt of a daily average wage upto Rs.137/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
- An Employer is liable to pay his contribution in respect of every employee and deduct employee’s contribution from wages bill and shall pay these contributions at the above specified rates to the Corporation within 15 days of the last day of the Calendar month in which the contributions fall due.
DOCUMENTS REQUIRED FOR ONLINE ESI REGISTRATION
- Certificate of Incorporation/Establishment License/Registration Certificate.
- Primary Owner Name
- Mobile & Email id of all employees
- Photograph of Primary Owner
- Mobile & Email id of Primary Owner
- Address of Primary Owner
- Name and Email Id of Primary Owner
- Address proof of Enterprise
- Copy of bank statement
- Copy of Utility bill of any company
- Any license/certificate/number issue by any government authority
- Memorandum and Article of Association or Partnership Deed, Trust Deed Date of Registration of Establishment Establishment Category
- Scan copy of PAN (As per Establishment)
- Scan Copy of cheque
- GST No. if any
- Primary Business Activity
- Subcategory of Nature of work
- Ownership Detail
- No of Employee drawing salary less than 21000/- pm
- Details of all employees along with salary information
- Scanned copy of Consent letter of the majority of employees with their details and signatures. (Only in case of voluntary coverage) Digital Signature of the Owner
- Bank Account details of employer & Employee
What are the Consequences if the employer does not make the payment?
According to any non-payments, delayed payments, or falsifying payments under ESI Act may attract imprisonment for a period extending up to 2 years and a fine of up to Rs 5,000.