The term “ESI” refers to Employee State Insurance, which is administered by the Employee State Insurance Corporation (ESIC), an independent organization founded by legislation and housed inside the Ministry of Labour and Employment of the Government of India.
For Indian laborers, the ESI program was established. Under the ESI Act, the contributions made by the employer and employee to the ESI system are used to offer the workers a wide range of medical, financial, and other benefits.
ESIC Registration Eligibility
Any non-seasonal factory or establishment with more than 10 employees (or 20 employees in some states) and a pay cap of Rs. 21,000/- is required to register with the ESIC within 15 days of the date of its implementation. According to this plan, the employee only needs to contribute 0.75 percent of his monthly salary each month of the year, while the employer is required to contribute 3.25 percent of the employee’s total monthly compensation.
Employees whose salaries are less than Rs. 176 per day are the only ones free from making a payment.
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Entities Covered Under ESIC
According to a government notification, the following entities are protected by Section 1(5) of the ESI Act:
- Shops.
- motels or restaurants that primarily focus on making sales.
- Cinemas.
- establishments for road motor transport.
- outlets for newspapers (which is not covered under the Factory Act).
- hospitals that are privately owned.
- institutions for private education.
- The owner/employer of the establishment is required to compel its registration with the ESIC if it employs 10 or more people.
Online Registration for ESIC
Manual registration was previously used. ESIC registration is now done entirely online. The following are the steps needed to register with ESIC:
Step 1: Log in to ESIC Portal
A business owner must register on the ESIC website.
Employers can sign up on the ESIC portal by selecting “Employer Login” on the main screen.
Second step: Confirmation email
The employer will receive a confirmation email after submitting the portal sign-up form, addressed to the registered email address and mobile number provided at the time of sign-up.
The email will include information on how to register as an employer and employee under the ESIC program, including your username and password.
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Step 3: Employer Registration Form-1
The next step is to access the ESIC site by selecting “Employer Login” from the menu on the home page and entering the username and password you were given in the email. The page with the option for “New Employer Registration” will be redirected as a result.
Then select “New Employer Registration.”
Step 4: Making Registration Payment
Following the completion of the ESI Registration Form, i.e. The employer must enter the amount to be paid and choose a payment method on Form-1’s ‘Payment of Advance Contribution’ page.
The advance payment must be paid by the employer for a period of six months.
Step 5: Registration Letter
The ESIC department sends the employer the system-generated Registration Letter (C-11), which includes a 17-digit Registration Number after the six-month advance contribution has been successfully paid.
A valid proof of the employer’s registration is the Registration Letter (C-11).
A valid proof of the employer’s registration is the Registration Letter (C-11). The Registration Letter (C-11) sample is provided below.
Required Documents for Esic Registration
No tangible documentation must be submitted because the registration process is online. The following documents must be submitted with the online registration form:
- Certificate of Registration received either through:
the Factory Act, or - Establishments and Shops Act
- the establishment’s certificate of incorporation, which is as follows:
a company’s Certificate of Company Registration. When a partnership firm is involved, a partnership deed. - The business’s GST certificate.
- Articles of Association and Memorandum of Association for the Company.
- verification of the establishment’s address. Any of the following can be used as address verification:
energy costs (Electricity bill, gas connection bill, or telephone bill of the establishment not exceeding three months) - Lease for the Property on Which the Business Is Located
- property tax receipts for the land where the business is located
a list of all the people working at the business. - Both the company establishment’s PAN card and the PAN cards of each employee are required.
information about each employee’s salary. - a voided check on the company’s bank account.
the company’s board of directors list. - List of the business’s shareholders.
- a register keeping track of employees’ attendance.
The Advantages of Esic Registration
There are many advantages to signing up for this program. Many of them include:
In the event of any illness that is certified and lasts for a maximum of 91 days in any year, employees are entitled to 70 percent of their wage as sick pay.
Medical benefits for both the employee and his family.
benefits of maternity leave for expectant mothers (paid leaves).
In the event that an employee passes away while at work, his dependents will be awarded a monthly payment equal to 90% of his wage.
The same applies if an employee has a disability.
funeral charges.
medical costs for the elderly.
Observances Following ESIC Registration
Following registration with the ESIC, the establishment must adhere to the following requirements:
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preserving the attendance log.
keeping thorough records of employee salaries.
Inspection journal.
Monthly returns and challans are due by the fifteenth of the next month.
keeping a register in which any accidents that occurred on the property are noted.