All That You Need to Know about ESIC—from Registration to Documents and Processes
An employee-oriented multidimensional social security scheme, the employee’s state insurance scheme of India, has been designed to provide socio-economic protection to Indian employees. Registration associated with this scheme is provided under the Employee Stare Insurance Corporation—an autonomous, self-financing entity that the ESI Act, 1948, controls. It is an integral part of corporate governance under the Government of India.
Why is ESIC Registration Considered Crucial to the Working Community?
ESI registration scheme has been introduced to provide social security to Indian employees who work in organized business sectors. It covers unanticipated circumstances associated with the health of employees or their family members, thus relieving them from economic crises. Registering with this employee welfare scheme entitles employees to receive proper medical care at the time of need.
The Fundamentals of ESIC Registration
Initially performed manually, the ESIC registration process has been automated, enabling employees and companies to register online conveniently. Just by following a few steps, employees may get themselves registered. The registration process can be handled easily; it takes a little time and effort.
The scheme requires employers to contribute 3.25% of the salary paid to the employee, while the employee has to contribute 0.75%. These contributions must be made monthly, with the only exemption being employees whose wage or salary is less than INR 176/- per day.
Business Establishments Covered under ESIC
According to the Government of India, under section 1(5) of the ESI Act, the below-mentioned organizations are covered under the ESIC:
- Shops and commercial establishments
- Hotels and restaurants
- Private health care organizations
- Private educational institutions
- Cinemas and recreation centers
- Motor transport establishments.
The ESIC Registration Process
ESIC registration has been automated, with just the following simple steps involved:
- Logging in to the ESIC portal and signing up; filling the form with relevant details
- Collecting the username and password through Email
- New employer registration online, by way of filling the specified form, furnishing the type of business, and details
- Submission of the new employer form (Form-1) with all essential information
- Payment of advance contribution by the employer – for 6 months
- A system-generated registration letter (C-11) will be mailed to the registered Email address upon making the payment; this letter is a valid proof of registration.
The Exclusive Benefits of ESCI Registration
Registered employees are eligible for medical as well as financial help in any of the following cases:
- Employees can claim 70% of their monthly salary in case of prolonged illness.
- In addition to the employee, this scheme provides medical help to the employees’ immediate family.
- Women are entitled to take leave for 26 weeks under maternity benefits.
- The monetary benefit is available in case of any temporary or permanent work-related injury.
- In the event of the death of an employee during working hours, the immediate family is eligible to claim 90% of the employee’s salary every month.
Statutory Compliance Requirements after the Registration
After registration, the establishment must adhere to the exclusive requirements of the ESIC:
- Maintenance of employee attendance register
- Inspection book
- Register of wages and salary for workers
- A dedicated register to record accidents, if any
- Filing of monthly return within the 15th day of every month
Employers covered under the ESI Act have to register themselves under the ESI scheme. Non-contribution leads to penalty. TalentPro provides unparalleled ESIC registration and compliance management solutions to all types of business organizations in India. If you are looking for meeting the statutory compliance needs, avail our services for complete compliance management.