As of now, any enterprise, occupation, or establishment employing more than 10 individuals with a minimum salary of Rs. 21,000 is obligated to undergo mandatory registration with the ESIC.
What is ESI Registration?
The Employee State Insurance (ESI) is overseen and governed by the Employee State Insurance Corporation, an autonomous entity under the Ministry of Labour and Employment, Government of India. This scheme, initiated for Indian employees, offers financial, medical, and other advantages from the employer to the employee.
Employee benefits are as follows:
Medical Benefits: Comprehensive healthcare for insured individuals and their family members, with no expenditure limit.
Maternity Benefits: Paid maternity leave for women, extendable with medical advice.
Deceased Employee: 90% of the insured person's salary is given to their family in the event of the employee's death during employment.
Funeral Expenses: An amount of Rs. 10,000 is provided for the funeral expenses of an insured employee.
Retirement Benefits: Medical care and benefits for retirees and older individuals.
Benefits for Permanent Disablement: Monthly payments in the form of insurance benefits for permanently disabled insured individuals.
Sickness Benefits: 70% of salary for sickness lasting more than 91 days in a year, with certification.
Unemployment Benefits: Insured individuals with more than three years of coverage are eligible for unemployment benefits.
Tax & Process
Penalty for Non-Compliance
Failure to comply with ESIC regulations, including online employer registration and ESI return filing, may result in a fine of INR 10,000.
Certificate of Registration under the Factories Act or Shops and Establishment Act.
For Companies: Certificate of Registration; For Partnerships: Partnership Deed.
Copy of the Bank Statement.
Copy of the License issued in the name of the establishment.
Memorandum of Association and Articles of Association for Companies.
List of all employees working in the establishment.
Copy of the Electricity Bill.
Copy of Rent/Lease Agreement.
PAN Card of the Business Entity and all Employees working under the entity.
Copy of Board Resolution.
Compensation details of all employees.
Canceled Cheque of the Company's Bank Account.
List of Directors of the Company.
List of Shareholders of the Company.
A register containing attendance records of employees.
In addition to the above documents, the following information is required:
If an employee is already registered under ESIC:
Employee Insurance Number.
Date of Appointment.
If an employee is not registered with ESIC:
Name of the employee.
Name of the employee’s father/husband.
Date of Birth.
Date of appointment.
Details of nominees (name, address, mobile number, email ID, relationship details, etc.).
Bank Account Details (account number, branch name, bank name, IFSC code, etc.).
Employer code number.
Details of the previous employer.
Name of the previous employer.
Previous Employer Insurance number.
The contact number of the previous employer.
Address of the previous employer.
Details of the current employer:
Employer code number.
Employer Insurance number.
Name of the current employer.
Address of the current employer.
The contact number of the employee.
Step 1: Log in to the ESIC Portal
Employers should visit the ESIC portal to register.
Click on the 'Sign Up' button in the 'Employer Login' section.
Fill in the required details and submit the form.
Step 2: Confirmation Mail
A confirmation email will be sent to the registered email ID and mobile number.
The email will contain the username and password for employer and employee registration under the ESIC scheme.
Step 3: Employer Registration Form-1
Log in to the ESIC portal with the provided username and password.
Select 'New Employer Registration' from the drop-down list.
Choose the 'Type of Unit' and click 'Submit.'
Fill in details on the 'Employer Registration – Form 1' related to the unit, employer, and employees.
Click 'Submit' after completing the form.
Step 4: Payment for Registration
After submitting Form-1, you'll be directed to the 'Payment of Advance Contribution' page.
Fill in the payment amount and select the payment mode.
Make an advance contribution for six months.
Step 5: Registration Letter
Upon successful payment, a system-generated Registration Letter (C-11) with a 17-digit Registration Number will be sent to the employer.
This letter serves as proof of registration.
Step 6: Post-Registration Compliances under ESI
Maintain an attendance register.
Keep a register of wages for workers.
Maintain an inspection book.
Submit monthly returns and challans by the 15th of the succeeding month.
Maintain a register for recording workplace accidents.
What is the ESI scheme?
The ESI scheme is a comprehensive social security scheme designed to protect employees in the organized sector against events like sickness, maternity, disablement, and death due to employment injury.
Is ESI calculated on the basic salary?
ESI is calculated on the gross salary of Rs. 21,000. If the salary is above Rs. 21,000, the ESI contribution will still be based on Rs. 21,000.
Is the family of the employee covered under ESIC?
Yes, the employee and their family are entitled to avail of medical benefits from the first day of joining insurable employment under ESIC.
Is ESI Registration mandatory?
Yes, it is mandatory. Employers are legally obligated to register their Factory/Establishment under the ESI Act within 15 days from the date of applicability.
What is the employee's contribution to ESIC?
From the total ESI contribution of 6.5%, only 1.75% is deducted from the employee's salary, while the remaining portion is contributed by the employer.