Overview

The Employees' State Insurance Act, 1948 was enacted by the legislature as an integrated need based on the social insurance scheme. ESIC stands for Employee State Insurance Corporation, an autonomous body created by the Ministry of Labor and Employment which regulates and regulates Employees State Insurance in India. Employees' State Insurance is a self-financing social security scheme launched for the benefit of Indian workers, which provides them with medical facility, monetary facilities and other such benefits from their employer.

ESI is managed and governed by the rules and provisions issued by the ESI Act 1948.

Benefits

• The employee is provided benefit at the rate of 70% of his salary, if such illness continues for more than 91 days in a year, and the same is certified.
• The insured is provided medical benefits along with his family members
• Women are provided maternity benefit in the form of paid leaves
• 90% of the insured's salary is paid to the family of a deceased employee who has died while in employment
• In case of death of any employee falling under ESIC, funeral expenses are paid.
• Medical care and benefits are provided after retirement or in old age.
• If there is a permanent disability for the insured, then 90% of his salary is provided as monthly benefit in the form of insurance benefits
• Unemployment benefits are provided to a person with insurance of more than three years who becomes unemployed. Such allowance is provided at the rate of 50% of the salary of one year

Required Documents

The following documents are required while filling the online application:

• Any registration certificate or License issued under Shops & Establishment Act
• MOA & AOA in case an applicant is Company
• Partnership deed if the applicant is a partnership firm
• LLP Agreement in case of Limited Liability Partnership
• Registration certificate for other institutions and certificate of production of factories.
• Business PAN
• PAN & Aadhaar of employees
• Nominee details of the insured
• Organization's bank statement

Entities eligiblity

Entities employing ten or more employees are responsible for ESI registration:

Applicability

Institutions mentioned above, if ten or more employees have been appointed at any time during the previous year, it will be mandatory to get ESIC registration. But insurance is only deducted for employees who earn monthly income up to INR 21000 (basic salary + dearness allowance). In some states, coverage of ESIC applicability limited to the minimum employee is 20 or more.

The ESI scheme provides several benefits to the employees covered under ESI with a large network of dispensaries, hospitals and medical clinics to provide prompt medical care to the insured. An entity must obtain an ESI Registration Certificate within 15 days of implementation. However, ESIC regulations vary for different states, and thus, some rules and provisions vary accordingly.

Registration Procedure

• Apply online through new registration option available on the official website of ESIC esic.in
• The applicant can sign up by creating a user-ID and password, which can be used for further return filing or other similar activities.
• A confirmation mail is sent through the mail ID and mobile number entered at the time of sign up.
• Login using the same user-id and password to complete the application form online.
• Complete all the details of the application and a mandatory one marked with Asterisk (*) is provided.
• After completion of the application, submit it by paying the six-month stipulated advance contribution at the end.
• After the registration is complete, the registration certificate is allotted by the ESIC department with a 17-digit registration number.

Complaints after registration

Once the unit is covered under ESIC, it has to follow the mandatory guidelines issued by the Act:

• Maintenance of attendance register
• Full Register of Wages for Workers
• Inspection Book
• Monthly return & challan within 15th of succeeding month
• The register maintained to record any accidents that happened on the premises.

ESI Monthly Contribution

The scheme of ESI is contributory in nature. Both employee’s and employer’s contribution is required at a specific rate. Though, rates are amended from time to time. Following is the monthly contribution rate that is contributed mandatorily by both employer and employee:

• Employee: Employee has to contribute 0.75% of his basic wages to ESI Fund
• Employers: Employees have to contribute 3.25% of the basic salary paid to employees.

Employees earning up to Rs 137 of daily average salary are not entitled to be a part of the contribution. However, it is the responsibility of the employer to contribute their own shares in respect of these employees.

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