ESIC (Employees’ State Insurance Corporation) Registration Service

Registration Requirement For employers: where establishment having > 10 employees

What is ESIC?

ESIC stands for Employee State Insurance Corporation which is govt organized institution working for the unexpected needs of employees in exigencies like Sickness, Disability, Maternity, or Death. Along with employees, the corporation through Employees Insurance Act, 1948, Act also ensures to the immediate dependants [like employees’ Father, Mother, spouses, and children(s)] and of the said employees. Basically, ESI is a Health Insurance Scheme. ESI Registration is compulsory where established. Filingpool can help obtain ESI registration

How does it contribute?

The contribution is mainly drawn from both sides, it means that the employer in the favor of the employee contributes 3.25% of the basic wages of the employee and the employee is also liable to contribute some amounts of hard-earned money i.e. .75% of his basic wages. The rates are revised from time to time. Currently, the employee’s contribution rate (w.e.f. 01.07.2019) is 0.75% of the wages and that of employers 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 up to Rs.137/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.

Necessary Documents Required For Registration

• Copy of Pan of Individual / Firm / Company / Society / Trust
• Copy of Aadhar of Individual / Partners / Directors
• Canceled Cheque under the name of the taxpayer
• Partnership Firm Deed’s copy
• Certificate of Incorporation (in case of Company)
• Address proof of place of business like Rent Agreement along with Electricity Bill and NOC / Property Tax Receipt.
• Copy of GST Registration Certificate, if any.

Time-period

Around 3-4 Days after providing all the documents.
Benefits for ESIC
There are six social security benefits:-
(a) Medical Benefit
(b) Sickness Benefit(SB)
1. Extended sickness Benefit(ESB)
2. Enhanced Sickness Benefit
(c) Maternity Benefit(MB)
(d) Disablement Benefit
1. Temporary disablement benefit(TDB)
2. Permanent disablement benefit(PDB)
(e) Dependant’s Benefit(DB)
(f) Funeral Expenses
An interesting feature of the ESI Scheme is that the contributions are related to the paying capacity as a fixed percentage of the worker’s wages, whereas, they are provided social security benefits according to individual needs without distinction.
Cash Benefits are disbursed by the Corporation through its Local Offices Los/ Mini Local Offices (MLOs)/Sub Local Offices SLOs)/pay offices, subject to certain contributory conditions.
In addition, the scheme also provides some other need-based benefits to insured workers.
These includes :
i. Rehabilitation allowance
ii. Vocational Rehabilitation
iii. Unemployment Allowance (Under Rajiv Gandhi Shramik Kalyan Yojana)