ESIC Registration
Mandatory for entities employing more than 10 people
Online ESIC Registration in India Starting at just Rs. 2999/-
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 which is an autonomous body created by the Ministry of Labor and Employment that governs and regulates the Employee State Insurance in India.
Employee State Insurance is a self-financing social security scheme, initiated for the benefits of the Indian workers by providing them with the necessary benefits such as medical facility, monetary facilities and such other benefits from his employer.
This scheme was started for Indian workers. The workers are provided with a huge variety of medical, monetary and other benefits from the employer. Any non-seasonal factory and company having more than 10 employees (in some states it is 20 employees) who have a maximum salary of Rs. 21,000/- has to mandatorily register itself with the ESIC.
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Sickness Benefits
Sickness benefits are provided to the employee at the rate of 70% of his salary in case such sickness continued for exceeding 91 days in a year, and the same is also certified.
Medical Benefits
Medical benefits are provided to the insured person along with his family members. Full medical care is provided to all persons registered under ESI and their family members – from the day the person enters insurable employment. There is no ceiling on expenditure on the treatment of an Insured Person or his family member. Medical care is also provided to retired and permanently disabled insured persons and their spouses on payment of a token annual premium of Rs.120/-.
Maternity Benefits
Maternity benefits are provided to the women in the form of paid leaves. Maternity benefit for confinement/pregnancy is provided for three months, which is extendable by further one month on medical advice at the rate of full wage subject to contribution for 70 days in the preceding year.
Deceased Employee
90% of the salary of the insured person is given to the family of a deceased employee, in case such death occurred while in employment.
Funeral Expenses
Funeral expenses are provided in case of death of any employee covered under ESIC. An amount of Rs.10, 000/- is payable to the dependents or to the person who performs last rites from day one of entering insurable employment.
Retirement Benefits
Medical care and benefits are provided after retirement or in old age.
Benefits For Permanent Disablement
In case there is any permanent disablement to the insured person, 90% of his salary is provided as a monthly payment in the form of insurance benefit.
Unemployment Benefits
An insured person having insurance for more than three years is provided unemployment benefits which become unemployed. Under the Rajiv Gandhi Shramik Kalyan Yojana, unemployment allowance is payable to an insured Person who become unemployed after being insured three or more years, due to closure of factory/establishment, retrenchment or permanent invalidity. The applicable unemployment allowances provided are:
1. Unemployment Allowance equal to 50% of wage for a maximum period of upto one year.
2. Medical care for self and family from ESI Hospitals/Dispensaries during the period IP receives unemployment allowance.
3. Vocational Training provided for upgrading skills – Expenditure on fee/travelling allowance borne by ESIC.
Documents Required for ESIC Registration
- 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 entities and certificate of commencement of production of factories
- PAN of the business
- PAN and Aadhar of employees
- Nominee details of the insured person
- Bank statement of the organization
Step-1:
Form Filling: The ESI registration form is filled by you completely and the necessary documents are submitted.
Step-2:
Verification: Every detail you provide is cross-checked to ensure there are no errors or omissions made. This may take a maximum of 12 days.
Step-3:
Submission: The ESI application along with other legal paperwork is submitted by us which requires 2 working days.
Your part of the ESI registration is completed at this point. The government reviews the application and processes your registration. Once granted, udyamaservices sends you:
The 17-digit identification code number
Employee insurance number
Temporary identity card
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1. What is ESI?
ESI stands for Employee State Insurance. This is a government regulated Insurance scheme for employees and their family, as health insurance covering sickness, maternity, disability, etc. -
2. What is the insurance number?
To recognize each employee, the ESI scheme allots a unique identification number to every worker. This number is called the insurance number and is used for all operational purposes. -
3.Is it compulsory for the units to obtain the ESIC Registration Certificate?
Yes, every entity eligible under the ESIC Act shall get the certificate by registering its entity under ESIC. The applicant can apply online through the official website of ESIC. -
4. Are there any provisions relating to compliance after registration?
Yes, entities once registered under ESIC are required to comply with the provisions of ESIC such as half-yearly return, a deposit of monthly contribution online, maintenance of other books and accounts as required, updating the changes if any relating to business activity, ownership, management, etc. -
5. What are the basic wages for the calculation of ESI?
Wages covered under ESIC is the total of Basic Pay plus Dearness Allowances that doesn't include any overtime done by such employee. -
6. What are the penal provisions in case of delayed payments?
If the employer fails to pay the online contribution within 21 days of the end of the month, shall be liable to pay damages at the rate of 12% per annum for each day of such default in contribution. -
7. Who regulates the ESI Scheme?
The ESI Scheme is administered by a corporate body called the 'Employees' State Insurance Corporation' (ESIC), which has members representing Employers, Employees, the Central Government, State Government, Medical Profession and the Parliament. The Director General is the Chief Executive Officer of the Corporation and is also an ex-officio member of the Corporation. -
8. How the scheme is Funded?
The ESI scheme is a self financing scheme. The ESI funds are primarily built out of contribution from employers and employees payable monthly at a fixed percentage of wages paid.
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