All About ESIC

ESIC is an autonomous organization under the Ministry of Labour and Employment, Government of India. Employee's State Insurance (ESI) is a self-financing social security and health insurance scheme for Indian workers.

How does the ESIC registration scheme help employees?

The scheme provides full medical cover to the employee registered under the ESIC Act, 1948 during the period of his incapacity, restoration of his health and working capacity.

It provides financial assistance to compensate for the loss of his/her wages during the period of his absenteeism due to sickness, maternity and employment injury. This scheme provides medical claim to his/her family members also.

Who requires ESIC Registration?

ESIC Registration is mandatory for every factory and specified establishments who have 10 or more permanent employees and wages of such employees are less than Rs. 21,000/- per month.

Penalty in case of failure to get ESI registration & ESI returns?

In case of any non-compliance by an employer, such as failure to get ESIC employer registration online or not fulfilling ESI return filing procedure, he shall be liable for a fine of INR 10,000/-.

Benefits of ESIC Registration

ESI Registration provides monetary and medical benefits to employees in case of sickness, maternity and employment injury and to make provisions for related matters.

Some of the benefits of ESI Registration are :

  1. Sickness benefits at the rate of 70% (in the form of salary), in case of any certified illness certified and which lasts for a maximum of 91 days in any year
  2. Medical Benefits to an employee and his family members
  3. Maternity Benefit to the women who are pregnant (paid leaves)
  4. If the death of the employee happens while on work 90% of the salary is given to his dependents every month after the death of the employee
  5. Same as above in case of disability of the employee
  6. Funeral expenses
  7. Old age care medical expenses

ESIC Contribution of Employer and Employees

Every month, employers are required to contribute 3.25 % and employee contributes 0.75% of the wages payable. Total ESI contribution i.e. 4% deposited to the ESIC fund.

Total ESI contribution is 4%

Documents required for ESI registration

  1. Registration Certificate GST Certificate, Shopex, COI
  2. Address proof Electricity Bill, Rent agreement, Telephone Bill, Water bill.
  3. PAN card Of business entity and all partners/directors.
  4. Cancelled cheque Cancelled cheque is required for authentication of bank details.
  5. Digital Signature of anyone Director. (Pendrive) DSC will be affixed on the application form.
  6. Additional Document In case of Company - COI/MOA, In case of partnership firm - Partnership deed.