ESIC Registration Online – Overview
The Employee State Insurance (ESI) is a program initiated by the Government of India to provide various benefits, including medical and financial assistance, to employees. The ESI is administered by an autonomous body called the Employee State Insurance Corporation, which falls under the purview of the Ministry of Labour and Employment.
As per the law, any company with more than 10 employees must mandatorily have ESI. However, in some states, this number is 20. For employees earning a monthly salary of over ₹21,000, including their basic pay and dearness allowance, the insurance premium is deducted from their pay.
Additionally, taxpayers with an annual turnover of less than ₹1.5 crore have the option to enroll in the composition scheme, which enables them to avoid cumbersome GST formalities and pay GST at a fixed rate based on their turnover.
Benefits of ESIC RegistrationESIC New Registration provides various benefits to employees, including:
Employees and their families can access medical care and insurance from the first day of employment.
Pregnant employees can receive maternity benefits for up to 26 weeks, which can be extended by 30 days on medical advice. Employers are required to contribute their wages for 70 days in the preceding two contribution periods to qualify for these benefits.
Disabled employees can receive 90% of their monthly salaries as disablement benefits.
Employees can take up to 91 days of leave per year due to illness, with 70% of their monthly wages paid.
In the unfortunate event of an employee’s death during employment, their dependents can receive 90% of the employee’s monthly salary.
The deceased employee’s family is entitled to an additional amount of ₹10,000 towards funeral expenses.
If an insured woman or an employee’s wife requires medical attention during childbirth in a place with no medical facilities under the ESI scheme, confinement expenses can be availed.
In addition, the following need-based benefits are also available:
Permanently physically challenged, insured employees can undergo vocational rehabilitation training at VRS.
Employees who are physically disabled due to an employment injury or occupational hazards can access physical rehabilitation.
Old Age Medical Care:
Retiring ESI employees or those opting for VRS/ERS can receive medical care benefits for an annual payment of ₹120.
Extended Sickness Benefits:
ESI members suffering from chronic diseases can receive extended sickness benefits for up to 2 years, once the standard sick leave of 91 days has expired.
Enhanced Sickness Benefit:
Registered ESI members willing to undergo sterilization procedures are eligible for enhanced sickness benefits of 100% of their daily average wages. A recuperating period of 7 days for vasectomy and 14 days for tubectomy is also allowed from the date of surgery or admission to the hospital.
ESIC Registration Online Process
At Vakilsearch, we offer a hassle-free process for ESIC New Registration that involves only three easy steps, ensuring that your valuable time is saved.
Step 1 – Form Filling: You need to completely fill out the ESIC Online Registration form and submit all the necessary documents.
Step 2 – Verification: We carefully cross-check every detail you provide to ensure that there are no errors or omissions. This verification process may take a maximum of 12 days.
Step 3 – Submission: We submit your ‘ESIC registration’ along with the ‘ESI application’ and other legal paperwork required for the process. This step typically takes 2 working days.
Once we have completed our part of the ESIC Online Registration, your application will be reviewed by the government and your registration will be processed. Once your registration is granted, we will send you the following:
- The 17-digit identification code number
- Employee insurance number
- Temporary identity card
Eligibility/Entities Covered Under ESIC Registration in India
According to the ESI Act of 1948, all establishments can register for ESI online if they meet the criteria for having the required number of employees in their respective state. The following entities are covered under the Act:
- Movie theatres
- Medical institutions
- Hotels or restaurants
- Private educational institutions
- Newspaper establishments
- Roadside motor transport establishmentsHowever, it should be noted that for hotels and restaurants, only services are covered and not any manufacturing functions. Also, in some states, medical and educational institutes may not be covered, and newspaper establishments are not covered under the Factory Act.
To be eligible for ESI registration in India, the general rule is to have 10 or more workers, but in some regions, ESI is applicable only if there are more than 20 employees. Other eligibility criteria include:
- Employees with a gross salary up to ₹21,000 per month can avail of ESI with the help of their employer.
- The establishment must be registered with EPFO.
- The contribution to ESI is 6.5% of the gross salary, divided as 4.75% by the employer and 1.75% by the employee.
- For industrial units where there are chances of injury or health issues occurring on the business premises, all employees with a salary less than ₹21,000 must have ESI coverage.
Documents Required for Online ESIC Registration
In order to register for ESI, employers are required to submit a number of documents along with their application. These documents include the following:
- A registration certificate or license issued by the Shops and Establishments/Factories Act (this is mandatory for online registration with ESIC)
- Proof of address
- Rent receipt for the premises that are occupied, which should mention the capacity of the premises
- A copy of the PAN card
- A copy of the bank statement
- A photocopy of the most recent building tax/property tax receipt
- Memorandum and Articles of Association or Partnership Deed registration or Trust Deed registration – depending on the applying entity
- A photocopy of the registration certificate
- A certificate of commencement of production
- Registration number of CST/ST/GSTPlease note that for ESI filings, a monthly pay sheet is also required in order to compute the contribution amount for each employee.