Intro: An employee-oriented multidimensional social security scheme has been developed to provide socio-economic protection to Indian employees, the employee’s state insurance scheme of India. Employee Stare Insurance Corporation is the entity responsible for providing registration for this scheme. The ESI Act, 1948, controls the organization as an autonomous, self-financing entity. Under the Indian Government, it forms an integral part of corporate governance.
The Working Community Considers ESIC Registration Crucial.
To provide social security to Indian employees in organized business sectors, ESI registration has been introduced. As a result, it relieves employees from economic crises resulting from unanticipated health issues. By participating in this employee welfare scheme, employees will be able to receive proper medical care when needed.
It is easier for business organizations to meet statutory compliance requirements by working with a reliable HR Services provider such as TalentPro.
Registering for an ESIC: The Fundamentals
As part of the ESIC registration process, employees and businesses are now able to register online conveniently. Originally performed manually, the process has been automated. With a few steps, employees can easily register themselves. It doesn’t take long or effort to complete the registration process.
3.25% of the salary paid to each employee must be contributed by the employer, while 0.75% must be contributed by the employee. Contributions must be made monthly with the only exception being employees making less than INR 176/- daily.
The Types of Business Establishments that are covered by ESIC
Section 1(5) of the ESI Act covers the following organizations, as per the Government of India:
- Establishments that sell goods and services
- The hotel and restaurant industry
- Organizations providing health care to the public
- Educational institutions that are privately owned
- A movie theater and a recreation center
- Establishments that provide motor transportation.
Getting Registered with ESIC
There are just a few simple steps involved in ESIC registration:
- Signing up for Esic online registration via the portal; filling out the form with relevant information
- Using email to collect usernames and passwords
- By filling out the online form, and providing the type of business and details, you can register as a new employer
- All necessary information must be provided on the new employer’s form (Form-1)
- Employer’s six-month advance contribution
- Following payment, a system-generated confirmation letter (C-11) will be emailed to the registered email address.
ESCI Registration Benefits
Medical and financial aid is available to registered employees in the following situations:
- When an employee is ill for a prolonged period, they can claim 70% of their salary.
- Besides the employee, this scheme provides medical assistance to their immediate families.
- Under maternity benefits, women can take 26 weeks of leave.
- An employee can receive a monetary benefit in the event of a work-related injury, whether it is temporary or permanent.
- If an employee dies during working hours, their immediate families are entitled to 90% of the employee’s salary.
Requirements for Statutory Compliance after Registration
ESIC establishments must comply with these exclusive requirements after registration
- Keeping attendance records for employees
- A book of inspections
- Workers’ wages and salaries register
- If there are any accidents, a dedicated register should be kept
- Every month, the monthly return must be filed by the 15th
- An Overview of ESIC Registration
- Online Update or Edit of Family Details in ESIC Registration Portal
- Registration for ESIC Online – Basic Steps