ESIC Registration
All you need to know
Employee State Insurance Corporation or ESIC Registration is a self-financing social security and health insurance scheme which provides medical benefit, sickness benefit, maternity benefit and various other benefits such as funeral expenses, free supply of physical aids etc. to the employees and their family.
Any factory or business establishment having 10 or more than 10 employees, irrespective of salary, have to register with ESIC. ESI contributions must be made for all employees having a salary of less than Rs.21,000 per month. Employees with less than Rs. 21,000 monthly wages get health and sickness benefits through this statutory scheme. The state government also contribute 1/8th share cost of the medical benefit.
Who needs to register for ESI? (What establishments need ESI registration?)
The following establishments having 10 or more employees attracts ESI coverage.
- Shops
- Hotels or restaurants not having any manufacturing activity, but only engaged in ‘sales’
- Cinemas including preview theaters
- Road Motor Transport Establishments
- News paper establishments
- Private Educational Institutions (those run by individuals, trustees, societies or other organizations and Medical Institutions including Corporate, Joint Sector, trust, charitable, and private ownership hospitals, nursing homes, diagnostic centers, pathological labs)
Rate of Contribution towards ESIC:
Currently, the employee’s contribution rate towards ESIC (w.e.f. 01.07.2019) is 0.75% of the wages and that of the employer’s is 3.25% of the wages paid/payable in respect of the employees in every wage period.
However, this rate keeps on changing from time to time.
Contribution Period and Benefit Period
There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration.
ESIC registration is a statutory responsibility of the employers of the factory. It is mandatory according to the rules and regulation of the ESI Act 1948.
caagrawalkanhere.com is an eminent business platform and a progressive concept, which helps end-to-end incorporation, compliance, advisory, and management consultancy services to clients in India and abroad. ESIC registration in India is easy, seamless, cheapest and quickest with caagrawalkanhere.com! Apart from an ESI Registration, caagrawalkanhere.com also helps you with PF Registration, PF Returns, ESI Returns, Trademark Registration and a host of other services easily. You may get in touch with our compliance manager on 07552761432 or email info@caagrawalkanhere.com for free query.
Benefits of ESIC registration- Modified Content
All that is covered by ESIC registration
Medical Benefit
The ESIC takes care of an individual’s and his dependents’ medical expenses by full medical and surgical care. his dependents without any limit in ESI dispensaries and hospitals including a supply of medicine, ambulance services, and super specialty consultation.
Disablement Benefit
In case an employee is disabled, ESIC ensures that the employee is paid 90% of their monthly wages for the period of the injury in case of a temporary disablement. In case of permanent disablement, 90% of wages paid for the remaining life of such an employee.
Sickness benefit
Sickness benefit is also provided to the insured employees in the form of cash compensation. At the rate of 70% of wages is payable to insured workers during the periods of certified sickness for a maximum of 91 days in a year by Employees State Insurance Corporation.
Maternity benefit
ESIC also helps the insured women employees in the time of pregnancy. Maternity benefit for confinement/pregnancy is provided by ESIC for six months subject to contribution for 70 days in the preceding year.
Dependant’s benefit
In case the employee meets with an untimely death due to an injury at the place of employment, ESIC pays a dependent benefit at the rate of 90% of wage in the form of monthly payment to the dependents of a deceased insured person.
Unemployment benefit
The ESIC ensures unemployment allowances equal to 50% of wage for up to 1 year and medical care for self and family from ESI Hospitals in case of permanent invalidity due to a non-employment injury or involuntary loss of employment.
How to register for ESIC?
5 Easy Steps
1
Complete simple form
2
Submit Documents
3
Application Preparation
4
Application Submission
5
You are ESIC Registered
FAQs On ESIC Registration
Get answers to all your queries