ESIC registration

/ Business licensing

ESIC registration or ESIC stands for Employee State Insurance managed by the Employee State Insurance Corporation which is an autonomous body created by the law under the Ministry of Labour and Employment, Government of India. Under this scheme, the employer needs to contribute an amount of 3.25% of the total monthly salary payable to the employee whereas the employer needs to contribute only 0.75% of his monthly salary every month of the year.

Entities covered under ESIC

As per the government notification dated Sec 1(5) of the ESI Act the following entities are covered:

  • Shops
  • Restaurants or Hotels only engaged in sales.
  • Cinemas
  • Road Motor Transport Establishments;
  • Newspaper establishments (which is not covered under the factory act)
  • Private Educational Institutions

Required Documents for ESIC Registration

Following are the documents required for ESIC Registration:

  • Registration certificate as obtained under:-Factories Act and Shops and Establishment Act. Certificate of registration in case of a company and partnership deed for a partnership firm
  • MOA and AOA of the company:- List of all employees working in the establishment along with employee details such as name, father’s name, mobile number, date of birth, date of joining, salary, postal address, name of the nominee, grade, identity proof such as PAN or aadhaar, bank account number etc.
  • Attendance register of the employees
  • PAN card of the business establishment
  • Scanned copy of the licenses received by the company such as GST
  • A cancelled cheque of the bank account of the company
  • Digital signature of the proprietor, partner or director as the case may be
  • Directors’ list
  • Shareholders’ list
  • Address proof of the proprietor, partner or the company directors as the case may be
  • Mobile number and email id of prietor, partner or director of the company as the case may be.

Features of ESI

The ESI scheme managed by the Employees State Insurance Corporation provides a host of medical and sickness benefits to employees enrolled under the ESI Scheme:

  • Medical Benefits: ESIC provides medical benefits to the employees and their family members for coverage of medical expenses from the first day of employment. There is no ceiling on the number of funds provided to the insured employees or the family members for the treatment.
  • Sickness Benefits: Employees can claim 70% of their daily wages for a maximum period of 91 days during the sick leave. Employees enrolled in ESIC are ensured regular cash support during any sick leave availed. They can, however, receive the cash compensation for the sickness if they have contributed for 78 days in a contribution period of 6 months.
  • Disability Benefits: In the case of temporary or permanent disability, ESIC ensures that the financial benefits are provided to the employee during the time of injury. In case of temporary disability, 90% of the wages are paid as long as the disability continues irrespective of the contribution period. Employees can receive disability benefits at the rate of 90% on a monthly basis depending on the loss of earning as certified by the Medical board.
  • Maternity Benefits: Under the ESI benefits, ESIC provides the following compensation at the time of maternity:
  • 100% of the daily wages for 26 weeks from the time of going into labour.
  • Six weeks in case of a miscarriage.
  • Twelve weeks of pay is provided in the case of an adoption.
  • Death benefits: The family of the employee is provided 90% of the daily wages every month if the employee dies at the workplace.

There are several other ESI benefits offered by ESIC, which are Funeral expenses, Old age care medical expenses, Physical Rehabilitation and Vocational Training.

ESI Returns

After the registration ESI Returns have to be filed twice a year. The following documents are required for the filing of the returns:

1. Register of Attendance of the Employees

2. Form 6 – Register

3. Register of wages

4. Register of any accidents which have happened on the premises of the business

5. Monthly returns and challans

FAQs

Qus:- Who mandatorily required ESI registration?

Every shop, establishment, and factory having 10 or more employees requires to get register under Employees’ State Insurance.

Ques:- How does ESI registration contribute in pension?

The employees covered under the ESI scheme are entitled to a family pension.

Qus:- How to Obtain the ESI card or Pehchan card?

The employer needs to download a Pehchan application form from the ESIC portal (www.esic.in) and fill in the details of the employee. The employee has to submit a family photograph containing the photos of the dependents and the employer has to attest the photograph.

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