ESIC Registration

1) Overview

The Employee State Insurance Corporation (ESIC) is a social security initiative under the Employees' State Insurance Act, 1948, which provides medical and financial benefits to employees in case of sickness, injury, or disability due to employment-related hazards. ESIC registration is mandatory for organizations with 10 or more employees (the threshold may vary for some states) and aims to safeguard the welfare of workers and their dependents.

The primary objective of the scheme is to ensure that employees have access to medical care and are financially compensated during periods of illness or injury. It also provides pensions for dependents in case of the employee's untimely death or permanent disability. ESIC benefits are accessible to employees earning ₹21,000 or less per month.

2) Benefits

A. Medical Benefits

Employees registered under ESIC are entitled to comprehensive medical care. This includes treatment, medicines, diagnostic services, hospitalization, and follow-up care. Medical benefits extend to employees' families as well.

B. Sickness Benefits

Employees can claim sickness benefits at a rate of 70% of their average daily wages for a maximum of 91 days in a year if they fall sick and are unable to attend work. This ensures financial stability during periods of illness.

C. Maternity Benefits

Female employees covered under ESIC are entitled to maternity benefits, which include paid maternity leave for 26 weeks. This ensures that new mothers have financial support while on leave.

D. Disability Benefits

In case of employment-related injury or occupational diseases, ESIC provides both temporary and permanent disability benefits. The compensation depends on the extent of the injury, ensuring financial security for the affected employees.

E. Dependents’ Benefits

If an employee covered by ESIC dies due to employment-related hazards, their dependents are entitled to financial compensation through a pension. This provides ongoing financial support to the family after the employee's death.

F. Funeral Expenses

ESIC covers funeral expenses up to ₹15,000 in case of an employee's death. This is provided to the dependents or the person conducting the last rites.

G. Other Benefits

ESIC also covers rehabilitation costs in case of physical disability, old age medical care, and vocational training for those unable to continue in their current roles.

3) Procedure for ESIC Registration

The ESIC registration process is online and can be completed through the ESIC portal. Employers are required to register within 15 days from the date of the applicability of the Act.

Step 1: Visit the ESIC Portal

Go to the official ESIC website (www.esic.in) and select the ‘Employer Login’ option.

Step 2: Create an Account

For new users, click on the ‘Sign up’ button. You will need to provide basic details such as your company’s name, the employer’s name, email ID, and mobile number. Once registered, the system will provide you with a login ID and password.

Step 3: Fill the Employer Registration Form

Log in to the ESIC portal using the credentials provided. Navigate to the ‘New Employer Registration’ option, where you will need to fill out the Employer Registration Form (Form1). This form requires details about your company, including address, nature of business, PAN card details, and the total number of employees.

Step 4: Submission of Documents

Upload the necessary documents (as listed below) in the prescribed format.

Step 5: Payment of Contributions

Once the registration process is complete, you will need to make the initial contribution. ESIC contributions are divided between the employer and the employee:

• Employer’s Contribution: 4.75% of the employee’s monthly wages.
• Employee’s Contribution: 0.75% of the employee’s monthly wages.

Step 6: Generate Employee Insurance Numbers

After completing the employer registration, each employee will be issued a unique insurance number. Employers must register each employee on the ESIC portal and provide them with their insurance numbers.

Step 7: Receive Registration Certificate

After successful registration, the employer will receive an ESIC Registration Certificate, which contains a 17-digit unique identification number. This number is used for all future correspondence with ESIC.

4) Documents 

Employers are required to submit the following documents for successful ESIC registration:

A. Employee Records

• Details of all employees (including name, father’s name, gender, date of birth, and contact information).
• Employees' monthly salary/wages records.

B. Company Documents

• Company’s PAN card.
• Certificate of Incorporation or partnership deed (for companies/partnership firms).
• Address proof of the organization (such as electricity bill, lease deed, etc.).
• Bank account details of the organization.

C. Other Documents

• A list of employees with their date of joining.
• Attendance register.
• Details of the company’s activities and the number of employees employed.
• Wage register of employees for the past few months.
• Any other documents required as per state-specific rules.

5) Frequently Asked Questions (FAQs)

Q1. Who is eligible for ESIC registration?

ESIC registration is mandatory for establishments with 10 or more employees (depending on the state's threshold) earning a monthly salary of ₹21,000 or less.

Q2. What is the employer’s contribution rate for ESIC?

The employer contributes 4.75% of the employee’s monthly salary towards ESIC, while the employee contributes 0.75%.

Q3. Can employees earning more than ₹21,000 register under ESIC?

No, employees earning above ₹21,000 are not eligible for ESIC coverage. However, if the employee's salary is reduced below this threshold, they can become eligible for registration.

Q4. What happens if an employer fails to register under ESIC?

Failure to register under ESIC is a violation of the Employees' State Insurance Act, 1948, and can lead to legal consequences, including penalties and fines.

Q5. Is ESIC applicable in all states?

Yes, ESIC is applicable across India, but the threshold for employee count may vary from state to state. Employers should check their state's specific requirements.