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ESIC Registration | ESIC Registration Online

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ESIC Registration Online

ESIC full form is Employee State Insurance Corporation.

ESIC is social security and self-financing programme that provides employees with a wide range of health benefits.

The ESI Scheme provides advantages to both workers and their families.

The ESI plan provides a variety of benefits, including sickness benefits, disability benefits, medical benefits, and reimbursement for funeral expenses.

Employers with more than ten employees (in some states, the prescribed limit is extended to twenty employees) and a maximum monthly pay of Rs. 21,000 are required to apply for ESIC Registration to benefit from the ESI scheme.

Employers with more than 10 workers earning a maximum of Rs. 21,000 per month (Rs. 25,000 in case of disabled) are required to register with ESIC.

By getting ESI Registration, the Employer provides workers and employees with several financial, medical, and other benefits.

About ESIC

1948's Employee State Insurance Corporation (ESIC) Act governs the ESI programme.

Hence, the ESI system is administered and regulated by the ESIC Act of 1948.

The Ministry of Labor and Employment established the Employee State Insurance Corporation as an autonomous organisation.

This independent body in India is responsible for regulating all ESI-related activities.

What is a scheme for ESI?

ESI Scheme is a social security programme for people who work in the organised sector.

It is meant to protect their social welfare. Worker security is the safety net people have in case they get pregnant, get sick, lose their ability to work or die because of an accident at work.

This plan is also about making sure that insured employees and their families have medical care available (dependents).

What is the code number for ESIC?

Every registered firm is given a unique 17-digit number called an ESIC Code.

This code is made when the Employer fills out the required information on the ESIC Portal or when the Social Security Officer sends the Employer a survey report.

ESIC Registration Eligibility

Any non-seasonal company or business with more than 10 (in some states, 20) employees earning a maximum of Rs. 21,000/- per month must register with the ESIC within 15 days of the date it becomes applicable.

Under this plan, the employer contributes 3.25 per cent of the total monthly salary payable to the employee, while the employee contributes only 0.75 per cent of his monthly salary each month of the year.

The only employee who is free from contributing is one whose daily wage is less than Rs. 176 per day.

It means his/her total monthly salary should be less than Rs. 5200 (176x30).

Organizations Covered by ESIC

As to the government notification, the following entities are covered under Section 1(5) of the ESI Act:

  • Shops.
  • Restaurants and hotels solely engaged in sales.
  • Cinemas.
  • Road motor transport businesses
  • Newspaper organisations (which are not covered under the Factory Act).
  • Private educational institutes
  • Private medical facilities

When these establishments employ 10 or more employees, the owner/employer is required to register the establishment with the ESIC.

Required Documents for ESIC Registration

Due to the online nature of the registration process, no physical documents are necessary.

The required documents to complete the online registration form are:

  • Certificate of Registration issued under either the Factories Act or the Shops and Establishment Act.
  • Certificate of incorporation of the company, which includes the following:
  1. Certificate of Company Registration for businesses.
  2. If a partnership, a partnership agreement.
  3. GST certificate for the business.
  4. AoA (Articles of Association) and MoA (Memorandum of Association) of the Company/firm.
  • Address verification of the business. Any of the following may serve as proof of address:
  1. Utility bills (Electricity bill, telephone bill of the establishment or gas connection bill not exceeding three months)
  2. A list of all of the Company's staff.
  3. The PAN cards of both the business firm and all of its employees.
  4. The remuneration information for each employee.
  5. A check is drawn on the company's bank account that has been cancelled.
  6. A list of the company's directors
  7. List of the company's shareholders
  8. A register containing employee attendance information.

Online ESIC Registration Procedure

Initially, registration is done manually. Currently, ESIC registration is processed entirely online.

The following is an overview of the steps involved in ESIC Registration:

Step 1 : Log in to the ESIC Portal

  1. An employer is required to register on the ESIC portal.
  2. Employers can register for the ESIC portal by selecting "Employer Login" from the homepage.
  3. When you get to the next page, click the button "Register."
  4. Employers must submit the form after clicking the "Register" button and providing their information.

Step 2: Confirmation Mail

  1. After submitting the form for registration on the website, the employer will receive a confirmation email sent to the registered email id and mobile number provided during registration.
  2. The email will provide the username and password for registration as an ESIC employer and employee.

Step 3: Form-1 Employer Registration Application

  1. Next, log in to the ESIC portal by clicking "Employer Login" on the homepage and typing the username and password provided in the email. This will redirect you to the page with the 'New Employer Registration' option.
  2. Here from the drop-down menu, you have to select "New Employer Registration."
  3. Select 'Type of Unit' from the drop-down menu, then click 'Submit'
  4. The 'Employer Registration - Form 1' will appear, and the employer must fill out the necessary information.
  5. On the Employer Registration Form-1 (ESI Registration Form), the employer must provide information regarding the employer's unit, employer information, factory/establishment information, and employee information. After completing the form in its entirety, the employer must click the "Submit" button.

Step 4: Payment for Registration

  1. Once the ESI Registration Form, Form-1, has been submitted, the 'Payment of Advance Contribution' page will open, requiring the employer to enter the amount to be paid and select a payment method.
  2. The employer must pay the advance payment for a period of six months.

Step 5: Registration Letter

  1. Upon successful payment of six months' advance contribution, the system-generated Registration Letter (C-11) with a 17-digit Registration Number is issued to the employer by the ESIC department.
  2. The Registration Letter (C-11) is a valid proof of employer registration. The sample of the Registration Letter (C-11) is given below.
ESI-employer-registration-form11-sample

ESI Contribution of Employers and Employees

Each and every month, employees are responsible for contributing 0.75 percent of their salaries payable, while employers are required to contribute 3.25 percent. The total ESI contribution, which is equal to 4% of the ESIC fund deposit.

The overall contribution from ESI is 4%.

The following is a list of the ESI contribution rates for both employees and employers:

Employee

0.75%

Employers

3.25%

Total Contribution

4%

The employer is responsible for filing the ESI returns.

The filing of regular ESI returns is a requirement that must be followed by all business organizations that have an ESIC Registration.

The following is a list of ESI results in the following order:

ESI Returns

Interval

Due Date

Form 5

Half Yearly

April to Sept. : 11th Nov.

October to March: 11th May

Form 1a

Annually

31st January

The Advantages of ESIC Registration

The advantages of joining this scheme are numerous.

  • Sickness benefits at a rate of 70% (in the form of salary) in the incident of any certified illness lasting for a maximum of 91 days in any year.
  • Medical coverage for an employee and his dependents.
  • Pregnant women receive maternity benefits (paid leave).
  • If an employee dies while on the job, his dependents receive 90% of his salary in the form of a monthly payment.
  • the same as above in the event of the employee's disability.
  • Funeral expenses
  • Medical expenses for the senior citizen.
  • Compliance Following ESIC Registration

After it has been registered with the ESIC, the establishment is required to comply with the following regulations:

  • Keeping an attendance record.
  • Keeping a complete salary register for employees.
  • Inspection register.
  • Monthly return and challan due by the 15th of the following month.
  • Keeping a register that records any accidents that occur on the premises.

Returns are required after ESIC Registration

Employers are required to submit ESI returns half-yearly following ESIC registration.

The following documents are required to be attached to the returns:

  1. A record of employees' attendance.
  2. Register using Form 6.
  3. The salaries register.
  4. It is important to keep a record of any accidents that have taken place on business premises.
  5. Challans and returns due each month.

Frequently Asked Question : ESIC Registration

Is registration with the ESI mandatory for employers?

Yes. All employers covered by the ESI Act are required to sign up in the ESI scheme.

The ESI Act covers factories or companies with more than 10 employees (in some states, 20 employees) and a maximum monthly salary of Rs. 21,000/-.

The organisation must register with the ESIC within 15 days of becoming covered by the ESI Act.

How does a person register for ESI?

For ESI Registration, a worker must submit a completed ESI form and photographs of his/her family members to the company.

However, the employer must be registered with ESIC (Employee State Insurance Corporation).

Additionally, the employee will receive an ESI Card following registration.

How many workers are required for ESIC Registration?

Any business with more than 10 employees earning a maximum of Rs 15,000 per month is necessary to obtain ESIC Registration.

In certain states, the employee limit is increased to 20.

What is the penalty for late payment of an employee's contribution from his or her salary?

When an employer registered under the ESIC fails to pay the required contribution towards an employee's ESIC, the employer must pay simple interest at the rate of 12 percent per year for each day of delay or default in payment of contribution.

Does Trainee have to pay for Employee State Insurance?

Most of the time, trainees don't get a salary, but they do get a stipend. But if a trainee meets the criteria in Section 2(9) of the ESIC Act, he or she will be called a "employee" and be covered by ESIC.

Can a factory or other business that is covered by the ESI Act lose coverage if the number of people working there drops below the minimum number?

Once a factory or other place of business is covered by the Act, it stays covered even if the number of people or employees falls below the required limit or if the way it makes things changes.

How to check if an employee is signed up for ESI online?

A worker at a factory or other business that has registered with the ESIC can check their ESI registration information by using the insurance number they were given when they registered with the ESIC.

The employee must go to the ESIC website, click on the "Insured Person Login" button, and enter the user number and captcha code.

The user number is the employee's insurance number.

What is the number of the ESI Code?

The ESI code number is a unique 17-digit identification number (also called IP No.) assigned to each employee of an ESIC-registered factory or establishment.

Using the ESIC portal, the 17-digit number is generated after the employer has provided employee information.

How many employees must be registered for ESI?

ESI registration is required for all factories and organisations with 10 or more employees earning a maximum of Rs. 21,000 per year.

In certain states, however, the minimum is 20 employees.

What is a Return of ESI?

The phrase "ESI Return" refers to a return filed by every ESIC (Employees' State Insurance Corporation)-registered employer.

In addition, the employer must file this return twice every year (Half yearly basis).

Can ESI be utilised in Private Hospitals?

According to the ESI Act, an employee can only receive Medical Benefits at ESIC Hospitals and Dispensaries.

In the case of an emergency or the unavailability of an ESIC facility in a particular location, an employee may seek care at a private hospital, but only with prior permission from ESIC.

What does insurance number mean?

To identify each employee, the ESI scheme assigns each employee a unique identification number.

This number is known as the insurance number (IP No.) and is required in order to receive ESI benefits.

Can I access my ESI funds?

ESIC is a form of medical insurance for employees with incomes below a particular threshold.

Additionally, ESI deduction serves as a premium. In the event of a medical emergency, the employee may request repayment in the form of cash or medical benefits.

However, they are ineligible to withdraw funds from that facility.

Can I continue to receive ESI after leaving my job?

The validity of an ESIC card is dependent upon the availability of appropriate ESIC benefits.

In addition, eligibility requirements for ESIC benefits rely on ESIC contributions.

If you leave the job and your contribution is deposited by the employer then you can get ESIC benefits.

If the employer stopped your contribution then you are not entitled to get ESIC benefits.

Therefore, you can simply receive ESI benefits even after quitting your work till the benefits period is over. The benefits period counts for six months after contribution.

Disclaimer: The information on this page is only for educational purposes. When you look at the site or use the materials, you are not working with an attorney. The information on this site is not meant to be professional or legal advice. It shouldn't be used for these kinds of things or as a replacement for legal advice from a lawyer who is licenced in your state.

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