ESIC Registration – Process, Documents Required, Apply Online

What is ESIC?

ESIC stands for Employee’s State Insurance Corporation. It is a social security organization and an autonomous body created by the Indian government. Social security refers to when a government or society as a collective provides financial and other forms of assistance to individuals or families facing various life challenges, such as old age, disability, unemployment, illness, or the death of a breadwinner through a program or a set of programs. 

Employees’ State Insurance Act, of 1948, governs the ESIC and it primarily provides a range of social security benefits to employees and their dependents in India. The main objective of ESIC is to protect employees against the financial burdens of sickness, disability, maternity, and death due to employment-related injuries or diseases.

Features and Functions of ESIC

Here are some key features and functions of ESIC:

1. Healthcare Services: ESIC provides medical care and treatment to insured persons and their dependents through a network of ESIC hospitals, dispensaries, and clinics across India.
2. Employer-Employee Contribution: Both employees and employers contribute to the ESIC fund. The contributions are a percentage of the employee’s salary, which the employer also matches.
3. Registration: All employees earning up to a specified wage limit of up to Rs. 21,000 need to register with ESIC. You can simply do your ESIC registration online.
4. Coverage: ESIC registration covers a wide range of employees, including those employed in factories, establishments, and businesses with ten or more employees.
5. Online Services: ESIC offers various online services for both employers and employees, such as online ESIC registration, payment of contributions, and access to electronic health records.

What is ESIC Registration?

Employees’ State Insurance Corporation (ESIC) registration is a mandatory process for employers in India under the Employees’ State Insurance Act 1948. ESIC is a comprehensive social security and health insurance scheme for Indian workers, covering various contingencies such as sickness, maternity, disability, or death due to employment injury. Here’s what ESIC online regist6ration entails:

1. Employer Registration: Every employer having more than ten employees (in some states, the threshold is 20 employees) is required to register under ESIC. This includes all private limited companies, partnership firms, sole proprietorships, and other forms of business entities.
2. Employee Eligibility: Employees earning wages up to Rs. 21,000 per month are eligible for ESIC registration and to avail of the benefits. Both permanent and temporary employees fall under this category.
3. Benefits for Employees: Registered employees and their dependents receive various benefits, including medical benefits, sickness benefits, maternity benefits, disability benefits, and dependents’ benefits. TESIC dispensaries, hospitals, and clinics provide these benefits.
4. ESIC Code: Upon successful ESIC online registration, the employer is provided with an ESIC code number. This code number is used for making ESIC payments and filing returns.
5. Monthly Contributions: Employers need to make monthly contributions to the ESIC fund based on the total employee wages. Employers must deposit these contributions by the 15th of the following month.

Who Needs to Register with ESIC?

Under ESIC, both the employee as well as the employer need to make regular contributions to the fund. So, the employer as well as the employee need to register with ESI. Any organisation which qualifies as an establishment or a factory according to the ESI Act, must register under ESIC. Let’s look at what an establishment or a factory means.

Definition of Establishment Under the ESI Act:

In India’s context, under the Employees’ State Insurance (ESI) Act, 1948, the term “establishment” refers to any entity or place of work where there are ten or more employees (in some states, it’s twenty or more) employed for wages. This includes factories, shops, hotels, cinemas, road motor transport undertakings, newspaper establishments, and more.

Establishments covered under the ESI Act are required to provide employees with benefits like medical care, sickness benefits, maternity benefits, and more through the ESI Corporation. The Act aims to provide social security to employees in case of sickness, disablement, or death due to employment injury.

Definition of Factory under the ESI Act

Under the Employees’ State Insurance (ESI) Act in India, a “factory” is defined as any premises, including the precincts thereof, where ten or more persons are employed for wages in any manufacturing process. This definition encompasses a wide range of manufacturing activities and industrial establishments, and it is a key criterion for determining the applicability of the ESI Act.

When a factory meets the specified criteria, it becomes mandatory for the employer to register the factory under the ESI Act and provide the prescribed social security benefits to the employees working in that factory, including medical and disability benefits.

Benefits of ESIC Registration:

Here are the key benefits of ESIC online registration for employees:

1. Medical Benefits: Employees with ESIC registration and their dependents, like spouses and children, can get free medical treatment at ESIC dispensaries, hospitals, and clinics. This includes outpatient and inpatient care, specialist consultations, surgeries, and medicines.
2. Cash Benefits: ESIC registration offers several cash benefits to employees, including:
   • Sickness Benefit: Financial support in case of temporary incapacity due to sickness or injury. It covers 70% of the average daily wages.
   • Maternity Benefit: Paid leave for female employees during pregnancy and childbirth, covering 100% of average daily wages.
   • Disablement Benefit: Compensation for work-related injuries resulting in a temporary or permanent disability.
   • Dependents’ Benefit: Financial assistance to dependents in case of an employee’s death due to employment-related injuries.
   • Funeral Expenses: A lump sum payment to cover funeral expenses in case of an employee’s death.
3. Free Diagnostic Services: ESIC hospitals and dispensaries offer free diagnostic services, including laboratory tests and radiology, ensuring accurate and timely diagnoses.
4. Cashless Treatment: ESIC-registered cardholders can access cashless medical treatment at ESIC-empanelled hospitals and nursing homes, reducing the financial burden on employees.
5. Legal Protection: ESIC registration ensures that employees have legal protection and recourse in case of employment-related injuries or illnesses.

ESIC Registration Process:

Here’s a step-by-step guide to the ESIC online registration process in India:

1. Step 1: Begin by signing up on the ESIC portal. This step is usually straightforward, and it’s the first thing new employees do when accessing the portal.
2. Step 2: After signing up, you’ll receive an email confirming your username and password. These credentials are essential for accessing the portal throughout your employment with the organization.
3. Step 3: Use the provided username and password to log in to the portal. Once logged in, you’ll find a ‘new employee registration form.’
4. Step 4: Fill out the ‘new employee registration form’ with your organization’s details and your employer’s information. Ensure that you provide all the required information accurately. Click ‘submit’ to finalize the ESIC registration form.
5. Step 5: ESIC registration typically involves paying an advance amount for the next six months. Navigate to the ‘payment’ section and follow the payment procedure to complete this step.
6. Step 6: After successful ESIC online registration and payment, you’ll receive a C-11 letter. This letter contains your unique 17-digit registration number generated by the ESIC system, confirming your registration under the ESIC scheme.

Documents required for ESIC online registration

For Employees’ State Insurance Corporation (ESIC) registration as an employee in India, you may typically need the following documents:

1. Photographs: Recent passport-size photographs.
2. Family Details: Details of your family members, including their names, dates of birth, and relationship with you. This is crucial for availing family benefits.
3. Aadhar Card: A copy of your Aadhar card, which serves as a primary identification document.
4. Bank Details: Bank account details, including the account number and IFSC code, for salary and benefits disbursement.
5. Address Proof: Proof of residence, such as a utility bill or rent agreement.
6. Nomination Form: A nomination form for claiming benefits in case of your unfortunate demise.
7. Declaration Form: The ESIC registration Declaration Form 1, which the employer provides and you should fill up.
8. PAN Card: A copy of the Permanent Account Number (PAN) card for taxation purposes.
9. Employer’s ESIC Code: The employer’s ESIC registration code will be used for your ESIC online registration.

Returns To Be Filed After ESIC Registration

After ESIC (Employees’ State Insurance Corporation) registration in India, employers are required to file several periodic returns and reports to comply with the regulations. The primary returns and reports that need to be filed include:

1. Monthly ESIC Contribution: Employers must file monthly returns indicating the total wages paid and the total contributions made by both the employer and the employee. This return is typically filed on or before the 15th of the following month.
2. Half-Yearly Return of Contributions: Employers are required to file a half-yearly return of contributions for the periods April to September and October to March. This return provides details of the contributions paid for each employee during these periods. It should be filed within 42 days of the end of the respective contribution period.
3. Annual Information on Factory/Establishment: Employers must file an annual return providing information about the factory or establishment, including details of employees, wages, and other relevant particulars. This return should be filed by the 12th of February following the end of the contribution period (i.e., for the preceding calendar year).
4. Accident and Death Reports: Employers are obligated to report any accidents or deaths occurring on the premises to the ESIC authorities within 24 hours of their occurrence.
5. Inspection Reports: ESIC authorities may conduct periodic inspections, and employers may be required to submit reports related to compliance with the ESIC Act.

To conclude:

ESIC (Employees’ State Insurance Corporation) is an autonomous body that the Government of India set up under the Employees’ State Insurance Act, of 1948. It is a social security organisation that provides financial and other forms of assistance to individuals or families facing various life challenges. ESIC registration comes with several benefits for employees like medical assistance, cash assistance, injury benefits, maternity benefits etc.

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FAQs:

Q1. Is ESIC a government organisation?

Ans: Yes. The Government of India created the ESIC (Employees’ State Insurance Corporation) under the Employees’ State Insurance Act, of 1948 with the intention to provide social security to the citizens of our country who may need it.

Q2. What are the other bodies of the ESIC?

Ans: The ESIC includes:

• The Standing Committee (a representative body) and the Medical Benefit Council (a specialised advisory body for administration) at the national level
• Regional Boards and Local Committees on the regional level and
• Hospital Development Committees and State Executive Committees for monitoring the performance of ESIS in states and UTs.

Q3. Is ESIC registration compulsory for all employees?

Ans: ESIC registration is not mandatory for each employee. However, it is a must for all employees who are earning up to Rs. 21,000 per month.

Q4. What is the eligibility for ESIC online registration?

Ans: Employees in India with a monthly salary of Rs. 21,000 or less are eligible for ESIC registration. This scheme covers a wide range of workers, including those in organized and unorganized sectors. It provides healthcare and social security benefits to ensure financial protection during medical emergencies.

Q5. What is an ESIC number?

Ans: An ESIC number is a unique 17-digit registration number generated by the ESIC system, confirming your ESIC registration.

Q6. What is an ESIC sub-code?

Ans: This number is also a distinct identification number assigned to a subsidiary, branch office, sales office, or the main registered office of a covered factory or establishment, whether it’s in the same state or a different one.

Employers have the option to register any of these branches or sales offices through the ESIC Portal by utilizing their login credentials and the unique primary registration code number.

Q7. Does ESIC registration have maternity benefits?

Ans: Yes, under ESIC, female employees get paid leave during pregnancy and childbirth, covering 100% of average daily wages.

Q8. How many employees should an employer have to register under ESIC?

Ans: In India, under the Employees’ State Insurance Act, 1948, employers are required to register for the Employees’ State Insurance (ESI) scheme if they have 10 or more employees. In certain geographical areas and industries, the threshold for registration may be lower or higher. It’s essential to check with the local ESIC office or the official website of the ESIC for details.

Once an employer meets the minimum employee count requirement, they must register under the ESIC scheme within 15 days and start making the required contributions towards employees’ insurance and healthcare benefits.

Q9. What are the consequences of non-payment or late payment of employees’ contributions?

Ans: The consequences of non-payment or late payment of employees’ contributions to the Employees’ State Insurance (ESI) scheme in India can be significant. Firstly, employees may face difficulties in accessing healthcare and financial support in times of need, as their ESI coverage depends on regular contributions.

Secondly, employers may be subject to penalties, fines, and legal actions by the Employees’ State Insurance Corporation (ESIC), which can damage their reputation and financial stability. Ultimately, non-compliance can strain the employer-employee relationship and lead to a loss of benefits and trust. Timely and accurate ESI contribution payments are essential for both employees and employers to ensure the effectiveness of the scheme.

Q10. For how long can an employee and family avail of medical benefits?

Ans: When you start a new job covered by the scheme, you and your family can access medical benefits right away. For the first three months, you’re eligible for primary and secondary medical care. If you stay in a covered job for over three months, this benefit continues. If you’ve been in the scheme for at least 2 years, contributed for 156 days, and qualify for Sickness Benefits, you get medical benefits for up to 730 days over 3 years for yourself and your family if you have any of 34 specific long-term diseases.