Employee State Insurance Corporation or ESIC 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.
Social Security Benefits of ESIC Registration -
- In the private sector, Central Govt. pays the employers contribution for 3 years.
- A worker or his dependants who perform last rites receives an amount of Rs 10000/-.
- Physical rehabilitation is provided to the employee during injury or physical disablement.
- Retired and permanently disabled persons and their spouses can also receive good medical car.
- Insured employee and his family members receive good medical care without spending high on the treatment.
- Under Rajiv Gandhi Shramik Yojna, vocation training is given to the employee who became unemployed due to closure of factory.
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.
The registration of your company with the Employee State Insurance Corporation (ESIC) is mandatory for every employer where the number of employees is more than 10. The application must be moved within 30 days. Our dedicated team will help you to register your company with ESIC
- Drafting documents
- Issue of Digital Signature
- Filing of forms with Authorities
- Issue of ESIC allotment letter
Documents To Be Submitted
- Digital Signature of Proprietor/Partner/Director
- Address proof of partners, proprietor or directors as applicable
- PAN Card of entity
- Certificate of incorporation and address proof in case of company
- Shop and establishment Certificate/GST Certificate/ License issued by the government for factory
- Bank Account Information (bank statement and cancelled cheque)
- Employee’s Basic and Salary details
FAQ (Frequently Asked Questions)
Yes, it is a mandatory requirement for every employer who comes under this act to register their Factory/ Establishment.
Every employer covered under this act has to comply with various compliances such as the deposit of monthly contribution, in order to file half yearly return and report to ESIC authorities if there is any change in business activity, address, ownership, and the management, maintenance of registers and records etc.
It is a comprehensive Social Security Scheme designed to accomplish the task of socially protecting the ’employees’ in the organized sector against the events of sickness, maternity, disablement and death due to employment injury and to provide medical care to the insured employees and their families.
The contribution shall be paid in respect of an employee into a bank duly authorized by the Corporation within 21 days of the last day of the calendar month in which the contribution falls due for any wage period (Reg. 29 & 31).