ESIC Registration
The government introduced the ESI scheme for Indian workers. ESI stands for Employee State Insurance managed by the Employee State Insurance Corporation (ESIC). The ESIC is an autonomous body created by the law under the Ministry of Labour and Employment, Government of India.
ESI scheme provides social security to the workers. Employers and employees contribute a percentage of employee's wages towards ESI every month. Huge variety of medical, monetary and other benefits are provided to workers covered under the ESI Act.
Any non-seasonal factory or establishment having more than 10 employees (in some states it is 20 employees) who have a maximum salary of Rs. 21,000/- are covered under the ESI scheme and thus, they have to mandatorily register with the ESIC within 15 days from the date of its applicability.
Under this scheme, the employer needs to contribute an amount of 3.25% of the total monthly salary payable to the employee whereas the employee needs to contribute only 0.75% of his monthly salary every month of the year. The only exemption to the employee in paying his contribution is whose salary is less than Rs. 176/- per day.
As per the government notification, under Section 1(5) of the ESI Act the following entities are covered:
When the above-mentioned establishments employ 10 or more persons, the owner/employer of the establishment must compulsorily register it with the ESIC.
Earlier, there was manual registration. Now, the ESIC registration is completely online. Following are the steps involved in ESIC Registration:
The establishment needs to comply with the following after registering under the ESIC:
After the registration under the ESIC, the employers have to file ESI Returns half-yearly. The following documents are required for the filing of the returns:
An employee of a factory or establishment registered with the ESIC can check their ESI registration details with the insurance number issued to the employee at the time of ESIC registration. The employee must visit the ESIC website, click on the ‘Insured Person Login’ button and enter the user number and captcha code. The user number is the insurance number of the employee.
Yes. All the employers who are covered under the ESI Act have to mandatory register themselves under the ESI scheme. The factories or establishments having more than 10 employees (in some states it is 20 employees) with a maximum salary of Rs. 21,000/- per month are covered under the ESI Act. They must register with the ESIC within 15 days from the time the organisation is covered under the ESI Act.
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