The Employee State Insurance Corporation (ESIC) is a statutory body that provides social security and health insurance to workers in India. ESIC registration is mandatory for employers with ten or more employees who pay wages up to Rs. 21,000 monthly.
Table of Contents
Employees covered under ESIC are entitled to various benefits such as medical care, sickness allowance, maternity benefits, disability benefits, and dependent benefits. Read this article to learn about the ESIC registration process, the benefits of ESIC, the ESIC document requirements, and the eligibility criteria for both employers and employees. We will also answer some frequently asked questions about ESIC registration.
What is ESIC?
ESIC stands for Employees’ State Insurance Corporation, a statutory body established under the Employees’ State Insurance Act 1948. ESIC (Employee's State Insurance Corporation) is like a safety net for workers and their families. Its main job is to help when something unexpected happens, like getting sick, having a baby, becoming disabled, or passing away due to a work-related injury. To ensure it can help, ESIC collects money from the workers and gets some from the government. This way, if workers face tough times, they and their families have some money and support to rely on.
The Employees' State Insurance Scheme covers employees who earn wages up to Rs. 21,000 per month and work in factories, shops, hotels, restaurants, cinemas, road transport, newspapers, private medical institutions, and educational institutions. The scheme also covers apprentices and trainees employed under certain conditions. The scheme does not cover casual.
Features of ESIC
ESIC aim to safeguard the interests of workers in the organized sector against the impact of sickness, maternity, disability, and death due to employment-related injuries. It has many features; some of the main features of ESIC are discussed below:
ESIC Contribution Structure
The Employees' State Insurance Corporation (ESIC) operates on a funding model that relies on contributions from employers and employees. The current contribution rate is 4% of the wages, with a nuanced distribution: 3.25% contributed by the employer and 0.75% by the employee. This financial collaboration forms the bedrock of ESIC's comprehensive support system for the workforce.
ESIC's Holistic Healthcare Ecosystem
ESIC's mandate extends beyond financial contributions; it embraces a commitment to healthcare for employees and their dependents. This commitment materializes through an expansive network of hospitals, dispensaries, and diagnostic centers strategically positioned nationwide. The spectrum of medical care encompasses primary, secondary, and tertiary services alongside proactive preventive and promotional health services measures.
Cash Benefits for Employees
ESIC goes beyond medical care, recognizing the broad challenges employees may face. In the event of sickness, maternity, disablement, or death due to an employment injury, ESIC steps in with tangible support. The cash benefits provided are calculated as a percentage of the employee's average daily wages, subject to specific conditions and predefined limits.
ESIC's Welfare Initiatives
ESIC's commitment extends beyond medical and financial assistance, encompassing a spectrum of welfare schemes and programs designed for the holistic well-being of employees and their dependents. These initiatives include vocational rehabilitation, physical rehabilitation, the provision of artificial limbs, funeral expenses, education allowances, and skill development programs.
ESIC Registration Eligibility
ESIC scheme is for workers paid less than Rs. 21,000 per month (Rs. 25,000 for disabled workers).
Some factories or businesses with more than 10 or 20 workers (depending on the state) must join the ESI scheme.
They have to register with ESIC within 15 days of starting the scheme.
The employer pays 3.25% of the worker’s monthly wage to the ESI scheme.
The worker pays 0.75% of his monthly wage to the ESI scheme.
Workers who earn less than Rs. 176 per day do not have to pay anything to the ESI scheme.
Documents required for ESIC Online Registration
To register for ESI online, you need these documents:
A certificate that shows your business is registered under the Factories Act or the Shops and Establishment Act.
A certificate that shows your business is a company, a partnership firm, or any other type of establishment.