ESIC Registration, ESIC registration fees, ESIC registration process, how to apply ESIC online, Ebizfiling

Everything you need to know on ESIC Registration

ESIC registration, its process, and how to apply ESIC online

This blog focuses on Employee State Insurance Corporation (ESIC) registration fees, the ESIC registration process, “How to apply ESIC online?” Every state provides Employee State Insurance (ESI) registration to employees and their families in order to provide some level of security. Employee State Insurance Corporation, a self-financing, autonomous body governed by the ESI Act 1948, provides this registration.

 

What is ESIC?

Employee State Insurance (ESI) is administered by the Employee State Insurance Corporation (ESIC), an autonomous organization within the Ministry of Labor and Employment of the Government of India.

 

For Indian laborers, the ESI program was established. Under the ESI Act, workers are entitled to a wide range of medical, monetary, and other benefits as a result of contributions made by both the employer and the employee to the ESI program.

Information on the eligibility for ESIC Registration

The company is required to contribute 4.75 percent of the entire monthly wage payable to the employee, whereas the employee is simply required to contribute 1.75 percent of his monthly salary every month of the year under this system. Only employees earning less than INR 137 per day are excused from paying their contribution.

 

Any non-seasonal factory or company with more than 10 employees (in some states, 20 employees) earning between INR 15,000 to INR 21,000  is required to register with the ESIC within 15 days of its application date.

 Organization that is required to provide ESIC registration

  • Private Educational Institution
  • Private Medical Institution
  • Shops
  • Hotels and Restaurants only in sales
  • Road motor transport Establishment
  • Cinemas
  • Newspaper establishment – that is not covered under the Factory Act

When there is more than 10 employee in the above organization at that time it is essential for the organization to register under ESIC (Employee State Insurance Corporation).

Advantages of ESIC Registration

  • Employees and their dependents are covered by medical insurance.
  • Sick pay of 70% (in the form of a wage) in the event of a certified sickness lasting no more than 91 days in any calendar year.
  • If an employee dies while on the job, his dependents receive 90 percent of his wage in a monthly reimbursement after the person’s death.
  • Pregnant Women’s Maternity Benefits (paid leaves).
  • Funeral expenses.
  • The costs of medical care for the elderly.

How to apply for ESIC Online?

Below are the 5 steps process for the ESIC Registration, ESIC Registration process starts with the Login into the portal, and the last step towards the ESIC Registration process is generating a registration letter.

Step 1: Log in to the portal

Employers must create an account on the ESIC Portal. They can do so by logging into the ESIC portal and clicking the ‘Sign Up‘ button beneath the ‘Employer Login’ option on the home screen. After pressing the ‘Sign up’ button, employers must fill out the form.

Step 2: Login details

The employer will receive an email confirmation of the email address and mobile number supplied during registration after completing the portal registration application. The login information needed to register as an ESIC employee or employer will be included in the email.

Step 3: Registration of Employee Form-1

To log into the ESIC portal at the third stage, use the username and password provided in the email. On the next page, this will change to “New Job.” Registration of a new business: Select ‘New Employer Registration’ from the drop-down menu. When you are finished, choose ‘Unit Form’ from the drop-down menu and press the ‘Submit’ button. A ‘Register of Employers’ form will appear, and the employer must fill it out. This registration contains information about both the boss and the employees. To finish the application form, the employer must click the ‘Submit’ button once all of the fields have been filled out.

Step 4: ESIC Registration Fees

The employer will be directed to the ‘Payment of Advance Contribution’ tab after submitting the Employer Registration Form-1, where they must input the amount to be paid and select the payment mechanism. Employers need to pay the six-month deferred contribution.

Step 5: Registration letter generated

The ESIC department gives the employer a system-generated Registration Letter (C-11) with a 17-digit Registration Number after the employer successfully pays the six-month advance contribution. The employer’s registration is documented by the Registration Letter (C-11).

Documents required for ESIC Registration

  • MOA and AOA
  • The business establishment’s PAN card, as well as the PAN cards of all employees that work there.
  • Certificate registration under Factory Act or Establishment and Shop Act
  • Utility invoices or a rental agreement can be used as proof of residence.
  • In the case of a company, a certificate of registration is required, as is a partnership deed in the case of a partnership firm.
  • All of the employees’ remuneration information.
  • A canceled check from the company’s bank account.
  • The details of the company’s board of directors.
  • Information on the company’s stockholders.
  • Employee attendance is recorded on this register.
  • Information on all the employees of the organization.

A list of the returns needs to be filed for ESIC Registration

Employers must file ESI Returns every six months after registering with the ESIC. The following documents must be submitted with the returns:

  • Form 6
  • Register of the employee attendance
  • Any accident that happened in the premises need to be registered
  • Challans and monthly returns
  • Registration of wages

FAQs on Employee State Insurance Corporation (ESIC)

1. What is the penalty for failing to pay an employee’s contribution from his or her wage on time?

When an employer who is registered with the ESIC fails to pay the required contribution to an employee’s ESIC, the employer will be liable to pay simple interest at the rate of 12% per year for each day the contribution is late or not paid.

2. What is the number of the ESI Code?

The ESI Code number is a unique 17-digit identification number assigned to each employee of an ESIC-Registered factory or facility. After the employer has entered their employee’s details into the ESIC site, a 17-digit number is generated.

3. What will be the eligibility criteria for ESI benefits?

The employee’s or worker’s monthly wage must not exceed INR 21,000 for non-disabled individuals and INR 25,000 for disabled people to be eligible for the ESI Scheme.

4. Is it necessary to enroll in the ESIC Program?

Employees of any firm or organization covered by the ESIC statute of 1948 are required to enroll in the scheme.

Conclusion

In this program, the employer is required to contribute 4.75% of the entire monthly wage due to employees. Employees, on the other hand, are required to contribute 1.75% of their monthly wage per year.

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Author: zarana-mehta

Zarana Mehta is an MBA in Finance from Gujarat Technology University. Though having a masters degree in Business Administration, her upbeat and optimistic approach for changes led her to pursue her passion i.e. Creative writing. She is currently working as Content Writer at Ebizfiling.

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