Introduction to Employee State Insurance (ESIC)
An autonomous body created by the law under the Ministry of Labour and Employment, Government of India is known as Employee State Insurance Corporation. This scheme is started for Indian workers. The workers get a huge variety of medical, monetary and other benefits in accordance with the ESIC Schemes.
Who needs ESIC (Employee State Insurance) Registration?
Any company/organisation with more than 10 employees (in some states there are 20 employees) with a maximum salary of Rs. 15000/-must register with the ESIC on a mandatory basis.
Under this arrangement, the contractor may commit a sum of 4.00 per cent of the total monthly salary payable to the employee, whereas the employer must contribute just 1.00 per cent of the monthly salary charged to the employee per month.
ENTITIES COVERED UNDER ESIC:
As per the government notification dated Sec 1(5) of the ESI Act the following entities are covered:
âž² Shops
âž² Restaurants or Hotels only engaged in sales.
âž² Cinemas
âž² Road Motor Transport Establishments;
âž² Newspaper establishments (which is not covered under the factory act)
âž² Private Educational Institutions
Benefits of ESIC Registration
âž² Sickness benefits at the rate of 70% (in the form of salary), in case of any certified illness certified and which lasts for a maximum of 91 days in any year
âž² Medical Benefits to an employee and his family members
âž² Pregnant women get (paid leaves) as maternity benefits.
âž² If the death of the employee happens while on work – 90% of the salary is given to his dependents every month after the death of the employee
âž² Same as above in case of disability of the employee
âž² Funeral expenses
âž² Old age care medical expenses
Documents required for ESIC Registration
âž² Certificate of Registration under one of the following:
âž² Factories Act
âž² Shops and Establishment Act
âž² Partnership Deed in case of a Partnership
âž² Certificate of incorporation in case of a company or LLP.
âž² Memorandum and Articles of Association of the Company
âž² An elaborate list of all the employees working in the Establishment
âž² Pan Card of the Business Entity as well as all its Employees.
âž² Details of remuneration all the employees
âž² A cancelled cheque of the current Bank Account of the Company
âž² List of the Directors of the Company as on the date of application
âž² List of the Shareholders of the Company as on the date of application
âž² Attendance Register of all the employees of the Company
Process of ESIC Registration
Step 1:
Application is to be prepared in the prescribed format (Form No – 1) along with all the attachments with the ESIC Department online.
Step 2:
Form No -1 should be submitted online along with its attachments as prescribed by the Department
Step 3:
After scrutinising the form, the ESI authority will issue a 17 digit unique Registration number
Step 4:
The employees who are registered under this scheme shall provide the employer with the filled form and photographs of his own family members as a part of the process of registration and will get an ESI card after registration
Step 5:
Any change in the Company or its employees shall be mandatorily intimated to the ESIC
Annual Compliance under ESIC
Every company/establishment registered under ESIC has to file half yearly returns and also annual returns. All the changes made to the employees during the year must be intimated to the department at the time of filing the ESIC annual return. After the registration ESI Returns have to be filed twice a year. The following documents are required for the filing of the returns:
1. Register of Attendance of the Employees
2. Form 6 – Register
3. Register of wages
4. Register of any accidents which have happened on the premises of the business
5. Monthly returns and challans