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Discover what ESIC (Employee State Insurance Corporation) registration is and its significance under the Employees’ State Insurance Act, 1948. This mandatory registration provides medical and cash benefits to employees and their dependents in cases of sickness, maternity, disablement, or death due to employment injury. Learn everything you need to know about ESIC registration here.
5 May 2024
Afinthrive Advisory
Purpose of ESIC Registration
ESIC registration is aimed at providing social security to employees by ensuring access to medical care and financial assistance during times of need. It covers various contingencies such as sickness, maternity, disablement, and death due to employment injury.
Applicability
ESIC registration is mandatory for factories and other establishments notified under the Employees’ State Insurance Act, 1948. It applies to entities with ten or more employees (twenty or more in certain states).
Registration Process :
Benefits of ESIC Registration :
Who needs to register for ESI? (What establishments need ESI registration?) :
Rate of Contribution towards ESIC
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.
However, this rate keeps on changing from time to time.
Contribution Period and Benefit Period
There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration.
ESIC registration is a statutory responsibility of the employers of the factory. It is mandatory according to the rules and regulation of the ESI Act 1948.
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Understand the critical compliance requirements, legal responsibilities, and provisions related to ESIC registration for employers.
Employers must comply with ESIC mandates such as registering eligible employees and ensuring timely contributions.
Compliance Responsibilities
Maintain employee records, submit contribution statements monthly, and report workplace injuries or incidents as required.
Monthly Reporting
ESIC registration remains valid as long as the establishment functions and complies with ESIC regulations.
Validity
Non-compliance can result in financial penalties, legal action, and loss of ESIC benefits for employees.
Penalties for Non-Compliance
Some employees or establishments may qualify for exemption based on criteria outlined in the ESIC Act.
Exemptions
Employers should stay updated with ESIC rules to ensure proper benefits for their workforce and avoid legal issues.
Additional Information
Here are some key advantages of ESIC registration
ESIC provides comprehensive medical care to insured employees and their dependents. This includes outpatient treatment, specialist consultation, diagnostic tests, hospitalization, surgeries, and maternity benefits.
ESIC offers cash benefits to insured employees during periods of sickness, maternity, disablement, or death due to employment injury. These benefits include sickness benefit, maternity benefit, disablement benefit, dependent’s benefit, and funeral expenses.
ESIC registration provides financial security to employees by ensuring access to medical care and financial assistance during times of need. It helps employees and their families cope with medical emergencies and unforeseen circumstances without facing financial hardship.
By availing medical services through ESIC dispensaries, hospitals, and clinics, employees can significantly reduce their out-of-pocket healthcare expenses. ESIC covers a wide range of medical treatments and procedures, thereby alleviating the financial burden on employees.
Access to quality healthcare and timely medical intervention under ESIC leads to improved health outcomes and faster recovery for employees. This, in turn, enhances productivity levels as employees are better able to perform their duties without being hampered by health issues.
ESIC registration demonstrates an employer’s commitment to the welfare and well-being of their workforce. It fosters a positive work environment and strengthens employee morale by providing them with essential healthcare and financial support.
ESIC registration is mandatory for certain categories of employers under the Employees’ State Insurance Act, 1948. Compliance with ESIC regulations ensures that employers fulfill their legal obligations towards providing social security benefits to their employees.
Offering ESIC benefits can make an employer more attractive to potential employees and aid in retaining existing talent. Employees value access to healthcare and financial security, and ESIC registration signals that the employer prioritizes these aspects.
By providing timely medical care and support, ESIC helps in reducing absenteeism due to illness or injury. Employees are more likely to seek medical treatment promptly, leading to quicker recovery and fewer days off work.
Employers registered under ESIC may be eligible for various government subsidies, incentives, and support schemes aimed at promoting employee welfare and social security.
Get Answers to your most asked questions.
ESIC registration is a mandatory registration for employers under the Employees’ State Insurance Act, 1948. It provides medical and cash benefits to employees and their dependents in case of sickness, maternity, disablement, or death due to employment injury.
Employers of factories and other establishments notified under the Employees’ State Insurance Act, 1948 need to obtain ESIC registration. It applies to entities with ten or more employees (twenty or more in certain states).
Benefits of ESIC registration include access to medical benefits such as outpatient treatment, hospitalization, maternity benefits, and cash benefits such as sickness benefit, maternity benefit, disablement benefit, dependent’s benefit, and funeral expenses.
Employers can apply for ESIC registration online through the ESIC portal (www.esic.in) by filling out the required forms and submitting necessary documents such as PAN card, address proof, and details of employees.
No, there is no registration fee for ESIC registration. The process is free of cost and can be completed online.
Documents required for ESIC registration include PAN card of the employer, address proof of the establishment, registration certificate, and details of employees such as Aadhaar card, PAN card, and bank account details.
Both employers and employees contribute to the ESIC fund. The current rate of contribution is 4% of the wages, with the employer contributing 3.25% and the employee contributing 0.75%.
Employers need to comply with various obligations such as maintaining registers, submitting monthly contribution statements, providing medical facilities, and reporting accidents.
ESIC registration is valid as long as the establishment is operational and complies with the provisions of the Employees’ State Insurance Act, 1948.
Failure to register with ESIC or comply with its provisions may attract penalties, fines, and legal actions against the employer.
