INTRODUCTION
In today’s world, ensuring the well-being of employees is a crucial aspect of running a successful business. The Employees’ State Insurance Corporation (ESIC) in India plays a significant role in providing social security and healthcare benefits to employees and their dependents. This blog aims to shed light on ESIC, including its purpose, benefits, and the process of registration.
ESIC: An Overview: The Employees’ State Insurance Corporation (ESIC) is a government-run social security and health insurance scheme established under the Employees’ State Insurance Act, 1948. Its primary objective is to protect employees and their families against unforeseen medical contingencies and provide them with financial support during periods of illness, disability, maternity, or death.
BENEFITS OF ESIC:
Medical Benefits: ESIC offers comprehensive medical benefits to insured employees and their dependents. This includes access to medical services, treatment, and necessary medications free of cost at ESIC dispensaries, hospitals, and tie-up medical institutions.
Sickness Benefits: In case of illness or non-occupational accidents, insured employees are entitled to receive cash benefits, which amount to 70% of their average daily wages. These benefits are payable for a maximum of 91 days in two consecutive benefit periods.
 Maternity Benefits: Female employees are provided with maternity benefits, including paid leave for a period of up to 26 weeks. During this time, they receive cash benefits equal to 100% of their average daily wages.
 Disablement Benefits: In the unfortunate event of permanent or temporary disablement due to employment-related injuries, insured employees are eligible for cash benefits. The amount is based on the extent of disability and the wages earned before the disability.
 Dependent Benefits: ESIC extends financial assistance to dependents of an insured person in case of their unfortunate demise due to employment-related accidents. The dependents receive a monthly pension equal to a percentage of the wages earned by the insured person.
ELIGIBILITY CRITERIA FOR ESIC REGISTRATION:
To register for ESIC, an employer must fulfil certain eligibility criteria. These criteria are determined based on the number of employees and the wages paid. Here are the key points regarding the eligibility criteria:
Minimum Number of Employees: The ESIC scheme applies to establishments with 10 or more employees. If an establishment has 10 or more employees, it becomes eligible for ESIC registration.
Wage Limit: The eligibility for ESIC coverage is also based on the wages paid to employees.
Geographical Limitation: ESIC coverage is provided in specified areas called “implemented areas.” The scheme applies to establishments located in these implemented areas, which are determined by the central and state governments.
Nature of the Establishment: ESIC is applicable to all types of establishments, including factories, offices, shops, hotels, restaurants, cinemas, and more. Both private and government establishments are required to comply with ESIC regulations if they meet the eligibility criteria.
PROCESS OF ESIC REGISTRATION
To register for ESIC, follow these steps:
Eligibility: Determine if your establishment meets the eligibility criteria, which typically requires a minimum of 10 employees in specified areas and wage limits within the prescribed range.
 Online Registration: Visit the official ESIC website (esic.in) and navigate to the employer registration section. Fill out the online registration form accurately, providing details about your establishment, including ownership information, employee details, and bank account information.
 Document Submission: Alongside the registration form, you must submit supporting documents such as the company’s registration certificate, employee list, address proof, PAN card, and bank account details.
 Verification: The ESIC authorities review your application and may conduct a physical verification of your establishment if necessary. They ensure compliance with the eligibility criteria and validate the information provided.
 Registration Certificate: Upon successful verification, ESIC issues a registration certificate containing a unique employer code. This code serves as an identifier for all ESIC-related transactions and communications.
REQUIRED DOCUMENTS
When registering for ESIC (Employees’ State Insurance Corporation), you will need to provide certain documents to complete the registration process. Here are the common documents required for ESIC registration:
Registration Certificate:
Copy of the registration certificate of your establishment, such as the Certificate of Incorporation for companies, Partnership Deed for partnership firms, or any other relevant document that proves the legal existence of your business.
Address Proof:
Any official document that serves as proof of the establishment’s address, such as a rental agreement, property tax receipt, or utility bill (electricity, water, etc.).
PAN Card:
Copy of the Permanent Account Number (PAN) card of the establishment. PAN is a unique 10-digit alphanumeric identification number issued by the Income Tax Department.
Bank Account Details:
Details of the establishment’s bank account, including the bank name, branch, account number, and IFSC code. These details are necessary for processing ESIC contributions and benefits.
List of Employees:
A comprehensive list of employees working in your establishment. This list should include their names, addresses, Aadhaar card numbers, date of joining, salary/wage details, and other relevant employee information.
Identity Proof of Authorized Signatory:
Copy of the identity proof of the authorized signatory who will represent the establishment during the ESIC registration process. This can be an Aadhaar card, voter ID, passport, or any other valid identity document.
Photographs:
Recent passport-sized photographs of the authorized signatory.
COMPLIANCE WITH ESIC REGULATIONS
Compliance with ESIC regulations and the maintenance of accurate records of employees are crucial for employers. It ensures adherence to the legal requirements and enables the smooth functioning of the ESIC scheme. Here are the key points to highlight the importance of compliance and the ongoing responsibilities:
- Legal Compliance:
  – Complying with ESIC regulations is a legal obligation for employers. It helps ensure the well-being of employees and their access to social security benefits.
  – Non-compliance can lead to penalties, legal issues, and reputational damage for the establishment. It’s essential to understand and adhere to the rules and regulations set forth by ESIC.
- Â Timely Payment of Contributions:
  – Employers are responsible for timely payment of ESIC contributions. These contributions are a percentage of the wages paid to employees and are shared between the employer and the employee.
  – Timely payment of contributions is essential to maintain the active status of the establishment and the coverage of employees under the ESIC scheme.
  – Failure to make contributions on time may result in penalties, interest charges, and even suspension of ESIC benefits for employees.
- Â Filing of Returns:
  – Employers are required to file various returns and forms with ESIC regularly. These returns provide information about the establishment, its employees, wages, contributions, and other relevant details.
  – Filing returns accurately and within the prescribed timelines is essential for maintaining compliance with ESIC regulations.
  – Neglecting to file returns or providing incorrect information may lead to fines, penalties, and disruptions in the benefits received by employees.
- Accurate Record-Keeping:
  – Employers must maintain accurate records of employees, including their personal details, employment dates, wages, attendance, and other relevant information.
  – Accurate record-keeping ensures proper administration of ESIC benefits and helps in case of any disputes or claims.
- Compliance Audits and Inspections:
  – ESIC authorities may conduct periodic audits and inspections to ensure compliance with regulations.
  – Employers should be prepared for such audits by maintaining organized records and promptly addressing any issues or discrepancies identified during the process.
