ESIC is the abbreviation for Employee State Insurance Corporation, which is a multi-dimensional social security scheme that is typically designed to offer socio-economic protection to Indian workers employed in organised private sector companies along with their families in case of maternity, illnesses, disability as well as death. This scheme provides financial assistance along with medical care to all those who are insured under the ESI Act. Non-seasonal companies that have more than 10 workers (20 in some states), who have a maximum salary of Rs. 21000, need to register with the ESIC.
According to the Indian Government, the entities stated below here are covered under ESIC;
● Private educational establishments ● Movie theatres ● Shops ● Restaurants ● Hotels only engaged in sales ● Motor transport institutions (road only) ● Newspaper establishments
Employees that are registered with ESIC can enjoy a large number of benefits associated with it as listed below.
● Medical benefits are offered to the employees along with their families. ● Maternity benefits are provided for expectant mothers in the form of paid leaves. ● In case of death of an employee at the time of employment, dependents are rewarded with 90% of the salary in the form of monthly payments. ● If an employee is suffering from a prolonged illness, 70% of the monthly salary will be paid to him/her. This is possible if an unfit to work certificate is submitted by him/her. ● Funeral expenses are covered up to Rs. 15000. ● Medical expenses for old age issues are also provided. ● In case of temporary or permanent disability of the employee, their salary will be paid in monthly instalments to the ratio of 90%.
The ESIC registration programme is especially tailored to offer perks to employees working in private sector companies in the case of unforeseen situations. Earlier on, the registration process used to be manual but now, it has strictly become an online procedure and is mandatory for both, the organisation and the employees. The following simple steps need to be adhered to when doing the registration process:
1. Log in to the ESIC portal - You need to sign up on the ESIC portal on the home page at www.esic.in and fill in all the required details on the sign up page after which you can go ahead with the login process. 2. Save User ID and Password – Once the sign-up process is complete, an email will be sent to the registered email ID along with a designated user ID and password. This is an important step, and you should save these for future log in process. 3. Fill Registration Form – After signing up, the employee can login and open the registration form which can be derived from the ‘new employee’ tab. Once this form is open, it needs to be filled completely, after which the registration is confirmed. New registration form also needs to be filled by the employee in which the details of the organisation along with the details of the employer. Once this is done, you can click on submit and your work is done. 4. Make Payment – The registration will only follow through once the advance payment has been made. Once you have clicked on the payment tab and made the payment as per instructions, the registration will be complete. 5. Registration Number – A registered letter called c-11 that contains a unique registration number of 17 digits is sent to you in one final step. The ESIC system portal sends this as a confirmation of registration.
1. Log in to the ESIC portal - You need to sign up on the ESIC portal on the home page at www.esic.in and fill in all the required details on the sign up page after which you can go ahead with the login process.
2. Save User ID and Password – Once the sign-up process is complete, an email will be sent to the registered email ID along with a designated user ID and password. This is an important step, and you should save these for future log in process.
3. Fill Registration Form – After signing up, the employee can login and open the registration form which can be derived from the ‘new employee’ tab. Once this form is open, it needs to be filled completely, after which the registration is confirmed. New registration form also needs to be filled by the employee in which the details of the organisation along with the details of the employer. Once this is done, you can click on submit and your work is done.
4. Make Payment – The registration will only follow through once the advance payment has been made. Once you have clicked on the payment tab and made the payment as per instructions, the registration will be complete.
5. Registration Number – A registered letter called c-11 that contains a unique registration number of 17 digits is sent to you in one final step. The ESIC system portal sends this as a confirmation of registration.
The following mentioned documents would be required for being able to do the ESIC registration successfully.
● Registration certificate obtained either under the Shops and Establishments Act or the Factory Act. ● Certificate of registration or partnership deed if the business is a partnership-based establishment. ● Memorandum of Associations (MOA) of the company. ● Articles of Association (AOA) of the company. ● Attendance registers of all the employees. ● A list of all the employees working within the establishment along with all necessary identification papers. ● Family details of all the employees. ● PAN card of both, the company as well as the employees. ● A cancelled cheque from the company’s bank account. ● A list of all the directors of the company. ● A scanned copy of all the licenses that the company receives such as GST, etc. ● A list of all the shareholders of the company. ● Compensation details of all the employees. ● Proof of address of all the directors, partners and owners, as applicable. ● Digital signature of the owner, partner or directors as applicable. ● Cell phone numbers and email ids of the proprietor, partner or director as applicable.
The following demonstrated table will give you a brief but complete idea of the ESIC scheme with its benefits, amounts and eligibility.
Benefits of ESIC
ESI Amount
Eligibility
Benefits related to Illnesses
No limit
Any employee that is officially registered under the ESI Act
Benefits related to Medical costs
0% of the daily wages calculated for a period of 91 days
Minimum of 78 days work contribution within a period of 6 months by an employee will be valid
Benefits towards disability
90% of the employee’s wages
In case the said injury happens at the workplace during official work hours
Benefits towards death
90% of the employee’s wages paid on a monthly basis
In case death occurs at the workplace during official work hours
As established in the article above, all you need to know about this self-financing lucrative scheme has been mentioned. This is a great advantage for both employees and employers as it helps keep a tab of who is running as well as working in the establishment along with keeping things fair. For the employees, this is a great asset as in unsavoury circumstances, not only them, but their dependents also get financed. Employers on the other hand can control the workplace quality and ensure that they are also operating in fair practices. Now, with easy online registration, the process is less cumbersome and can be done within the comforts of your own home.
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