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Introduction & Applicability of ESIC
“Employees’ State Insurance (abbreviated as ESI) is a self-financing social security and health insurance scheme for Indian workers. For all employees earning ₹21,000 or less per month as wages, the employer contributes 4.75 percent and employee contributes 1.75 percent, total share 6.5% percent. This fund is managed by the ESI Corporation (ESIC) according to rules and regulations stipulated there in the ESI Act 1948, which oversees the provision of medical and cash benefits to the employees and their family. ESI scheme is a type of social security scheme for employees in the organized sector.
The Scheme has been extended to shops, hotels, restaurants, cinemas including preview theaters, road-motor transport undertakings and newspaper establishments employing 20 or more persons. The Scheme has been extended to Private Medical and Educational institutions employing 20 or more persons in certain States and Union Territories.
Advantages of ESIC Registration
Medical benefit consists of “full medical care” including hospitalization, free of cost, to the Insured Persons in case of sickness, employment injury and maternity
The Act provides for cash payment, besides free medical treatment, in the event of temporary or permanent disablement as a result of employment injury as well as occupational diseases
Sickness Benefit represents periodical cash payments made to an IP during the period of certified sickness occurring in a benefit period when IP requires medical treatment.
In case of death, as a result of employment injury, the dependents of an insured person are eligible for periodical payments. Pension at the rate of 40% more than the Standard Benefit Rate will be paid periodically to widow.
The benefit is payable in cash to an insured woman for confinement / miscarriage or sickness arising out of pregnancy / confinement or premature birth of child or miscarriage.
Funeral benefit is a cash payment payable on the death of an insured person towards the expenses on his funeral, the amount not exceeding Rs.2,500.
- Copy of PAN
- Mobile Number and Email Id
- Digital Signature in the name of Employer
- Address Proof of Registered office of the Company or business entity (Any License or certificate issued by government Authority)
- Proof of setup of Establishment
- Details of Employees including Name, Address, Date of Joining, Age, gender, mobile no. etc.
- Bifurcation of Salary structure of every employee
Procedure For Registration
Create Login ID(1 Working Day)
- After creation of Login Id and Password proceed for the registration by filing required details
Register Digital Signature Certificate(Same Day)
- Once the Registration over register Digital Signature
Document Submission(1 Working Day)
- After registering the Digital Signature fill detailed application and attach required documents. All the attachments must be digitally signed. Once all the documents submitted Online certificate shall be issued.
Frequently Asked Questions
What is ESI Scheme?
It is a comprehensive Social Security Scheme designed to accomplish the task of socially protecting the ’employees’ in the organized sector against the events of sickness, maternity, disablement and death due to employment injury and to provide medical care to the insured employees and their families.
How does the scheme help the employees?
The scheme provides full medical care to the employee registered under the scheme during the period of his incapacity for restoration of his health and working capacity. It provides financial assistance to compensate the loss of his/ her wages during the period of his abstention from work due to sickness, maternity and employment injury. The scheme provides medical care to his/her family members also.
Who administers the ESI Scheme?
The ESI Scheme is administered by a corporate body called the ‘Employees’ State Insurance Corporation’ (ESIC), which has members representing Employers, Employees, the Central Government, State Government, Medical Profession and the Parliament. The Director General is the Chief Executive Officer of the Corporation and is also an ex-officio member of the Corporation.
What is a Code number?
“This is also a unique identification number allotted to a sub-unit, branch office, sales office or Registered Office of a covered factory or establishment located in the same State or different State. The employer can register any Branch or Sales Office through ESIC Portal using his credentials.”
Is there any provision for 'exemption of a factory or establishment' from ESI Covergae?
Of course exemption is permissible from operation of provisions of the Act subject to the condition that the employees in a factory or establishment covered are other-wise in receipt of benefits substantially similar or superior to those provided under the ESI Act. The appropriate Government may grant exemption to such factory or establishment for a period of one year at a time prospectively in consultation with ESI Corporation. Application for renewal is to be made three months before the date of expiry of the period exemption.