The Employee State Insurance (ESI) registration is provided to employees of every state to ensure some security level to the employees and their families. This registration is provided under Employee State Insurance Corporation ESIC, which is a self-financing, autonomous body controlled by the ESI act 1948. Provisions of the ESI act 1948 makes it obligatory for every employee who exceeds the minimum bar of a maximum salary of 15,000. For employees working on large scale or small scale industries, the ESI registration provides social security, which comes in the form of medical or financial aid in case of an emergency.
About ESIC Registration
ESI registration is a scheme introduced to provide social security to workers working in any organized private sector companies. This scheme works in a way that in case of any unforeseen circumstances related to the health of the employee or his or her family, a registered employee can get immediate treatment. During the working years of an employee, he or she can get all the benefits from the ESIC registration as many times needed. In case of any injury of the employee during the working years, the worker is provided with every document of his inability to work, which in turn ensures his salary at the end of the month. This scheme serves thousands of employees every year who otherwise would be unable to pay the hefty amount needed for the treatment. Under the ESI Act, 1948, every organization which has more than 10 employees is bound to provide ESIC registration. This compulsion for registration applies to both the organization as well as the employee.
Question of Eligibility
Under the ESI act of 1948, the following organizations are required to provide ESIC registration to their employees:
- Restaurants and shops
- Construction companies
- Employees working in theatres and cinemas
- Editing and publishing house
- The state or Central government does not aid educational institutions and Hospitals.
Apart from these organizations, any other organization with more than 10 employees drawing a monthly salary above 15,000 is eligible for the ESIC registration.
Process of Registration
The process of ESIC registration has become an easy task since it shifted from manual registration to online registration. By following a few steps and verifying the testimonials, one can easily get registered in almost no time.
Step-1– The very first step to get registered is to sign up in the ESIC portal. Signing up is easy as it is the first thing that pops up when any new employee opens the portal. Once you sign up with the required details, the first step is completed.
Step- 2– After signing up with the required details, the employee will receive a mail on his registered mail id, confirming the username and password provided. This username and password is very important, and it will help you open the portal as long as you are working under the organization.
Step-3– After the completion of signing up on the portal, the employee can log in with the username and password provided in the mail. Once you log in, a new page will open where the ‘registration form’ will appear for a ‘new employee’. This is the registration form that confirms your registration with ESIC. While filling up a form for ‘new registration’, the employee has to state the details of the organization along with the details of the employer. Once all the required information is provided, the employee has to click on the ‘submit button to complete the registration form’s filling.
Step-4– An employee is registered under the ESIC scheme only after the advance amount paid for the next six months. By clicking on the ‘payment ‘option and successfully following the payment procedure, the registration process will be completed.
Step-5– At this last step, the employee will receive the c-11 letter, which is the registered letter containing his unique registration number of 17 digits. This registration is generated by the ESIC system portal, which ensures that the employee is successfully registered for the ESIC scheme.
While filling up the registration for the employee had to provide a number of testimonials in order to verify his or her employment status. As the process of registration is online, the employee need not provide any hard copy of the documents. The testimonials are usually scanned and uploaded in the registration form. Following are some of the important documents needed at the time of registration:
- Copy of registration certificate of the organization
- Copies of the licenses issued in the name of the company.
- Copies of certificates of any partnership with any other firm
- List of directors and shareholders of the company
- Details of the owner, such as mobile number, address and digital signature
List of employees working in the organization accompanied by their details, such as date of joining, their designations, amount of salary drawn, mobile number and proof of identities like adhaar card, PAN card and the bank account number.
Benefits of ESIC Registration
Registered employees under the ESIC scheme can get a number of benefits from this scheme. The benefits range from financial help as well as medical help in the following cases:
- In case of prolonged illness of the employee, around 70% of the monthly salary can be claimed as long as the employee is not certified fit to resume work again.
- Benefits of the ESIC registration are not limited to the employee; it also provides medical aid to the employee’s immediate family at very nominal rates.
- Under maternity benefits, women can take leave for 26 weeks, which would be considered paid leaves.
- There is a provision for monetary benefits in case of any temporary or permanent injury of the employee during working hours.
- In the case of unemployment of the registered worker, if the cause of unemployment is not related to the employee, then the employee is provided with a minimum grant for a period of two years.
- In case of the death of the employee during working hours, the immediate family can claim 90% of his salary for every month.
- Financial aid of up to 15,000 rupees is granted for the funeral of the registered employee.
- Other than these benefits, there are other benefits for registered employees after their retirement.
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ESIC Registration FAQs:
1. Is it compulsory to register under the ESIC scheme?
According to the ESIC act, 1948, employees of any establishment or organization that comes under this act are required to register themselves in this scheme.
2. Are the financial and medical benefits transferable?
No, these benefits can only be claimed by the registered employee and their dependents.
3. What is the code number of ESI?
On successful completion of registration, the employee is provided with a registration number of 17 digits. Once this number is generated, the employee and his/her family can avail the benefits of the scheme.
4. How does the ESIC scheme work?
As this is a self-financing scheme, a certain percentage of the monthly salary is deducted, which secures the employee’s medical and financial benefits during the working years.
5. Is this scheme applicable to employers?
Yes, employers are required to register themselves with the first fifteen days after the organization has come under the ESIC act. For registration of an employer, form no 01 has to be filed within the stipulated time.
6. Is the amount deducted from wages the same for all?
No, the basic pay for an employee to be registered is 15,000 and the minimum amount to be deducted for the scheme is 1.75% of the salary. If the salary of the employee exceeds 15,000, then the amount of deduction will also vary accordingly.
7. What is the time limit for submission of the contribution?
After the amount is deducted from the salary of the employees, the employer is required to pay the contributed amount to the bank, which governs the organization with fifteen days from the last day of the month.
8. Does delay in payment charge any interest?
Yes, Suppose the employer does not pay the contributed amount within the stipulated time period. In that case, he is liable to pay an interest of 12% annually according to delay in the number of days.
9. What is the registration of an insured person?
The registration process is compulsory as it records the data of the employee who is already insured at the time of joining the organization. After the registration, the insured employee will be provided with a Temporary Identification Certificate ( TIC). When the employee’s Adhaar card details are included in this TIC, a (Permanent Identification Certificate) will be generated. Which will work as the identification number of the insured employee for all benefits.
10. What is the identity card?
As mentioned above, the TIC, when linked with the employee’s adhaar card, generates the permanent Identification Certificate (PIC), which will have a photo of the employee and their immediate family members. This identity card has to be produced each time for availing the benefits from the ESIC scheme.