ESIC Registration: Benefits, Documents Required & Process

Introduction

Employee State Insurance Corporation (ESIC) Registration is considered as one of the important registration for businesses. This registration enhances social security of the businesses. Also it provides healthcare benefits to the employees of the company/business. This Registration is governed by the ESI Act, 1948. This scheme can be used as a financial support at the time of medical emergencies, maternity, or any other disability. In this article, you’ll get the complete details related to the importance of ESIC registration, its eligibility criteria, required documents, and the process with Bizfoc.

What is ESIC Registration?

In order to provide social security and health insurance benefits to the employees, businesses register themselves with the Employees’ State Insurance Corporation (ESIC). This process of registering with ESIC is known as ESI or ESIC Registration. As per Employees State Insurance Act, 1948, this registration helps the employees in case of Medical care, sickness benefits, maternity benefits, disability benefits, and dependent benefits. ESIC Registration works as a safety net for employees against various health related factors.

Eligibility Criteria for ESIC Registration

Following is the eligibility criteria for ESIC Registration:

• In case, more than 10 employees in any non-seasonal factory or establishment, where employees have a basic wages of up to ₹21,000/- per month, need to do ESIC Registration.
• However, the wage limit for people with any disability is up to ₹25,000/-.
• Also, these establishments need to register with ESIC within the 15 days after completing the eligibility criteria.
• Under this scheme, employers need to contribute 3.25% of the employee’s total monthly wage. However, employees contribute 0.75% of their monthly wage.
• Apart from this eligibility criteria, employees having less than ₹176 earning per day are exempt from this scheme and it is not mandatory for them to register under this ESI Scheme.

Documents Required for ESIC Registration

Following are the documents required for ESIC Registration:

• List of directors and Shareholders of the company.
• Attendance list of all the employees.
• Registration Certificate obtained either under the Factories Act, or Shops and Establishment Act.
• Certificate of incorporation of the establishment is required. It can be a company registration certificate in case of a company, a partnership deed or GST certificate of the establishment.
• Memorandum of Association and Articles of Association of the company.
• Address proof of the establishment. Utility Bills such as electricity bill, gas bill or telephone bills, Rental Agreement or Property Tax Receipt, etc can be used for address proof.
• A list of all the employees working in the establishment.
• PAN Card of the business establishment and employees working in the establishment.
• Compensation details of all the employees.
• Cancelled cheque of the bank account of the company.
• Other required documents etc.

ESIC Registration Process

Following are the steps for ESIC Registration:

• Step 1: Login to ESIC Portal: In order to complete ESIC Registration, one needs to Login to ESIC Portal.
• Step 2: Mail Confirmation: After Login to ESIC Portal, one confirmation mail will be sent to the employer on the mail ID he/she submitted at the time of login. In this mail he/she will get the username and the password details for registering as an employer under ESI Scheme.
• Step 3: Filing Registration Form: After getting user Id and Password, you need to fill the registration form for ESI Registration.
• Step 4: Registration Payment: Once you fill up the application form, you need to complete the registration payment process. After doing a six month advance Payment, you are all set to get an ESIC Registration Letter.
• Step 5: ESI Registration Letter: The ESI Registration Letter (C-11) is a valid proof of resignation of the employer.

Benefits of ESIC Registration

Following are the benefits of ESIC Registration:

• Medical Benefits: ESIC Registration provides medical benefits not only to an employee but also to his/her family member.
• Sickness Benefits: ESIC Registration offers a period of 91 days in any year in case of any certified illness at the rate of 70% of wages.
• Maternity Benefits: ESIC Registration offers maternity benefits for pregnant women at the rate of full wages for 26 weeks. However, it can be extended by one month.
• Dependent Benefits: In case of death of the employee at the time of employment either any injury or occupational hazards, 90% of wages is given to his family on monthly basis after his/her death.
• Temporary Disability Benefits: In case of temporary disability due to employment, the employee will get 90% of wages till his disability continues.
• Permanent Disability Benefits: In any permanent disability, 90% of wages is given every month depending upon the extent of loss of earning capacity. This loss is decided depending on the medical board.
• Funeral Expenses: In case of death, ₹15,000 is given to the dependents of the employees or the person who performs the last rites of the employee.

Why Bizfoc?

Bizfoc ensures a seamless and hassle-free ESIC registration process with their team of experts handling everything from documentation to approval. We prioritize reliable service tailored to your business needs, whether you're a startup or a large organization. Our cost-effective solutions ensure compliance with labor laws without burdening your budget. With a commitment to excellence, we try to secure your employees' future while supporting your business growth.

Conclusion

ESIC registration is not just a legal obligation but a step toward fostering a secure and supportive work environment for your employees. By ensuring timely registration, you provide your workforce with essential social security benefits, boosting their morale and productivity. Simplify the process and stay compliant with Bizfoc’s expert assistance. Let us handle the complexities while you focus on growing your business. Secure your employees’ future today with hassle-free ESIC registration.

Frequently Asked Questions