It is a social security program that offers medical and disability benefits to employees through the Employees State Insurance program. Under the Employee State Insurance Act, of 1948, is overseen by the Employee State Insurance Corporation. ESIC provides this coverage to all employees across the country. It falls under the Ministry of Labour and Employment’s autonomy.
Is it necessary to do it?
Entities eligible for ESIC registration include
- A company/entity must have at least 10 employees (20 in some states).
- In addition, if all the employees earn under Rs.21,000 per month, the employee pays 1.75% and the employer pays 4.75%, which amounts to 6.50%.
- In companies/industrial units where 50-90% of injuries occur in the office, it is mandatory.
- It is a requirement for businesses employing 10 (or more in certain States) or more people to register with ESIC online, including shops, hotels, restaurants, cinemas including preview theatres, road transport undertakings, newspapers, and private medical and educational institutions.
- To be eligible for ESIC registration, it isn’t enough to employ 20 people. The amount of wages is determined by Section 2(9) of the ESI Act.
The documentation process for ESIC registration
- Factory registration certificate; shop registration certificate; establishment registration certificate if it is a shop or establishment.
- The registration certificate if it is a company, or the partnership deed if it is a partnership.
- Memorandum of Association or Articles of Association of the company
- Employees’ compensation details listed
- Here is a list of all the directors, partners, and shareholders, along with their addresses
The ESIC registration process can be completed online
- First, go to www.esic.in and click on signup
- Click submit after entering the company name, Principal employer name, state, region, email address, and phone number.
- For login credentials, check your email.
- Log in using the information you received in the mail, then click “new employer registration.”
- Choose whether you are operating a shop, a company, or a partnership.
- A new form appears with all fields marked with an asterisk (*) mandatory.
- Your credentials will be checked after you have filled in all the necessary information.
- A new 17-digit exceptional character will be assigned to the association.
- A photo with subtle elements of a relative will be required for employees registered for ESI in order to receive an ESI card
- If any amendments need to be made to the ESI registration, ESI needs to be notified.
ESIC registration’s drawbacks
ESIC registration still has some drawbacks, despite the fact that they are few.
- All expenses may not be covered by the cash deposited
- For such security, inflation adds insult to injury
- It is possible to use the money deposited for other business purposes as well
FAQs on Online ESI Registration
How does an insurance number work?
The ESI scheme assigns a unique number to every employee for identification purposes, which is known as the insurance number.
ESIC Act registration is required by law for employers?
Every employee in India must register for ESI. It is considered a statutory obligation. Factory owners or establishment owners have 15 days from the date they become eligible to apply for the scheme.