ESIC stands for Employee State Insurance Corporation, which is a social security and health insurance scheme for Indian workers. It provides medical and financial assistance to the employees who are registered under this scheme. ESIC registration is mandatory for employers who employ more than ten employees.
Meaning and Definition: ESIC registration is a scheme that provides health insurance and social security to employees. It is a self-financing social security and health insurance scheme that provides medical, disability, maternity, and other benefits to the employees who are registered under this scheme.
Legal Provisions: ESIC registration is mandatory under the Employees’ State Insurance Act, 1948, which is regulated by the Employees’ State Insurance Corporation. The act provides for the establishment of an insurance fund to provide benefits to employees and their families.
Process: The process of ESIC registration in Bihar involves the following steps:
The employer needs to visit the official website of the Employees’ State Insurance Corporation and click on the ‘Registration’ tab.
The employer needs to fill in the required details, such as company name, address, email ID, mobile number, and other information.
The employer needs to provide the details of the employees, such as their name, address, salary, etc.
The employer needs to upload the required documents, such as PAN card, GST registration certificate, bank account details, and other documents.
The employer needs to make the payment of the required fees and submit the application.
Advantages: The advantages of ESIC registration in Bihar are:
Employees get health insurance and social security benefits.
It helps in improving the employee’s morale and motivation.
It helps in attracting and retaining talented employees.
Disadvantages: The disadvantages of ESIC registration are:
The employer needs to pay a contribution towards the insurance fund.
The employer needs to comply with the rules and regulations prescribed by the Employees’ State Insurance Corporation.
Types: ESIC registration can be of two types:
Primary registration: This registration is for new employers who are not yet registered with the ESIC.
Subsequent registration: This registration is for existing employers who have already registered with the ESIC.
Cost Involved: The cost involved in ESIC registration in Bihar includes the payment of contribution towards the insurance fund, which is calculated based on the employee’s salary.
Time Involved: The time involved in ESIC registration in Bihar can vary depending on the completeness of the application and the verification process. Generally, it takes around 15-20 days to complete the registration process.
Documents Required: The following documents are required for ESIC registration in Bihar:
GST registration certificate
Bank account details
Proof of the number of employees
Salary details of the employees.
ESIC scheme is started for Indian workers. The workers are provided with a huge variety of medical, monetary and other benefits from the employer. Any non-seasonal factory and company having more than 10 employees (in some states it is 20 employees) who have a maximum salary of Rs. 21,000/- has to mandatorily register itself with the ESIC.
In addition to financial assistance, ESI scheme extends medical care to the employees insured under the ESI Act and their families. It is a self -financing scheme and is funded by the contributions made by the employer as well as employees to the ESIC.
Entities covered under ESIC
As per the government notification dated Sec 1(5) of the ESI Act the following entities are covered:
- Restaurants or Hotels only engaged in sales.
- Road Motor Transport Establishments;
- Newspaper establishments (which is not covered under the factory act)
- Private Educational Institutions
Required Documents for ESIC Registration
Following are the documents required for ESIC Registration:
- Registration certificate as obtained under:-Factories Act and Shops and Establishment Act. Certificate of registration in case of a company and partnership deed for a partnership firm
- MOA and AOA of the company:- List of all employees working in the establishment along with employee details such as name, father’s name, mobile number, date of birth, date of joining, salary, postal address, name of the nominee, grade, identity proof such as PAN or aadhaar, bank account number etc.
- Attendance register of the employees
- PAN card of the business establishment
- Scanned copy of the licenses received by the company such as GST
- A cancelled cheque of the bank account of the company
- Digital signature of the proprietor, partner or director as the case may be
- Directors’ list
- Shareholders’ list
- Address proof of the proprietor, partner or the company directors as the case may be
- Mobile number and email id of prietor, partner or director of the company as the case may be.
Features of ESIC registration:
The ESI scheme managed by the Employees State Insurance Corporation provides a host of medical and sickness benefits to employees enrolled under the ESI Scheme:
- Medical Benefits: ESIC provides medical benefits to the employees and their family members for coverage of medical expenses from the first day of employment. There is no ceiling on the number of funds provided to the insured employees or the family members for the treatment.
- Sickness Benefits: Employees can claim 70% of their daily wages for a maximum period of 91 days during the sick leave. Employees enrolled in ESIC are ensured regular cash support during any sick leave availed. They can, however, receive the cash compensation for the sickness if they have contributed for 78 days in a contribution period of 6 months.
- Disability Benefits: In the case of temporary or permanent disability, ESIC ensures that the financial benefits are provided to the employee during the time of injury. In case of temporary disability, 90% of the wages are paid as long as the disability continues irrespective of the contribution period. Employees can receive disability benefits at the rate of 90% on a monthly basis depending on the loss of earning as certified by the Medical board.
- Maternity Benefits: Under the ESI benefits, ESIC provides the following compensation at the time of maternity:
- 100% of the daily wages for 26 weeks from the time of going into labour.
- Six weeks in case of a miscarriage.
- Twelve weeks of pay is provided in the case of an adoption.
- Death benefits: The family of the employee is provided 90% of the daily wages every month if the employee dies at the workplace.
There are several other ESI benefits offered by ESIC, which are Funeral expenses, Old age care medical expenses, Physical Rehabilitation and Vocational Training.
After the registration ESI Returns have to be filed twice a year. The following documents are required for the filing of the returns:
1. Register of Attendance of the Employees
2. Form 6 – Register
3. Register of wages
4. Register of any accidents which have happened on the premises of the business
5. Monthly returns and challans
Qus:- Who mandatorily required ESI registration?
Every shop, establishment, and factory having 10 or more employees requires to get register under Employees’ State Insurance.
How does ESI registration contribute in pension?
The employees covered under the ESI scheme are entitled to a family pension.
Qus:- How to Obtain the ESI card or Pehchan card?
The employer needs to download a Pehchan application form from the ESIC portal (www.esic.in) and fill in the details of the employee. The employee has to submit a family photograph containing the photos of the dependents and the employer has to attest the photograph.
ESIC registration is an important process for employers to provide social security and health insurance benefits to their employees. Here are some additional details on the benefits, requirements, and process of ESIC registration:
Benefits: ESIC registration provides several benefits to both employers and employees. Some of the key benefits include:
Health insurance coverage: ESIC provides medical benefits to employees and their families, including hospitalization, medical consultations, diagnostic tests, and medication.
Disability benefits: If an employee is disabled due to an injury or illness, ESIC provides a monthly cash allowance to the employee.
Maternity benefits: ESIC also provides financial assistance to female employees during pregnancy and childbirth, including medical expenses and paid maternity leave.
Funeral expenses: In case of the employee’s death, ESIC provides financial assistance to cover the funeral expenses.
Requirements: ESIC registration is mandatory for employers who employ ten or more employees. The following are the requirements for ESIC registration:
Employer’s PAN card
Proof of address of the employer
Bank account details of the employer
Identity proof of the authorized signatory
Salary details of the employees, including their names, addresses, and monthly wages
Registration certificate or license obtained under any law for the time being in force
Process: The process of ESIC registration involves the following steps:
Visit the official website of the Employees’ State Insurance Corporation and click on the ‘Registration’ tab.
Fill in the required details, such as company name, address, email ID, mobile number, and other information.
Provide the details of the employees, such as their name, address, salary, etc.
Upload the required documents, such as PAN card, GST registration certificate, bank account details, and other documents.
Make the payment of the required fees and submit the application.
Once the application is submitted, it is processed by the ESIC authorities. The employer is then issued a unique ESIC code number, which is used for all future transactions with the ESIC.
Cost Involved: ESIC registration involves the payment of a contribution towards the insurance fund, which is calculated based on the employee’s salary. The employer is required to pay 4.0% of the employee’s wages towards the insurance fund, while the employee is required to pay 1.75% of their wages towards the fund.
Time Involved: The time involved in ESIC registration can vary depending on the completeness of the application and the verification process. Generally, it takes around 15-20 days to complete the registration process.
Overall, ESIC registration is a crucial process for employers to ensure the social security and health insurance benefits of their employees. It provides financial security to employees and improves their morale and motivation, which in turn helps in attracting and retaining talented employees.