ESIC REGISTRATION

ESIC is a program in which workers in India can invest in their own social security and health insurance. Created in 1948, this program is designed to assist employees and their families with various medical and financial benefits such as healthcare, disability, maternity, and more. This article will provide information about the registration process for ESIC, the advantages of being a part of it, and what documents are required for enrollment.

ESIC is a social security and health insurance program for workers in India. The program is self-financed and offers a range of benefits, including medical, disability, maternity, sickness, and death benefits for insured employees and their families. Employers with more than 10 workers are required to register with ESIC. In this article, we’ll cover the various types of ESIC registration, the registration process, necessary documentation, expenses, time frame, pros and cons, legal obligations, and regulations for ESIC registration.

TYPES/ PARTS OF ESIC REGISTRATION:

ESIC registration can be classified into two categories or sections.

To comply with regulations, companies with a workforce of over 10 individuals must register with ESIC. Within 15 days of the applicable start date, the employer must also register their employees.
If an employee’s monthly salary is below Rs. 21,000, they are qualified to register for ESIC. To enroll, they must complete the ESIC form through the internet.

BENEFITS OF ESIC REGISTRATION:

ESIC registration affords numerous advantages to both the employer and employees. A few of these advantages include:

Employees and their families have the right to receive medical attention and stay in hospitals for free in ESIC hospitals and clinics.
When an employee is unable to work because of illness or injury, they can receive a monetary compensation of up to 70% of their usual pay as sickness benefits.
Female workers have the right to take time off from work for maternity reasons and receive both financial compensation and medical assistance.
If an employee experiences a work-related injury or illness that results in either temporary or permanent disability, they have the right to receive a monthly payment as compensation.
In the event of an employee’s death caused by a work-related injury or illness, their dependents have the right to receive a monthly compensation.

ESIC REGISTRATION PROCESS:

If a company has 10 or more employees, including temporary and contract workers, it is mandatory for them to register under the ESIC Act. Registering is easy and can be done through the ESIC portal. The registration process involves following a set of steps.

Step 1: Visit the ESIC portal

To start the process, go to the ESIC website at https://www.esic.in/. Once you are on the homepage, select the ‘Register’ choice to continue.

Step 2: Fill the registration form

The screen will display a registration form. Enter essential information such as name, address, contact information, number of employees, and others.

Step 3: Generate temporary ESIC number

Once the registration form has been completed, a temporary ESIC number will be created and remain active for a period of 90 days.

Step 4: Submit the documents

The subsequent action involves uploading the necessary papers through the internet. These papers consist of PAN card, Aadhaar card, bank account information, and employee particulars.

Step 5: Verification

ESIC officials will authenticate the submitted papers and in case of their accuracy, the employer will be issued a permanent ESIC number.

Documents that are necessary for obtaining ESIC registration are:

To register with ESIC, the following papers must be submitted:

PAN Card
Aadhaar Card
Bank Account Details
Registration Certificate
Information about workers which includes their name, age, sex, income, and other related particulars.

COST AND TIME INVOLVED:

ESIC registration does not have any associated fees, but the employer has to contribute 4.75% of the gross salary of an employee towards ESIC. The registration process generally takes around 15-20 days.

DISADVANTAGES OF ESIC REGISTRATION:

ESIC registration has its drawbacks including:

The employer must provide 4.75% of the gross salary of the employee for ESIC.
ESIC offers coverage to only those employees who earn a monthly income of Rs. 21,000 or less.

Laws and regulations that determine the criteria for registering with the ESIC:

In India, employers who have a staff of over 10 people must comply with the compulsory ESIC registration. The demands and regulations for ESIC registration are legally binding.

The Employees’ State Insurance Act of 1948 is relevant to factories and businesses with at least 10 workers, as well as those involved in risky operations, no matter how many workers are involved.
Employers need to enroll their company and workforce with the ESIC within fifteen days from the commencement of the law. The enrollment procedure includes providing necessary records and personnel information.
Employers are obligated to provide 4.75% of their workers’ overall salary to ESIC, whereas employees themselves put aside 1.75% of their income towards the same system. These contributions occur every month.
The ESIC program caters to individuals who earn below Rs. 21,000 monthly by offering them different advantages including healthcare, disability, maternity, sickness, and death benefits.
Employers must keep and provide regular reports to ESIC officials regarding different records and returns. These may include keeping track and documentation of employee information, payrolls, and contributions, as well as submitting reports either on a monthly or quarterly schedule.
The ESIC officials can perform evaluations and assessments of the employer’s establishment to verify adherence to the regulations. Employers must collaborate with these inspections and audits and furnish essential data and records.

Employers who fail to meet the necessary legal standards and regulations for ESIC registration may face legal repercussions and fines. As a result, it is crucial for employers to abide by all ESIC registration terms and guidelines in order to prevent any potential legal complications.

CONCLUSION:

ESIC registration is mandatory for all employers who have 10 or more employees. The registration process is simple and can be completed online. ESIC registration provides several benefits to both the employer and the employees, including medical, sickness, maternity, disability, and death benefits. Employers should ensure that they comply with the ESIC Act and register their employees to avail of these benefits.