Everything About ESIC Registration, Benefits & Return | UBS
UBS

Everything You Need To Know About ESIC Registration, Benefits & Return

January 12, 2023
Payroll
ESIC - Employees State Insurance Corporation

ESIC is an abbreviation of Employee’s State Insurance Corporation.

Many people don’t know about the exact procedure of ESIC registration, benefits, and penalty. This blog focuses on ESIC registration fees, and the ESIC registration process, if you don’t have an answer to these questions then it’s the right place to get the right one.

  • How to apply ESIC?
  • What is ESIC and its benefits?
  • Who is eligible for ESIC registration?
  • How can I apply for ESIC 2022?
  • How much salary is applicable for ESI?
  • What is the process of an ESIC claim?
  • What is ESIC and how it works?

So, this is a basic term and every state provides Employee State Insurance (ESI) registration to employees and their families in order to provide some level of security. An Employee State Insurance Corporation a body governed by the ESI Act 1948 provides this registration.

ESI was the first significant Act on employee social security which was established on some principles. So first of all know some fundamentals regarding ESIC.

PF ESIC and other statutory compliance

What Is ESIC?

Employee State Insurance (ESI) is administered by an autonomous organization ESIC- Employee State Insurance Corporation in Ministry of Labor and Employment of the Government of India. ESI Act is entitled to give major benefits like monetary, medical and etc to employees.  Employees and employers both have to contribute to the ESI program. 

Who Is Eligible For ESIC Registration?

Any company with more than 10 employees (in some states, 20 employees) earning between 15,000 to 21,000 Rs. has to register itself with the ESIC within 15 days of its application date.

In this case, the employer has to contribute 4.75% of the entire monthly salary payable to the employee, whereas the employee has to contribute 1.75% of his monthly salary every month under this act. Only Employees who are earning less than 137 Rs. per day are excused from paying their contribution.

Top 7 HR Metrics that Startups and Small Businesses Must Track

Rate of Contribution

Employer Contribution Employee Contribution Total
4.75 % of the salary 1.75 % of the salary 6.50% of the salary
Contribution For The First 2 Years In Some Implemented Areas
3% 1% 4%
Contribution Period Benefit Period
October- March July- December
April- September January- June

Which Entities Are Covered Under ESIC?

  • Cinemas
  • Shops
  • Private Educational Institution
  • Road Motor Transport Establishment
  • Restaurants Or Hotels In Sale
  • Newspaper Establishment ( Not Under Factory Act)

What Are Essential Documents Needed For ESIC Registration?

Here is the list of essential documents submitted by the employer for ESIC Registration which you can find here only.

  • Registration Certificate Under Other Acts Like 1. Factories Act, 2. Shop And Establishment Act
  • MOM And AOA Of The Company
  • Registration Certificate For Partnership
  • Employees Compensation Information
  • Employees List
  • Company’s Directors & Shareholders
  • A Cancelled Cheque Of the Company’s Account
  • Employees’ PAN Card And PAN Card Of The Business Entity
  • Employees Attendance Register

After collecting these documents consider this process:

  • Form 1 shall be downloaded and filled.
  • It must be filled with the help of these documents and submitted on the ESIC portal.

12 Employee Engagement Trends for Upcoming Years

Benefits Of Registering Under the ESI Scheme

Under ESIC rule, a person who enrolls in ESI gets insurable employment. This means he or she will get full medical care for him and his family members as well.

Also, sickness benefits are given in the form of cash to ESI that has taken a person at the time of sickness which results in absence at work. However, the insured person has to submit a medical certificate certified by an “Insurance Medical Officer” at the time of sickness.

To take these benefits, you need to consider these conditions,

  • Employment shall be continuous for a minimum of 2 years.
  • In 2 benefits period minimum, it shall be entitled to sickness benefits.
  • A minimum of 156 days of contribution has to be paid during the immediate 4 CP.
  •  In case of emergency, the employee can be taken to any related hospital and referral formality can be carried out later.
  • Need to take a referral letter from the Medical Superintendent of ESIS hospital, and then treatment can be cashless.

How To Apply For ESIC Registration?

Here is the process of ESIC registration,

  • Create Account

For ESIC registration, employers must have an account on the ESIC Portal.

Just click on the “Sign Up” button and consider “Employer Login” on the home screen. Press the button and make the account.

  • Login

The employer will receive an email confirmation on the email address. Confirm email and mobile number during registration. Now, the employee or employer needs to add login information included in the email to do login.

  • Employee Form-1 Registration

After login in by adding a username and password from the email, you will redirect to the next page. It will change to “New Job”, select ‘New employer registration’ from the drop down menu.  Fill in the all details; choose ‘Unit Form’ from the drop-down menu and then press the ‘Submit’ button.

Check the ‘Register of Employers’ form, and fill in the details. It has both employer and employee details. Finish the registration by clicking on the ‘Submit’ button.

  • Pay Fees of ESIC Registration

After submitting the Form-1, the employer will be directed to the ‘Payment of Advance Contribution’ tab. At their employers, they must input the amount to be paid and select the payment mechanism.

  • Get The Registration Letter

The employer gets the system-generated Registration Letter (C-11) with a 17-digit Registration Number after the employer successfully pays the six-month advance contribution.

Top 10 Most Common HR Software Myths Demystified

Why is ESIC Registration Important?

The ESI registration scheme was established to provide social security and it is good to do financial help to employees who actually need it. It helps employees and their families from financial hardships by covering unforeseeable occurrences related to their and their family’s health.

UBS can help every employer by giving a major benefit – automated statutory compliance. Now, you don’t need to consider all these details as an employer or HR, the UBS payroll system can handle all this easily.

Check here, to know more!

Get knowledge of every HR terms

Alpesh Vaghasiya

Alpesh Vaghasiya

Any Query? Reach Out To Us.

We are here to help you find a solution that suits your business need.

Watch a Demo

Get a visual representation of how we work!

Schedule Demo
Get in Touch

Our sales expert is just one call away to meet your needs.

Get In Touch
Start Chat

Have a question?
Chat with Us

Start Chat

Struggling with accurate and timely employee payroll?

Ensure 0% manual payroll errors with UBS.

HR Toolkit

Interested in automated payroll? A free product demo is just a click away!!