esic online payment

Employee State Insurance Corporation: Guide For New Employer

Central Govt Scheme
WhatsApp Group Join Now
Telegram Group Join Now
Instagram Group Join Now

All organized sector employees such as Government jobs, banks, registered industries/factories, govt schools & colleges can get Health Care Benefits through the government scheme. Employee State Insurance Corporation provides health insurance and medical benefit to such employees.

According to ESI ACT 1948, every employer must register themselves and their employees under the scheme in eligible criteria.

So that every employer must know about Employees’ state insurance corporation, Eligibility criteria, Benefits and how to register, etc.

What Is Employee State Insurance Corporation (ESIC)

Employee State Insurance Corporation (ESIC) is a corporation under the GoI that manages a special kind of social security scheme under an Act. And it is mandatory for all eligible employers to follow.

Basically, the ESIC provides and manages the social security scheme Employee State Insurance Scheme (ESIS) for all organized sector employees who earn less than 21,000 every month.

Therefore if you are an employer who is employing more than 10 employees with this limit of wages then they must register under ESIC and enroll their employee.

It is the same as EPFO or EPF.

The main difference between ESIC and EPFO is that ESIC provides health insurance and medical benefits while EPFO provides pension and retirement benefits.

In the ESIC scheme, both employer and employee contribute a percent of wages every month to the ESIC fund.

Overall, the Employee State Insurance Corporation manages the employer registration, enrollment, employee fund credit, debit process, employee unique id, ESIS hospitals, medical benefits, etc.

Also, it covers a wide range of benefits, including medical care, sickness benefits, maternity benefits, disablement benefits, and dependent benefits.

Eligibility List For ESIC Registration 2023

The ESIC scheme follows eligibility criteria for both Employers and Employees. Following is the eligibility list for ESIC Registration:

Employer Eligibility

  • Establishment Size: The company is employing at least 10.
  • Nature of Business: Factory, Industry, Institution, School, etc.
  • Wage Limit: Employee monthly wages limit to Rs 21000.
  • MSME Registered: Company must register under MSME.

Employee eligibility:

  • Employment status: The employee must be in an organized sector.
  • Monthly Wage: Employee is getting monthly wages less than Rs 21000.

How ESIC Can Benefit Your Employee

If you are registering your employee under the ESIS scheme then they can following benefits and can serve you better:

Medical Care: Employees can get free medical care such as OPD consultancy, inpatient hospitalization, diagnostic tests, medicines, and specialized treatments.

Cash Benefits: An employee can get cash benefits during the period of temporary unemployment due to injury or illness.

Maternity Benefits: Female employees get maternity benefits such as paid leave for certain days.

Family Member Benefits: Not only employees but also dependents and family members can also get free medical benefits.

Funeral Expenses: The ESIC also provide a lump sum amount of benefits for funeral expense.

How ESIC Can Benefit Company

These are the following benefits that a company can expect to get after registering in ESIC:

Compliance with Labour Law: When a company registers for an ESIC it ensures that they comply with the Labor Law and thus they are safe from legal penalties.

Reduced Financial Burden: The company does not need to provide additional Medical benefits because they are benefiting them through ESIC benefits.

Improved Employee Retention: You can make a loyal employee after registering in ESIC and providing health benefits to them.

Attraction Compensation Package: You can attract better employees.

Company Reputation: It can also enhance the company’s overall benefits.

State Wise Minimum Employee Registration List

Here is a list of states where companies have to register minimum employees for the ESI scheme:

State NameMinimum Employees to be registeredState NameMinimum Employees to be registered
Himachal Pradesh20Delhi10
Jammu & Kashmir20Karnataka10
Jharkhand10West Bengal10
Kerala10Andhra Pradesh10
Madhya Pradesh20Arunachal Pradesh20
Rajasthan10Daman and Diu20
Sikkim20Dadra and Nagar Haveli20
Tamilnadu20Andaman and Nicobar20
Uttar Pradesh20Outside India20

Document Required For ESI Registration

Documents Required for ESIC Registration:

  • Email ID
  • Registration Certificate under the Factories Act or Shops and Establishment Act.
  • Certificate of incorporation (Company Registration or Partnership deed).
  • GST certificate of the establishment.
  • Memorandum of Association and Articles of Association.
  • Address proof of the establishment (utility bills, rental agreement, or property tax receipts).
  • List of employees in the establishment.
  • PAN Card of the business establishment and employees.
  • Compensation details of all employees.
  • Canceled cheque from the company’s bank account.
  • List of directors and shareholders of the company.
  • Attendance register of employees.

How To Complete ESI Registration Online In 2023

You can complete the ESIC Registration within 5 steps which may take about 10 minutes to cover.

  • Step1: Create ESIC ID and Password
  • Step2: Login To ESI
  • Step3: Fill in the Employer Registration From 1
  • Step4: Payment for registration
  • Step5: Download the registration letter

ESIC registration is a time-taking process so you cannot understand it easily on the website. Here is a video guide that can help with it:

Step1: ESIC Sign Up: Create a User ID and Password

  • Firstly, go to the official website
  • On the homepage, you can see the “Employer Login” option.
  • Click on it.
  • You will jump on the ESI Login page.
  • But you have to click on Sign Up first to create an ID and Password
  • Here you have to provide the following information:
    • Company Name
    • Principle Employer Name
    • State
    • Region
    • Email (User ID)
    • Phone Number
  • Finally, click on Submit.
  • You will receive an email from the esic team. In this, you will get a Password.
  • No you have to Login.

Step2: ESIC Login

  • Go to the login page.
  • Enter your username and password.
  • Also captcha code and then click on Login.
  • You will get a confirmation link in your mail.
  • Confirm.
  • You will be login successfully and enter Dashboard.
  • Here you have to choose the New Employer Registration link. Click on it.

Step3: Employer Form 1 Fill & Submit

  • You have to fill out the Employer Registration Form 01 with different information and values. Also, you have to upload the required documents.
    • Type Of Business Unit
      • Factory
      • Shop Establishment
    • Name of unit
    • Address
    • Police Station
    • Nature of Business
    • PAN Details
    • License Details
    • Ownership Details
    • Eligible employee numbers and details
    • IP
  • Fill out the complete form, finally, click on Save & Submit, and then proceed to Payment.

Step4: ESI Registration Initial or Advance Contribution Payment

  • You have to 6-month advance contribution for the scheme. It is mandatory to get ESI Code.
  • Click on “Pay Initial Contribution”
  • You will get a Challan Number that you have to note down for future reference.
  • Select payment type and then Gateway.
  • Make payment.
  • You will receive ESI Code.
  • And Registration Letter.

Step5: ESI Registration Letter

Compliances After ESIC Registration

The ESIC Registration is not the final work, the employer also has to manage the ESIC. These are the compliances to complete every period of time:

  • Deduct Contributions: The company needs to deduct a portion of the employee’s wages for ESIC contributions. They should also contribute their share.
  • Pay Contributions: The company must deposit the deducted contributions, along with their own share, into the ESIC fund. This should be done monthly within the specified timeframe.
  • Maintain Records: The company should keep accurate records of employee information, ESIC registration details, wages, and contribution deductions.
  • Submit Reports: The company needs to provide necessary reports and documents to the ESIC as required, following the prescribed formats and timelines.
  • Follow ESIC Rules: The company must comply with all ESIC rules and regulations related to contributions, coverage, benefits, and any updates to the scheme.
  • Communicate with Employees: The company should effectively communicate ESIC benefits, procedures, and relevant information to employees.
  • Renewal: The company should renew its ESIC registration and related certifications on time to maintain coverage.

By following these steps, the company ensures compliance with ESIC regulations and provides employees with access to ESIC benefits and social security.

FAQs Employee State Insurance Corporation

Is it mandatory for a company to register in ESIC?

Yes. Under ESIC Act 1948, every company that has more than 10 employees with a monthly wage limit of up to 21000 must register under ESIC to provide social security benefits.

Can employees register themselves in ESI Scheme?

No. Employees cannot register themselves under ESI Scheme. It employer’s responsibility to register in the scheme and enroll the employee and manage the contribution.

What are the employer and employee contributions to ESI Fund?

>Employer: 3.25% of employees’ wage
>Employee:0.75% of his wage

Leave a Reply

Your email address will not be published. Required fields are marked *