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Employee State Insurance - ESIC Registration

The Employee State Insurance (ESI) is a social security and self-financing scheme which benefits the employees by providing them with various health benefits. ESI Scheme gives benefits to both employees and their families. The benefits provided by the ESI scheme include sickness benefit, disablement benefits, medical benefit, reimbursement of the funeral expenses, and several other benefits. However, to benefit from the ESI scheme's benefits, the employer who has the employees count of more than ten employees (in some states the prescribed limit is extended to twenty employees) who are earning a maximum salary of Rs 15,000 p.m., are required to obtain ESIC Registration.

The Employee State Insurance (ESI) Act of 1948 works as the governing law for the ESI scheme. Hence, the ESI scheme is governed and regulated by the provisions of the ESIC Act, 1948.The Employee State Insurance Corporation or ESIC is an autonomous body formulated by the Ministry of Labour and Employment. In India, all the activities concerning to ESI scheme are regulated by this independent body.

What is an ESI Scheme?

The term ESI Scheme refers to a social security scheme designed to provide social protection to the employees working in the organized sector. Social protection refers to protection provided against the uncertain events of maternity, sickness, disablement, and death due to any injury caused in the course of employment. This scheme also focuses on providing medical care facilities to both insured employees and their family members (dependents).

What is ESI Registration?

ESI Registration is mandatory for those employers who are having employee strength of more than ten employees and are earning a maximum salary of Rs 15000 p.m. By obtaining ESI Registration, the workers or the employees working are provided with several monetary, medical, and other benefits by the employer.

After getting the establishment registered under the ESIC Act, the employer is now required to contribute an amount equivalent to 04 percent of the total monthly salary paid to the employee. In contrast, each concerned employee is required to contribute only 01 percent of each month’s salary. However, the employees who are earning less than Rs 100 per day are exempted from making a contribution.

Who are all Eligible to obtain ESI Registration?

The entities which are required to obtain ESIC Registration are as follows:

  • Shops,
  • Hotels, or the Restaurants which are not having any manufacturing activity, but are engaged in providing service,
  • Cinemas,
  • Establishment engaged in Roadside Motor Transports,
  • Newspaper Establishments,
  • Private Medical or Educational Institutions,

Who is a Principal Employer as per the ESI Act?

A principal employer is usually the occupier or the owner of the factory to which the ESI Act applies. In the case of a Factory, either of the listed below can be considered as Principal Employer:

  • Occupier.
  • Owner.
  • Managing Agent of the Occupier or Owner.
  • Legal Representatives of the Deceased Occupier or Owner.
  • Factory Manager.
  • If the establishments belonging to the Government of India.

However, in the case of any government-owned department, the head of the said department will be considered as the Principal Employer. And, in all the other establishments, the person-in-charge of the Supervision and Control is called the Principal Employer.

Who is an Immediate Employer as per the ESI Act?

Immediate Employer can be either of those mentioned below:

  • One who executes or completes any work inside the factory of the Principal Employer,
  • One who executes or completes any work outside the premises supervised and managed by the principal employer,
  • One who provides the on-hire services of his employees to the principal employer of a factory or establishment,
  • A Contractor

Who is an Employee according to the ESI Act?

All employees working in an ESI registered unit, whose monthly incomes (excluding the bonus, overtime, and leave encashment) do not exceed the threshold of Rs 15,000 per month, are eligible for the benefits and privileges provided under the Scheme. However, the employees who earn daily average wages up to Rs 100 are exempted from the ESIC contribution.

The ones who are not considered as an employee are as follows:

  • An Apprentice,
  • Any employee who is earning a salary of more than Rs 15000,
  • Any member of the Indian Armed Forces.

What are the Minimum Requirements for obtaining ESIC Registration?

The listed below are the requirements that are to be fulfilled for obtaining ESIC Registration:

  • The employer must be employing more than ten employees in his establishments (for some states the prescribed limit is extended to twenty employees),
  • The employees must be earning a maximum salary of Rs 15000 per month,
  • The term “wages” includes Basic Pay, City Compensatory Allowance (CCA), Dearness Allowance (DA), and Payment of the Day of Rest, Overtime Wages, Attendance Bonus, House Rent Allowance (HRA), Incentive Allowance, Meal Allowance and Incentive Bonus.

What is the Monthly ESI Contribution?

With effect from 15.02.2020, the monthly ESI contribution is reduced. Earlier, the employer was supposed to contribute an amount equal to 4.75 percent of the employee’s salary. Whereas, the employee was required to contribute 1.75 percent of his salary.

However, the said limits are now reduced. The employee is now required to contribute 01 percent of the wages, rounded off to next higher rupee. In contrast, the employer is asked to contribute 04 percent of the wages payable to every employee, rounded off to next higher rupee.

What are the Benefits of ESI Registration?

The following listed are benefits of ESI Registration:

  • It provides comprehensive medical benefits.
  • It includes dependants.
  • ESI Registration can be used easily at different ESI hospitals and dispensaries.
  • Any payments made will be compensated or reimbursed.
  • It also takes into account the needs of the disabled.
  • It provides easy access to the medical care in ESI Dispensaries or Hospitals.
  • Sickness benefits are offered at the rate of 70 percent of the employee’s salary. The same is provided if the sickness continued for more than ninety-one days in a year.
  • Maternity benefits are given in the form of paid leaves.
  • Ninety percent of the total salary of the insured person is given to his dependents in case of his death during employment.
  • Funeral expenses are provided to the deceased’s family.
  • In the Permanent Disablement case, 90 percent of the insured’s monthly salary is offered as an insurance benefit.

What is an ESIC Code Number?

ESIC Code is a 17-digit unique identification number issued to every registered establishment. This code is generated either when the employer submits the required information on the ESIC Portal or on the receipt of a survey report from the Social Security Officer.

What are the Documents Required for ESIC Registration?

The documents needed for obtaining ESIC Registration are as follows:

  • Form 01: For Employer's Registration
  • List of a minimum ten or twenty employees along with their date of joining and Salary Rate
  • Memorandum of Association {MOA}
  • Article of Association {AOA} together with the Certificate of Incorporation or the Partnership Deed as applicable.
  • Copy of the PAN (Permanent Account Number) Card details of the business
  • A copy of the Bank Statements of the concerned business
  • GST (Goods and Service Tax) Registration
  • Copy of the Factory or the Shop and Establishment Registration
  • A copy of an LLP Agreement in the case of a Limited Liability Partnership
  • Declaration Form from each employee together with their two passport-sized photographs
  • PAN and Aadhar of employees
  • Nominee details of the insured person

What is the procedure followed for obtaining ESIC Registration?

The steps involved in the procedure for obtaining ESIC Registration are enumerated below:

  • Visit the Official Website: For applying ESIC registration, the applicant is required to visit the official ESIC website, i.e., esic.in
  • Login Credentials: The said applicant can sign up by making his own password and username. These login credentials can further be used for the purpose of filing return, or doing other similar nature activities.
  • Confirmation Mail: Now, in the next step, a confirmation mail will be sent to the applicant’s registered E-mail ID and also on the registered mobile number.
  • Enter the Login Details: Now, the applicant is required to login into his account by using the already provided username and password.
  • Fill in the Application Form: In the fifth step, the applicant is asked to complete all the necessary details of the application form. Moreover, it shall be taken into consideration that the columns marked with Asterisk (*) are to be filed compulsorily.
  • Payment of Fees: Once the application form is duly completed by the applicant, he or she is required to finally submit it by paying the prescribed fee. The fee prescribed is paid on online and the same act as an advance contribution for the coming six months
  • Issuance of the ESIC Code Number: In the last step, the authorities, after verifying all the details and the documents submitted, will issue a registration certificate to the applicant. The authority having the power to issue the certificate of registration is the Employee State Insurance Corporation. This registration certificate also contains the ESIC Code, which is17-digit Unique Identification Number.

    Steps For ESIC Registration: Click here

What are the Post-Registration Compliances under the ESI Act?

Once an establishment or a factory is registered under the provisions of the ESI Act, the said establishment is then required to comply with some of the mandatory guidelines prescribed by the Act:

  • Maintenance of an attendance register,
  • A complete register having the details of the wages paid to the workers,
  • Inspection book,
  • Monthly return and challan by the 15th of the following month,
  • Maintenance of a register having a record of the accidents took place on the premises.

Why should an Individual choose Swarit Advisors?

  • 20+ Years of Experience
  • Ranks high in offering ESIC (Employee State Insurance Corporation) Registration
  • 150+ Team of Lawyers
  • 9 Star Rating by our Clients
  • More Than 450 Registrations Delivered
  • 99 percent On-time Delivery
  • 500+ Cities Served

If any client has any query or wish to apply for the ESIC (Employee State Insurance Corporation) Registration, just fill the inquiry form. Our experts will call you back within 24 hrs.

Package Inclusions

  • Drafting of ESI application
  • Employer registration
  • ESIC Employee Registration
  • Documentation
  • ESI Establishment registration certificate
  • ESI consultation on phone

FAQs for ESIC Registration

To register an employee under the ESI scheme, the concerned employee must provide a filled form and photographs of his family member to the employer (registered under ESIC). After that, he will get an ESI (Employee State Insurance) card after registration.

A company employing more than ten employees (for some states, it is prescribed as 20 employees) who draws a maximum salary of Rs 15,000 is mandatorily required to get themselves registered with the ESIC.

Yes, every company employing strength of more than ten people is required to obtain ESI Registration.

The documents needed for obtaining ESI Registration are as follows:

  1. Form 01: For Employer's Registration
  2. List of a minimum ten or twenty employees along with their date of joining and Salary Rate.
  3. Memorandum of Association {MOA}.
  4. Article of Association {AOA} together with the Certificate of Incorporation or the Partnership Deed as applicable.
  5. Copy of the PAN (Permanent Account Number) Card details of the business.
  6. A copy of the Bank Statements of the concerned business.
  7. GST (Goods and Service Tax) Registration.
  8. Copy of the Factory or the Shop and Establishment Registration.
  9. A copy of an LLP Agreement in the case of a Limited Liability Partnership.
  10. Declaration Form from each employee together with their two passport-sized photographs.
  11. PAN and Aadhar of employees.
  12. Nominee details of the insured person.

All the employers registered under an autonomous body named “Employees’ State Insurance Corporation,” are needed to file their respective ESI returns twice a year. A few documents is needed along with the ESI return that includes Register of Employee Attendance, form 6: Register, Inspection Book, Register of Wages, Register of Accidents happened on the premises, etc.

An employee is required to acquire the ESIC Form-9 for claiming sickness, temporary disablement, or maternity benefit as stated by the ESIC (Employees' State Insurance Corporation), Ministry of Labour and Employment.

According to the ESIC Act, any employee is required to take the medical benefits only from the ESIC hospitals or dispensaries. However, in case of an emergency or the non-availability of the ESIC facility in any specific region, an employee can get the treatment done from the private hospital but prior approval from ESIC.

ESIC is a type of medical insurance for the employees who are working below a certain prescribed income level. ESI deduction is a premium. Employees can claim medical reimbursements in the form of cash or medical benefits in case of need. However, they are not qualified to withdraw money from there.

The benefits of ESI Registration are as follows:

  1. It provides comprehensive medical benefits.
  2. It includes dependants.
  3. ESI Registration can be used easily at different ESI hospitals and dispensaries.
  4. Any payments made will be compensated or reimbursed.
  5. It also takes into account the needs of the disabled.
  6. It provides easy access to the medical care in ESI Dispensaries or Hospitals.

Any ESIC (Employee State Insurance Corporation) Card is valid until the end of the corresponding ESIC benefit period. However, the eligibility criteria for various ESIC benefits rely on the ESIC contribution made in that period. Therefore, one can easily claim the benefit of ESI even after his resignation, provided that the benefit of ESIC is active for that period.

According to the ESI Act, the ESI benefits include cash, medical, disability, maternity, and dependent benefits to the insured persons. Moreover, the ESIC scheme offers medical benefits to both the employee and his dependent family, including parents.

The trainees are usually not paid a salary, but are paid stipend. However, if the trainee satisfies the conditions provided under Section 2(9) of the ESIC Act, the said person will naturally be known as ‘Employee’ and will be covered under ESIC.

The ESIC Act applies to all factories. And, the same can be made relevant to shops as well. The term ‘Factory’ means any premises or establishment where a manufacturing process is being carried out. Also, the number of persons employed in the said premises is at least ten.

With effect from 1-1-2017, the employees getting wages up to Rs.15, 000 per month are currently covered under the ambit of the ESIC scheme.

The employee’s contribution is 0.1 percent of the wages, rounded off to next higher rupee. In contrast, the employer’s contribution is 0.4 percent of the wages payable to every employee, rounded off to next higher rupee. The term “wages” includes Basic Pay, City Compensatory Allowance (CCA), Dearness Allowance (DA), payment of the day of rest, overtime wages, Attendance Bonus, House Rent Allowance (HRA), Incentive Allowance, Meal Allowance and Incentive Bonus.

ESI gives a type of social security scheme for the employees working in the organized sector. Employers must contribute some percentage to the ESI fund by deducting the same from employee wages and merging it with the employee’s contribution.

All the details except the name and registration date can be rectified easily if wrongly mentioned earlier. However, the same is possible only after the submission of the relevant documentary evidence. For any change, the employees are required to approach the nearest branch of the ESIC. Moreover, the employee can also update his details by visiting the online Portal of ESIC.

ESIC Code is a 17-digit unique identification number issued to every registered establishment. This code is generated either when the employer submits the required information on the ESIC Portal or on the receipt of a survey report from the Social Security Officer.

Every employer registered under the ESI Act is required to comply with various compliances. These compliances include deposit of monthly contribution, to file the half-yearly return, and the report to ESIC authorities if in case there is some change in the business activity, ownership, address, and the maintenance of registers and records, etc.

The ESI Scheme is administered and regulated by a corporate body known as the ESIC (Employees' State Insurance Corporation), which has members representing Employees, Employers, the State Government, the Central Government, Medical Profession, and the Parliament. Further, the Director-General of ESIC is the Chief Executive Officer (CEO) of the ESI Corporation and is also an Ex-officio member of the ESI Corporation.

The ESI scheme acts as a self-financing scheme. The funds are usually built out of the employers' and employees' contributions and are payable monthly at a fixed percentage of wages paid.

All employees working in an ESI registered unit, whose monthly incomes (excluding the bonus, overtime, and leave encashment) do not exceed the threshold of Rs 15,000 per month, are eligible for the benefits and privileges provided under the Scheme. However, the employees who earn daily average wages up to Rs 100 are exempted from the ESIC contribution.

An employer shall apply for the registration in the Form- 01 within fifteen days after the ESI Act becomes applicable to the establishment.

Swarit Advisors provides ESI application services across India in all cities. We have completed ESI registration in Delhi, Mumbai, Gurgaon, Bangalore, Noida, Chennai, Ahmedabad, Hyderabad, Kolkata, Pune, Surat, Lucknow, Jaipur, Kanpur, Nagpur and other Indian cities.

  1. 20+ Years of Experience
  2. Ranks high in offering ESIC (Employee State Insurance Corporation) Registration
  3. 150+ Team of Lawyers
  4. 9 Star Rating by our Clients
  5. More Than 450Registrations Delivered
  6. 99 percent On-time Delivery
  7. 500+ Cities Served

If any client has any query or wishes to apply for the ESIC (Employee State Insurance Corporation) Registration, they just need to fill the inquiry form. Our experts will call you back within 24 hrs.

The reports required to be submitted by the employer are as follows:

  1. Accident Report in Form 12.
  2. Absence Verification Report

After obtaining ESI Registration, the employer can provide his employees with a Temporary Identity Certificate or card, by affixing Employee’s Photo and verifying it for the use. This certificate is valid for three months. This temporary identity certificate functions as an identity proof both for the purpose of claiming cash benefits at the ESI officer and also claiming medical benefit at the dispensary or hospital-affiliated under ESIC.

The parameter for medical benefit includes a complete medical treatment, i.e., from start to finish.

The benefits provided to the dependents are as follows:

  1. Dependents are also eligible to get full medical care as and when needed. Full medical care includes artificial appliances, artificial limbs, etc.
  2. Dependents are allowed to avail of medical benefits even when the employee is claiming the unemployment allowance. Even if the concerned employee dies during this period, his family still receives medical benefits till the completion of 12 months.
  3. Funeral Expenses of the deceased employee.
  4. In case of an insured employee's death due to any employment injury, dependents are eligible to benefit. Dependents include widow, children, and widowed mother.
  5. Any outstanding benefit to the insured employee at the time of his death is paid to the nominee.

In the case of a factory, the principal employer is either of the following listed:

  1. Owner
  2. Occupier
  3. Managing Agent of the Occupier or Owner
  4. Legal Representatives of the Deceased Occupier or Owner
  5. Factory Manager.
  6. If the establishments belonging to the Government of India

Immediate Employer can be either of those mentioned below:

  1. One who executes or completes any work inside the factory of the Principal Employer.
  2. One who executes or completes any work outside the premises supervised and managed by the principal employer.
  3. One who provide on hire the services to the principal employer of a factory or establishment.
  4. A Contractor.

Sickness benefit is provided for the period of absence. However, the same must be confirmed by the AMO (Authorised Medical Officer). Medical benefits are provided for a period not more than ninety-one days in two successive benefit periods @ 70 percent of the Standard Rate.

Disablement is a state resulting from an employment injury. This may make an employee incapable of doing his work for the time being. Moreover, the state of disablement either leads to a reduction in the employee’s earning capacity or it may completely deprive him or her from doing any work (known as the permanent total disability).

The injury caused to an employee either by accident or by an occupational disease arising in the course of his employment is known as the employment-related injury.

The term standard rate benefit denotes the calculation of the average wage by dividing the total wages paid throughout the contribution period by the total number of days for which these wages were paid.

The employer's contribution will be paid within a period of twenty-one days, starting from the last day of the month in which the contribution was due.

No, the overtime of an employee is not included in his wage calculation.

The minimum salary needed for availing of the benefits of ESIC is Rs.15000.

Yes, an employer who does not pay the prescribed contribution within the set time limit, will be liable to pay a simple interest @12 percent p.a. for each day of the said default or delay in the payment of contribution.

The ones who are not considered as an employee are as follows:

  1. An Apprentice.
  2. Any employee who is earning a salary of more than Rs 15000.
  3. Any member of the Indian Armed Forces

Yes, every employer who falls in the certain categories as described above is mandatorily required to obtain ESIC registration.

Employers need to apply for Form 01 within 15 days after the act applies to the establishment or the unit.

An ESI code is a 17 digit unique identification number allotted to all the registered establishments and units. The ESI code is generated through the ESIC portal after the required information is submitted by the employer. Besides, it can also be generated on receipt of a survey report from the Social Security Officer.

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