Know More About ESIC

ESIC stands for Employee State Insurance Corporation is an autonomous body created by law and is under the control of the Ministry of Labour and Employment, Government of India. It regulates the ESI scheme as per ESI Act of 1948. ESI scheme is set to cater the health and insurance needs of the employees and is funded by the employees and the employer.

ABC Out Source will help you with the hassle free registration process of ESIC and in completing further compliances within time to avoid penal consequences.

Eligibility Criteria for ESIC Scheme

  • All organisations listed under Factories Act and Shops and Establishments Act.
  • Factories and establishments with 10 or more employees have to register themselves under ESI schemes.
  • Employees earning wages not exceeding INR 21000/- per month will be covered to check requirements of ESIC registration.

  • Benefits of ESIC Scheme

    ESIC Scheme ensures Various benefits to registered employees and their dependents. List of benefits is as follows:

    Medical benefits: Reasonable medical care, comprehensive medical care & clinical investigation for insured people and his family members.

    Medical Care: Medical facility within ESI Medical institutions to insured person and his spouse.

    Disability benefits: Payment is made to the employee as long as disability continues.

    Dependent Benefits: Amount is paid to the dependents of the Insured person who dies as a result of employment injury.

    Maternity benefits: Paid maternity leaves are given for 26 weeks. 6 Weeks are given in case of miscarriage.

    Funeral benefits: One time payment made for the funeral of an insured person.

    Unemployment Allowance under Rajiv Gandhi Sharmik Kalyan Yojna’(RGSKY).

    Vocational Rehabilitation Allowance.

  • When the certified sickness of employee lasting for a maximum of 91 days in any year then sickness benefits in form of salary at the rate of 70%.
  • An array of medical benefits and facilities to the employee and his/her family.
  • Maternity benefit to pregnant woman employees in form of paid leaves for three months.
  • In the case of death of the employee caused by an occupational hazard then ESIC is liable to pay 90% of his/her salary to the dependents every month.
  • When the employee is disabled to do work then 90% of the monthly salary will be paid.
  • Other benefits like funeral expenses compensation, physical rehabilitation, vocational rehabilitation, old age medical facility will be given to the concerned employee.

  • Documents required for the registration

    Following is the list of document required for registration under ESIC scheme:-

    1. Details of Establishment:

  • Copy of PAN Card.
  • Complete postal address of the factory/Establishment alongwith address proof.
  • Details of police station.
  • Nature of ownership of premises, i.e., owned or rented.
  • 2. Details of all bank accounts.

    3. Nature of business.

    4. Registration details and certificate obtained either under Factories Act and Shops and Establishment Act.

    5. Date of commencement of factory.

    6. Constitution of business.

    7. Name, age, Designation, father’s name and address proof of all directors/owner of the establishment.

    8. Details of number of employees.

  • Number of employees covered under scheme.
  • Bifurcation of employees in Male, female, transgender.
  • Bifurcation of employees drawing wages of less than INR 21000 per month in Male, female, transgender.
  • Date when number of employees reached 10 or 20.

  • 9. Details of employees.

  • Name.
  • Father’s name.
  • Address.
  • Date of Birth.
  • Gender.
  • Marital Status.
  • Permanent Address.
  • Date of Joining.
  • Nominee details.
  • Family Details.
  • Email id and mobile number.
  • Details of bank account.
  • Copy of PAN And aadhar card.
  • A cancelled cheque of the Bank Account of the Company.

  • How do we help

    At VJM & associates LLP our skilled professionals regularly watch for any amendments in the ESIC and EPF acts and accordingly guide our client base that necessary course of action is required to be taken. Our skilled professionals help you with the following:-

  • We help in step by step assistance in the registration process of EPF and ESIC.
  • We notify recent amendments and update the EPF and ESIC fund promptly.
  • We provide professional help in solving your query.
  • We manage the work required after registration.
  • We assist in filing ESI and EPF returns in time.
  • Timely update the PF and ESIC accounts within due dates. Delay in payment of EPF or ESIC contribution may result in interest and penalty.

  • How VJM & Associates LLP can help in ESIC compliances

    At VJM associates LLP, we help you with:

  • Obtaining registration under EPF/ESIC Act.
  • Adding, deleting or modifying records of Employees on regular basis.
  • Computation of ESIC and EPF liability and ensuring that the same is deposited within due date.
  • Filing returns under EPF and ESIC.

  • Compliances After ESIC Registration

    The establishment needs to comply with the following after registering under the ESIC:

  • Maintaining the attendance register.
  • Maintaining a complete register of wages for workers.
  • Inspection book.
  • Monthly return and challan within 15th of the succeeding month.
  • Maintaining a register that records any accidents that happened on the premises.

  • Returns To Be Filed After ESIC Registration

    After the registration under the ESIC, the employers have to file ESI Returns half-yearly. The following documents are required for the filing of the returns:

  • Register of attendance of the employees.
  • Form 6 – Register.
  • Register of wages.
  • Register of any accidents which have happened on the premises of the business.
  • Monthly returns and challans.

  • Frequently Asked Questions

    Yes. All the employers who are covered under the ESI Act have to mandatory register themselves under the ESI scheme. The factories or establishments having more than 10 employees (in some states it is 20 employees) with a maximum salary of Rs. 21,000/- per month are covered under the ESI Act. They must register with the ESIC within 15 days from the time the organisation is covered under the ESI Act.

    When an employer registered under the ESIC fails to pay the prescribed contribution towards the ESIC of an employee, the employer will be liable to pay simple interest at the rate of 12% per annum in respect of each day of delay or default in payment of contribution.

    Once a factory or establishment is covered under the Act, it continues to be covered even when the number of persons or employees at any time falls below the required limit or there is a change in the manufacturing activity.

    The ESI code number is a unique 17-digit identification number allotted to every employee of a factory or establishment registered with the ESIC. The 17 digit number is generated using the ESIC portal after the employer has submitted their employee’s information.

    ESI registration applies to all factories or entities that employ 10 or more persons who have a maximum salary of Rs. 21,000. However, in some states, it is 20 employees.