ESIC REGISTRATION

ESIC (Employees’ State Insurance Corporation) registration is a mandatory process for employers to provide social security and health insurance benefits to their employees. It is governed by the Employees’ State Insurance Act, 1948. Here are the key points about ESIC registration:

Eligibility Criteria for ESIC Registration

An organization having 10 or more workers/ employees are mandatorily required to register for ESI Scheme and give ESI benefit to the employees.
However, an organization with less than 10 worker’s/ employees can voluntarily obtain EPF registration.
A salaried employee earning do not exceed INR 21,000 (INR 25,000 in the case of a person with a disability) is also mandatorily required to obtain ESI registration.

Features of ESI Scheme

Complete medical care and attention are provided by the scheme to the employees registered under the ESI Act, 1948 at the time of his incapacity, restoration of his health and working capacity.
During absenteeism from work due to illness, maternity or factories accidents which result in loss of wages complete financial assistance is provided to the employees to compensate for the wage loss.
The scheme provides medical care to family members also. As of 31 March 2022, the total number of beneficiaries covered under this scheme is 12.04 crore.
Broadly, the benefits under this scheme are categorized under two categories:

- Cash benefits (which includes sickness, maternity, disablement – temporary and permanent, funeral expenses, rehabilitation allowance, vocational rehabilitation and medical bonus) and,
- Non-cash benefits through medical care.

The scheme is self-financing and being contributory in nature. The funds under the ESI scheme are primarily built out of the contribution from the employees and employers payable monthly at a fixed percentage of wages paid.
Currently, the employee contribution rateis 0.75% of the wages and that of employers is 3.25% of the wages paid.
The employer makes the contribution from his own share in favour of those employees whose daily average wage is Rs 137 as these employees are exempted from his own contribution.
The employer is required to pay his contribution and deduct employees’ contribution from wages and deposit the same with ESIC within 15 days from the last day of the calendar month in which the contribution falls due. The payment can either be done online or through designated and authorized public sector banks.

Benefits for the firm

The cost of expenditure is reduced to 9 thousand crores every year to the industry. The number of workers hired will also be increased as the saving is increased. The compliance of law is also improved to favour the employers.

Effects for the employee

The cost to company package is reduced with no changes in disposal income. ESIC corpus shows a reduction in preventing better insurance scheme benefits. Finally, Thus, we provide the best service to favour the company in all aspects and ensure the employees benefit to the fullest extent. Not all the employee is affected but, try to provide every other worker a better sum out of ESI Beneficiary.

Both the positives and negatives are indicated clearly explained to the employee and the firm. The procedural steps are explained in a better manner by our excellence. We, at kanakkupillai focus on mutual understanding between employer and partner.

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