ESI Registration

ESI Registration is managed by the employee’s state insurance corporation (ESIC) formed by the Ministry of labour and employment, Government of India. It looks forward to the workers and their families in unfortunate conditions.

The registration provided on Shram Suvidha website involves facilities of medical and other monetary benefits given to the employees.

These types of services help in upgrading the morale, health, well-being, retention and performance of the employees. Hence, it is the responsibility of companies or organizations to provide such services.

Companies or businesses having 10 or more 10 employees should register under ESI. The benefits provided are divided into two types: cash benefits and non-cash benefits.

Process of ESI Registration

The following are the steps procedure for ESIC registration online:

Step 1 : Visit the official ESIC portal

Step 2 : Select the ESIC registration login button

Step 3 : Select the Sign-up option

Step 4 : After the Sign-up option, Fill in the given details:

• Name of the company
• Employer’s name by employer
• State and regions
• Email address
• Mobile number

Step 5 : Click on the check box, then submit to proceed

Step 6 : Email is received with username and password

Step 7 : Click on the option ‘New employer registration

Step 8 : Select the option of ‘Type of unit’ from the list and submit to proceed.

Step 9 : Fill out the ESIC Registration Form 1 for ESI Registration with the details of a unit like its name, address with state, phone number, e-mail ID, police station and the details of owned or hired office.

Step 10 :Details of the employer including bank account details and PAN number

Step 11 :Date of incorporation of organization, license issued, power connection details, ownership details,

Step 12 :Type of business, employee declaration form and submit

Step 13 :Payment of advance to employees whether the online or offline mode of payment

Step 14 : C-11 - Letter of registration

This is a computer generated letter that does not have signatures.

Form 1 - Employer Registration

The following details are submitted in the ESI Registration form:

• Name of the establishment
• Address of the establishment
• Police station
• Town, tehsil, municipality
• Premises of establishment whether owned or rented
• In the case of rented premises. Give the following:
• ESIC registration number
• Date of closing for the previous establishment
• Terms and conditions where the premises are rented namely the rent agreement
• Click on Proceed
• Bank account details
• The income Tax number is given by PAN card
• Category of work
• In case of activity is declared as a ‘hazardous process according to Factories Act, 1948

Documents Required for ESIC Registration

The ESIC registration documents for completing the registration are:

• Certificate of Registration given by Factories Act or Shops and establishment act for ESI Registration
• In the case of a Public/Private company – Certificate of Incorporation is required
• In the case of a partnership firm – Partnership Firm Deed
• Memorandum and Articles of Association
• Address proof of organization like rent agreement or electricity bills
• PAN card of the organization
• Cancelled cheque
• Shareholder’s list of organization
• PAN card of directors or partners and employees with their DSC
• List of working employees in the organization
• Attendance sheet of employees

Eligibility for ESIC Registration

An organization shall be eligible for gaining the benefits by ESIC employees state insurance corporation applies to:

• Any person working in full-time employment for ESI Registration with more than 10 employees
• Working in Restaurants, newspapers, transport businesses, cinemas, tuitions or coaching, and hospitals, in the strength of more than 20 employees.
• The wage of an employee is Rs. 21000 a month and when disabled, the wage increases to Rs. 25000 a month.
• The employer contributes 3.25% of the full monthly salary and the employee contribution is 0.75% of monthly wages. The employees having wages less than Rs. 176 have been given an exemption from contribution.

List of Organizations under ESIC

Registration under ESI is necessary for exceeding 10 employees as per the relevant provisions of the ESI Act. The given entities are required to have ESI registration:

• Shops
• Cinemas
• Restaurants or hotels in sales
• Road transport establishments
• Newspaper factories not covered under Factory Act
• An academic institution like medical or private.

The ESI Act has around twelve lakh factories and establishments with benefits of more than three crore employees which are benefited by the scheme.

Application for ESI Card

The ESI card is also known as the Pehchan card which facilitates identification for getting benefits under the ESIC scheme. This includes name, father’s name, address and unique ESI insurance number. The process of downloading the ESI card is given in the following steps:

Step 1 : Visit the ESIC login with help of the username and password given by ESI Registration

Step 2 : Under the Employee menu, click on ‘E-Pehchan card’.

Step 3 : Select the establishment and click on the view button

Step 4 : View details of working employees by filing the employee’s insurance number and name

Step 5 : Select the ‘view counter foil’ for the employee.

Step 6 : Click on ‘print’ on the New page and download it as a PDF doc against the ESIC card application.

Step 7 : The employee must have a signature and family member photo affixed there. Make sure that the photo is attested and stamped by the employer.

Step 8 : Obtain the signature or stamp of the employer on the E-Pehchan card.

Checking Online Claim Status of ESI Registration

The following steps are given for checking the online status:

• Visit the Umang Application on your android phone
• Enter the IP number or ESIC insurance number then click for getting the OTP
• Enter the OTP obtained and then click on submit button
• Select the ‘Claim status’ under services
• In case, the claims are raised then the status will be shown.

Compliances of ESIC Registration

The factory or organization is required to follow the timely compliances as given by the ESIC:

• Updating the attendance register
• Updating a register of wages/ salary for employees/workers
• Book of Inspection
• Return on a monthly basis and challan in 15th of next month
• Updating a record of accidents (if any) held on the premises.

Benefits of ESI Registration

The benefits of registration under an employee state insurance corporation are given below:

• It provides medical services to the family members of employees and employees by bearing the medical costs.
• The expenses related to any disability whether permanent or temporary caused by an injury.
• The employees are allowed to claim 70 percent of their salary for certified illness for a period of 91 days of sick leaves.
• At the time of maternity – For twenty-six days from labour time can take 100 percent of the salary
• A monthly cash allowance for not more than 24 months for permanent invalidity like unemployment.
• The family members can take 90% of the salary monthly for ESI Registration in case of the death of the employee
• The provision of Rs. 15000 for funeral expenses to family members.
• There are other benefits like medical care, rehabilitation or training, etc.

Penalties for Late Payment or Non-Payment

According to the ESI Act, the company can recover the damages that occurred for delayed payments with the following rates not exceeding the amount of contribution:

• For a Period of less than two months – The rate of damage is 5 percent p.a.
• For a period of two to four months - The rate of damage is 10 percent p.a.
• For a period of four to six months - The rate of damage is 15 percent p.a.
• For ESI Registration, Period of six months and more - The rate of damage is 25 percent p.a. In case of repeated actions, the employer is liable for punishment for the same.