REGISTRATIONS

Employees' State Insurance Corporation (ESIC) Registration - An Overview

ESIC (Employees’ State Insurance Corporation) is an Indian social security institution that provides monetary and medical benefits to workers in the countries organised sector. Employers or enterprises are required by law to register their business under the ESIC within 15 days of the date of its applicability to them. ESIC Registration is the process of identifying and registering every employer and their employees with the plan. Well look at ESIC Registration and how it affects employers in this article.

PROCESS

Earlier, there was manual registration. Now, the ESIC registration is completely
online. Following are the steps involved in ESIC Registration:
Step 1: Log in to ESIC Portal

An employer needs to get himself registered on the ESIC portal.
An employer can register on the ESIC portal by clicking on the ‘Employer Login’ option on the home screen.
On the next page, click on the ‘Sign Up’ button.
After clicking on the ‘Sign up’ button, the employers need to fill in the details and submit the form.

Step 2: Confirmation Mail

After submitting the form for sign up to the portal, the employer will receive a confirmation mail sent to the registered mail id and mobile number entered at the time of sign up.
The email will contain the username and password details for registering as an employer and employee under the ESIC scheme.

Step 3: Employer Registration Form-1

Next, log in to the ESIC portal by clicking on the ‘Employer Login’
option on the home screen and entering the username and password received in the email. This will redirect to the page having the option of
‘New Employer Registration’.
Click on the ‘New Employer Registration’ option.
Next, select the ‘Type of Unit’ from the drop-down list and click on the ‘Submit’ button.
The ‘Employer Registration – Form 1’ will appear and the employer needs to fill in the details.
On the Employer Registration Form-1 (ESI Registration Form), the employer needs to enter the details pertaining to the unit of the employer, employer details, factory/establishment details and employee details. Once, the complete form is filled by the employer, he/she needs to click on the ‘Submit’ button.

Step 4: Payment for Registration

After submission of the ESI Registration Form, i.e. Form-1, the ‘Payment of Advance Contribution’ page will open where the employer needs to fill
the amount to be paid and select the payment mode.
The employer will need to pay the advance contribution for 6 months.

Step 5: Registration Letter

On the successful payment of six months advance contribution, the
system generated Registration Letter (C-11) is sent to the employer which
will contain a 17 digit Registration Number by the ESIC department.
The Registration Letter (C-11) is a valid proof of registration of the employer.

Documents Required for ESIC Registration

Since the procedure for registration is online, no physical documents are required to be submitted. The documents required while filling the online registration form are:

Registration Certificate obtained under the Factories Act or Shops and Establishment Acts.
Certificate of Registration in case of a company, and partnership deed in case of a partnership firm.
Memorandum of Association and Articles of Association of the company.
Address proof of the establishment, such as the utility bills or rental agreement.
A list of all the employees working in the establishment.
PAN Card of the business establishment as well as all the employees working in the establishment.
The compensation details of all the employees.
A cancelled cheque of the bank account of the company.
List of directors of the company.
List of the shareholders of the company.
A register containing the attendance of the employees.

Benefits of ESIC Registration

Employees registered with the ESI can avail of a range of medical and sickness benefits under the scheme. The following six are the major areas of benefits provided under the ESIC Scheme:

Medical Benefit: Employees and their family members are entitled to complete medical coverage as soon as they register with ESIC. There is no limit on how much an insured person or a family member can spend on treatment. On payment of a nominal annual premium of Rs.120/-, it also provides medical treatment to retired and permanently disabled covered persons and their spouses.

Sickness Benefit: Employees enrolled in the ESIC programme are entitled to a sick benefit of 70% of their salaries during periods of certified sickness lasting up to 91 days per year. To be eligible for illness benefits, an ESIC employee must contribute for 78 days over the course of a 6-month period. Certain employees who meet certain conditions are also eligible for enhanced and extended sickness benefits under the scheme.

Maternity Benefit: Maternity benefit for confinement/pregnancy is paid for three months, with a one-month extension on medical advice, at the full wage rate, subject to contribution for 70 days in the previous year.

Disablement Benefit: Employees who are covered by ESIC are entitled to a 90 percent wage replacement payment as long as their disability lasts. Permanent disablement benefit (PDB) is paid in the form of a monthly payment at a rate of 90% of wages, based on the level of loss of earning capacity as determined by a Medical Board.

Dependents’ Benefit: In circumstances where death occurs due to employment accident or occupational hazards, dependents benefits are paid at a rate of 90% of salaries in the form of a monthly payment to the dependants of a deceased individual covered under the ESIC plan.

Other Benefits: Employees enrolled in the ESIC scheme are also eligible for other benefits such as funeral expenses compensation, vocational rehabilitation, physical rehabilitation, old-age medical care, and so on, in addition to the foregoing comprehensive medical, sickness, maternity, and disablement benefits. Given the aforesaid benefits for employees and the statutory requirement for employers to be registered under the programme, it is strongly suggested that all firms that are required to obtain ESIC Registration do so as soon as possible.

FAQs

Is it mandatory for employers to register under the ESI?

All employers who are covered by the ESI Act are required to register with the ESI system. The ESI Act covers factories or companies with more than 10 employees (in some states, 20 employees) and a monthly pay of Rs. 21,000/- or more. They must register with the ESIC within 15 days of the organisation becoming subject to the ESI Act.

What is the penalty for not paying the contribution from the salary of an employee on time?

When an employer who is registered with the ESIC fails to pay the required contribution to an employee ESIC, the employer will be liable to pay simple interest at the rate of 12% per year for each day the contribution is late or not paid.

Can a factory or establishment covered under the ESI Act go out of coverage if the number of persons employed goes below the minimum limit prescribed?

When a plant or facility is covered by the Act, it remains covered even if the number of people or employees falls below the required limit at any point or the industrial activity changes.

How to check ESI registration of an employee online?

With the insurance number supplied to the employee at the time of ESIC registration, an employee of a factory or company registered with the ESIC can verify their ESI registration details. The employee must go to the ESIC website and enter the user number and captcha code after clicking the Insured Person Login option. The employees insurance number is the user number.

What is the ESI Code number?

The ESI code number is a unique 17-digit identification number assigned to each employee of an ESIC-registered factory or facility. After the employer has entered their employees details into the ESIC site, a 17-digit number is generated.

Who is eligible for MSME?

The business must fall within the government's investment or turnover restrictions in order to be eligible for MSME registration. It makes no difference if you're an LLP, a one-person firm, or a Hindu joint family.

Is it mandatory to register under MSME?

No, MSME registration is not obligatory. However, it is recommended that you register because it provides you with a number of advantages that you would not otherwise have.

What is the validity period of the MSME certificate?

MSME certificates are valid for as long as the business is open and operating. If you acquire a provisional certificate, on the other hand, it is only valid for 5 years

How does SSI/MSME registration help me get a loan from a bank?

MSMEs/SSIs are recognised by all financial institutions, including the major banks, who have designed special programmes for them. MSMEs and SSIs are designated as priority sector borrowers and are eligible for lower-interest loans from a restricted group of banks.

What if I don’t start my business within 5 years of getting provisional registration?

You must reapply for provisional registration if you have not started your business within 5 years after receiving provisional registration. If you start your business within those five years, however, you can seek for permanent registration.

Is an Aadhaar card mandatory for MSME registration?

Yes, an Aadhaar card is mandatory for MSME registration.

Within how many days I can get the MSME certificate?

You can get your MSME certificate within 5-7 days.

Is the process completely online?

Yes, the process is 100% online.

What is the difference between Udyog Aadhar and MSME?

The registrations for Udyog Aadhar, SSI, and MSME are all the same. They're now referred to as udyam registration.

Can we edit Udyog Aadhar?

Yes, it is possible to edit udyog Aadhaar.