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Employee State Insurance (ESI) Registration

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ESI stands for Employee State Insurance managed by the Employee State Insurance Corporation (ESIC) which is an autonomous body created by the law under the Ministry of Labour and Employment, Government of India.

The ESI scheme was started for Indian workers. The workers are provided with a huge variety of medical, monetary and other benefits under the ESI Act from the contributions made by both the employer and employee towards the ESI scheme.

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ESIC Registration Eligibility

Any non-seasonal factory or establishment having more than 10 employees (in some states it is 20 employees) who have a maximum salary of Rs. 21,000/- has to mandatorily register itself with the ESIC within 15 days from the date of its applicability.

Under this scheme, the employer needs to contribute an amount of 3.25% of the total monthly salary payable to the employee whereas the employee needs to contribute only 0.75% of his monthly salary every month of the year. The only exemption to the employee in paying his contribution is whose salary is less than Rs. 176/- per day.

Entities Covered Under ESIC

As per the government notification, under Section 1(5) of the ESI Act the following entities are covered:

Shops.

Restaurants or hotels engaged only in sales.

Cinemas.

Road motor transport establishments.

Newspaper establishments (which is not covered under the Factory Act).

Private medical institutions.

Private educational institutions.

When the above-mentioned establishments employ 10 or more persons, the owner/employer of the establishment must compulsorily register it with the ESIC.

ESIC Registration Process Online

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

ESI Registration

Step 1:Login to ESIC Portal

Step 2:Confirmation Mail

Step 3:Employer Registration FORM-1

Step 4:Payment for Registration

Step 5:Registraton Letter

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 either under the:

Factories Act, or

Shops and Establishment Act.

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

The benefits of registering under this scheme are varied. Some of them are:

Sickness benefits at the rate of 70% (in the form of salary), in case of any certified illness and which lasts for a maximum of 91 days in any year.

Medical benefits to an employee and his family members.

Maternity benefit to the women who are pregnant (paid leaves).

If the death of the employee happens while on work – 90% of the salary is given to his dependents in the form of a monthly payment after the death of the employee.

Same as above in case of disability of the employee.

Funeral expenses.

Old age medical care expenses.

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:

Form 6 – Register.

Monthly returns and challans.