Employees intending to apply for ESIC registration must know that they need to contribute 1.75% of their monthly income every month of the year. However, the employer is supposed to pay 4.75% of the total monthly salary payable to the employee.
But before you apply for ESIC registration, it’s significant to understand what it is and why do need it. Therefore, in this blog, the topics that we have covered are as follows:
- What is ESIC Registration?
- Why do you need ESIC registration?
- Documents required for ESIC registration
- Steps for registration
What is ESIC registration?
ESIC registration is a scheme and the process of registering oneself under the Ministry of Labour and Employment, Government of India, under which the workers get a huge variety of medical, monetary, and other benefits by the employer.
ESIC registration is obligatory for every company having more than 10 employees who have a maximum salary of Rs. 15,000. However, the number of employees differs in some states that are instead of 10, companies in particular states should have 20 employees to be eligible for ESIC registration.
If you’re looking for any consultant with reasonable registration fees for ESIC registration, then you must once give a chance to Enterslice.
Why do you need ESIC registration?
There are several benefits of ESIC registration that workers or labors can avail through it. Some of them are stated below:
- Sickness benefits at the rate of 70% if there’s any certified illness or it lasts for a maximum of 91 days in any year;
- Several medical benefits to the employee and his/her family members;
- If a woman is pregnant, she can avail maternity benefit (paid leaves);
- If the employee dies at the workplace, then 90% of the salary is given to his/her dependents every month after his/her death;
- The above said holds same in the of disability;
- Funeral expenses;
- Old age care expenses.
Documents required for ESIC registration
- PAN card of the directors, shareholders, and employees of the organization
- A registration certificate obtained either under the Shops and Establishment Act or Factories Act
- MOA (Memorandum of Association)
- AOA ( Article of Association)
- Certificate of Company registration or Partnership Deed
- A document depicting the list of all the employees working in the establishment
- A list of directors and shareholders of the company
- The compensation detail of all the employees
- Copy of GST registration
- Copy of current bank statement
- Declaration form of every employee along with their 2 postcard-sized photographs (optional)
Steps for ESIC registration
Step1: ESI registration application, Form-1
Download the ESIC registration application or Form-1, fill it, and then submit it on the official website of ESIC.
Step2: Issuance of the 17-digit number
After the form is verified, the government will issue a 17-digit unique identification number known as a code number. The applicant is required to submit Return of Declaration in Form 3 along with Form 1.
Step3: The employee needs to submit the form
The employee registered under the ESIC scheme will provide the employer the filled form and photographs of his/her own and family members as a part of the registration process. And, after the registration, the employee will get an ESI card.
Step4: Insurance number
Just for the purpose of identification, an insurance number will be allotted to the employee.
Step5: Issuance of temporary identity card
The employee will get a temporary ID card for the duration of three months so that he/she can avail medical benefits for oneself or for family members.
Step6: Permanent photo ID card
In the last step, employees need to fill Form1 and submit two copies of a family photo to the employer, which will be thereafter submitted with the relevant ESIC Branch Office by the employer.
With this, the ESIC registration process completes. If you have any queries regarding the same, then feel free to contact the experts at Enterslice.