Hello, in this post we will discuss the ESI registration procedure in detail. Employees’ State Insurance or ESI is a social security program for Indian workers which offers medical and disablement benefits.
We will cover the below topics in this post:
- Eligibility for ESI registration
- ESI applicability and coverage criteria
- Benefits of ESI registration
- Online ESI registration procedure
Eligibility for ESI registration
According to a notification of the ESI Act, the following entities are eligible for ESI registration:
- Movie theatres
- Newspaper establishments (not covered under factory’s act)
- Private educational institutions
- Restaurants engaged only in sales
- Road motor Transport establishments
ESI applicability and coverage criteria
ESI applicability criteria as per the ESI act is that any employee whose gross salary is upto Rs. 21000 can avail this by the help of the employer. Also, it is mandatory for the employees, labour workers etc having gross salary upto Rs.21000 under such type of industrial unit where 50% to 90% injury or health cause is during company premises. ESI contribution by the employee is 1.75% and 4.75% by the employer.
Benefits of ESI registration
- Complete medical care to all persons registered under ESI and their family members.
- Retired and permanently disabled insured persons and their spouses are provided the medical care on payment of Rs.120/- of a token annual premium.
- This benefit at the rate of 70% (in the form of salary) is payable in case of any certified sickness for a maximum of 81 days in a year.
- In order to be eligible for the sickness benefit, the insured worker has to contribute for 78 days for the period of 6 months.
- Workers can claim extended sickness benefit upto 2 years at an enhanced rate of 80% of salary, in case he / she is suffering from long-term diseases.
- Maternity benefit for pregnancy is provided for the period of 3 months.
- Extendable by further one month on medical advice at the rate of complete salary subject to contribution for 70 days in the next year.
Disablement and Dependant benefit
- In case of permanent disablement, the benefit is payable at the rate of 90% of wage in the form of monthly payment as certified by Medical board.
- If in case of the death of an employee during company premises Dependant benefit is paid at the rate of 90% of the salary to his / her dependants every month after the death of the employee.
- Dependants or the person who performs the last rites, Rs. 10000/- is paid to them from the day 1 of entering the insurable amount.
Old age care medical expenses
- Medical facilities are free of cost for the insured persons who go out employment because of old age or disability due to a work-related injury.
Under Rajiv Gandhi Sharmik Yojana, unemployment allowance is payable to the insured worker who becomes unemployed after being insured for 3 or more years. The allowances provided are;
- Unemployment allowance equal at the rate of 50% of salary for a maximum period upto 1 year.
- Medical care for self and family members from ESI hospital during the period zip receives unemployment allowance
- Also, vocational training provided for upgrading skills – Expenditure on fee / traveling allowance.
Online ESI registration procedure
Step-1 Firstly, you need to Go to www.esic.in (Use Mozilla Firefox or Internet Explorer if the link does not open in chrome browser) and click on signup.
Step-2 Enter Company Name, Principal Employer name, State, region, email ID then tick the checkbox and “Submit“.
Step-3 An email is sent to you after sign up with the login credentials. Again go to the ESIC website then log in with the details sent to you in the email.
Step-4 Next, Click on “New Employer Registration“
Step-5 Select the Type of unit and click on Submit
Step-6 Enter the necessary unit details
Note: The options with the asterisk (*) are mandatory to be filled.
Step-7 Select whether the Factory / Establishment is hired or owned. Then, you need to click on Next to proceed, reset to re-enter the details, Cancel to exit and save to save the data.
Step-8 You need to enter the Nature of business, PAN details etc, and select the type of employer from the drop-down.
Step-9 Enter the date of commencement of a factory / establishment. Next, you need to select the type of license from the drop-down menu as shown below.
Step-10 Just click on Next and you will be guided to the next screen where you have to enter the factory details.
Step-11 Select the constitution of ownership and owner details.
Step-12 Click on the link below as shown in that screen.
Step-13 You need to enter all the details and click on Save. Click on Add more to add more designation. Tick the checkbox if you want to remove the entire row you can click on Remove.
Step-14 After saving the above details, you will get the below screen click on Next for the further process.
Step-15 In the employee details screen, click on the link marked in red.
Step-16 Next, enter the number of employees with the gender. Also, enter the number of employees whose salary is below Rs. 21,000 then click on Save.
Step-17 Click on the link and you will get an employee declaration form.
Step-18 Select “Yes” if IP is registered and enter the IP number and Date of Joining. Enter “No” if IP is not registered. Then, click on Continue.
Step-19 Once you click on Continue, you will get the Insured Person (IP) Particulars screen, enter the name of the IP, Name of the IP’s father, Address, Date of birth, gender, Marital status etc.
Step-20 Next, enter the Permanent address, Date of joining, nominee details and family details. Then, check the declaration by clicking on that link given in the picture.
Step-21 You need to enter the details and click on Save.
Step-22 On saving the above details you will get the below screen again. Tick the checkbox and click on Submit.
Step-23 After entering the details of minimum 10 / 20 IP’s successfully you can click on “Close“.
Step-24 Select the Branch Office from the drop-down menu.
Step-25 From the same screen select the Inspection Division.
Step-26 Finally, tick the checkbox and submit the details.
Step-27 You will get the below screen click on the link “Pay Initial contribution” then enter the amount you need to pay and click on submit. It will lead you to your bank credit / debit card details select the appropriate option. The payment is successful.
The employer will receive the system generated Registration Letter (C-11 ) on his / her registered email id once challan gets released from the bank. The C-11 is a computer generated letter and does not require any signature and can be used as a valid proof of registration of the unit under the ESI Act.
This ends our post on ESI registration procedure. Let us know your opinion by commenting below.