ESIC REGISTRATION
Employee State Insurance Corporation or ESIC is a self-financing social security and health insurance scheme which provides medical benefit, sickness benefit, maternity benefit and various other benefits such as funeral expenses, free supply of physical aids etc. to the employees and their family.
Any factory or business establishment having 10 or more than 10 employees, irrespective of salary, have to register with ESIC. ESI contributions must be made for all employees having a salary of less than Rs.21,000 per month. Employees with less than Rs. 21,000 monthly wages get health and sickness benefits through this statutory scheme. The state government also contribute 1/8th share cost of the medical benefit.
Who needs to register for ESI? (What establishments needs ESI registration?)
The following establishments having 10 or more employees attracts ESI coverage.
- Shops
- Hotels or restaurants not having any manufacturing activity, but only engaged in ‘sales’
- Cinemas including preview theaters
- Road Motor Transport Establishments
- News paper establishments
- Private Educational Institutions (those run by individuals, trustees, societies or other organizations and Medical Institutions including Corporate, Joint Sector, trust, charitable, and private ownership hospitals, nursing homes, diagnostic centers, pathological labs)
Rate of Contribution towards ESIC:
Currently the employee’s contribution rate towards ESIC (w.e.f. 01.07.2019) is 0.75% of the wages and that of the employer’s is 3.25% of the wages paid/payable in respect of the employees in every wage period.
However, this rate keeps on changing from time to time.
- A registration certificate obtained either under the:
- Factories Act
- Shops and Establishment Act
- Certificate of Registration in case of Company, and Partnership deed in case of a Partnership
- Address proof
- Rent receipt of the occupied premises, mentioning its capacity
- Photocopy of the last building tax/property tax receipt
- Photocopy of registration
- Certificate of commencement of production
- Registration No. of CST/ST/GST
- Memorandum of Association and Articles of Association of the Company
- A list of all the employees working in the Establishment
- PAN Card of the Business Entity as well as all the Employees working under the entity
- 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
- Register containing the attendance of the employees
