Employee State Insurance Corporation (ESIC)
The Employees’ State Insurance Act, 1948 was enacted by the legislature as an integrated need based on the social insurance scheme. ESIC stands for Employee State Insurance Corporation is an autonomous body created by the Ministry of Labour and Employment that governs and regulates the Employee State Insurance in India. Employee State Insurance is a self-financing social security scheme initiated for the benefits of the Indian workers by providing them with the necessary benefits such as medical facility, monetary facilities and such other benefits from his employer. ESI is managed and governed by the rules and provisions issued by the ESIC Act 1948.
This scheme is started for Indian workers. The workers are provided with a huge variety of medical, monetary and other benefits from the employer. Any Company having more than 10 employees (in some states it is 20 employees) who have a maximum salary of Rs. 15000/- has to mandatorily register itself with the ESIC.
The ESIC Act also provides reasonably good medical care to the workers and their immediate dependents. Online ESIC registration is compulsory for entities employing, employees earning Rs. 21,000 (including DA) per month or less as wages or salary.
The scheme of ESI is contributory in nature. Both employee’s and employer’s contribution is required at a specific rate. Though, rates are amended from time to time. The employer needs to contribute 4.75 %, and the employee needs to add 1.75% a total share of 6.5% of the Gross salary under the ESIC Act. This fund is supervised by the ESI Corporation incorporated under the ESI Act. The entity owner has to mandatory register under ESI Scheme within 15 days from the date of incorporation. Employees who earn upto Rs137 of daily average wage are not entitled to be a part of contribution. However, it is the responsibility of the employer to contribute their own shares in respect of these employees.
Benefits of ESIC registration
Entities covered under ESIC
As per the government notification dated Sec 1(5) of the ESI Act the following entities are covered:
Procedure for Registration :
Process after the form verification
Employees Registration Process
Employees are required to fill Form 1, and two copies of the family photo also need to be submitted to the employer, which after that is submitted with the relevant ESI Branch Office by the employer.
For the purpose of identification under the ESI scheme, an insurance number will be allotted to the employee.
Temporary Identity Card issuance
For availing the medical benefit for him/ herself or on behalf of his/ her family, a temporary identity card will be granted to employees for a duration of three months.
Permanent Photo Identity Card
Finally, a Permanent Photo Identity Card is issued.