Domiyance Finance Consultancy LLP
Any non-seasonal factory and company 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. Under this scheme, the workers are provided with a huge variety of medical, monetary and other benefits from the employer.
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 which is an autonomous body created by the Ministry of Labor 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.
Under this scheme, the employer needs to contribute an amount of 3.25% of the total monthly salary payable to the employee whereas the employer 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.
ESIC Registration ensures that employees enjoy the following advantages:
From the very first day of employment, ESI Registration members and their families are entitled to enjoy the benefits of complete medical care and insurance.
In case there is any permanent disablement to the insured person, 90% of his salary is provided as a monthly payment in the form of insurance benefit.
Sickness benefits are provided to the employee at the rate of 70% of his salary in case such sickness continued for exceeding 91 days in a year and the same is also certified.
Medical benefits are provided to the insured person along with his family members. Full medical care is provided to all persons registered under ESI and their family members – from the day the person enters insurable employment. There is no ceiling on expenditure on the treatment of an Insured Person or his family member. Medical care is also provided to retired and permanently disabled insured persons and their spouses on payment of a token annual premium of Rs.120/-
Maternity benefits are provided to the women in the form of paid leaves. Maternity benefit for confinement/pregnancy is provided for three months, which is extendable by further one month on medical advice at the rate of full wage subject to contribution for 70 days in the preceding year.
Funeral expenses are provided in case of death of any employee covered under ESIC. An amount of Rs.10,000/- is payable to the dependents or to the person who performs last rites from day one of entering insurable employment.
90% of the salary of the insured person is given to the family of a deceased employee, in case such death occurred while in employment.
Medical care and benefits are provided after retirement or in old age.
An insured person having insurance for more than three years is provided unemployment benefits which become unemployed. Under the Rajiv Gandhi Shramik Kalyan Yojana, unemployment allowance is payable to an insured Person who become unemployed after being insured three or more years, due to closure of factory/establishment, retrenchment or permanent invalidity. The applicable unemployment allowances provided are:
Step 1 : Log in to ESIC Portal
Step 2: Confirmation Mail
Step 3: Employer Registration Form-1
Step 4: Payment for Registration
Step 5: Registration Letter