Ever thought about how to ensure your employees are protected if they fall ill or get injured at work? ESIC registration, or Employee State Insurance registration, is required for certain businesses under the ESIC Act, 1948. Employees covered under this scheme get access to medical care, maternity leave, and support in the event of disability or work-related injuries. Following ESIC rules not only keeps your employees safe but also helps you avoid penalties under labour laws.
This write-up explains ESIC registration in detail, including eligibility, documentation, online procedures, contribution rates, benefits, and post-registration compliance.
Who Must Register under ESIC?
ESIC registration is mandatory for the following categories:
- Eligible establishments: Any non-seasonal factory or establishment employing 10 or more persons (in some states, the threshold is 20 employees).
- Eligible employees: Employees earning a monthly wage of up to ₹21,000 (or ₹25,000 for persons with disability, PwBD) are covered under the scheme.
- Types of establishments: Factories, manufacturing units, commercial establishments, shops, hotels, restaurants, cinemas, road-transport undertakings, private hospitals/clinics, educational institutions, newspaper offices, and similar service-sector establishments - provided they meet the employee count and wage limits.
Employers must complete ESIC registration within 15 days of becoming eligible.
Documents Required for ESIC Registration
For the registration, employers need to provide several documents, which can be submitted digitally through the ESIC portal:
- Establishment Proof: Registration certificate under the Factories Act or Shops & Establishment Act.
- Business Incorporation Proof: Partnership deed, Certificate of Incorporation, MOA-AOA, or GST certificate.
- Address Proof: Utility bills, rent agreements, or property bills for the establishment.
- Bank Account Proof: Cancelled cheque of the registered business bank account.
- Employee Details: Names, wages, joining dates, and other relevant details.
- Employer PAN: PAN of the business, and PAN/ID proof of directors or partners, if applicable.
Step-by-Step Process for Online ESIC Registration
The ESIC registration process is fully online and can be completed in a few steps:
Step -1 Login / Sign-Up on ESIC Portal
Visit the official ESIC website, click on Employer Login / Sign-Up, and provide basic business and contact details.
Step -2 Email & Mobile Verification
After sign-up, a verification email and mobile OTP are sent. Upon validation, credentials (username/password) are issued.
Step -3 Fill Employer Registration - Form 1
Under New Employer Registration, provide details about:
- Business type and establishment name
- Address and bank account
- Employer identity and number of employees
- Complete employee details (names, wages, joining dates)
Step -4 Pay Initial ESIC Contribution
Once Form 1 is submitted, make the advance contribution payment in accordance with ESIC guidelines. Online payment options include net banking, UPI, or debit/credit cards. Keep the challan number for records.
Step- 5 Receive Registration Letter
After successful processing, ESIC issues a registration letter via email with a 17-digit registration number - proof of your registration. Your establishment is now officially registered.
Once registered, employers can manage insured employees, contributions, and future filings through the ESIC portal.
ESIC Contribution Rates
The contribution to ESIC is shared between employers and employees:
- Employer contribution: 3.25% of the total monthly wages of eligible employees
- Employee contribution: 0.75% of monthly wages
Employees earning less than ₹176 per day are exempt from contributing, though the employer share remains mandatory.
Advantages of ESIC Registration
ESIC registration ensures that employees and their dependents have access to multiple social security benefits:
- Medical Benefits: Comprehensive healthcare, including outpatient treatment, hospitalisation, specialist consultations, and diagnostics.
- Sickness Benefits: Cash allowances during certified periods of illness.
- Maternity Benefits: Paid leave and medical support for pregnant women employees.
- Disability & Employment Injury Benefits: Compensation for temporary or permanent disability caused by work-related accidents or illnesses.
- Dependent & Death Benefits: Financial support for dependents in the unfortunate event of an employee's death, along with funeral expense assistance.
- Peace of Mind: Provides employees and employers assurance that unforeseen risks are covered under a statutory scheme.
Post-Registration Compliance
Registering for ESIC is only the first step. Employers must maintain ongoing compliance:
- Monthly Contributions: Deposit employer and employee contributions before the due date.
- Employee Records: Maintain attendance, wage registers, and employment details. Update employee information for joining, leaving, or salary changes.
- Statutory Notices: Display ESIC rights and scheme details at the workplace as mandated by law.
- ESI Returns: File biannual returns with accurate details of insured employees and contributions.
Non-compliance may result in penalties under the Employees' State Insurance Act, 1948.
Returns to be Filed After ESIC Registration
The Employers must submit the following to ESIC:
- Attendance register
- Form 6 register
- Wage register
- Accident register (for workplace incidents)
- Monthly returns and contribution challans
These returns ensure transparency and legal compliance under the ESIC scheme.
ESIC Registration Fees
There is no government fee for ESIC registration. However, businesses may pay a nominal service charge if registration is done through third-party consultants or platforms. Registration is completely online and cost-effective, enabling employers to easily comply with labour laws.
Conclusion
ESIC registration is mandatory for establishments with 10 or fewer employees earning under ₹21,000, ensuring access to medical and social security benefits. Online registration and timely compliance help employers protect their workforce, maintain legal adherence, and avoid penalties effectively. Setindiabiz helps employers complete ESIC registration smoothly, offering step-by-step guidance, eligibility details, documentation support, and compliance tips to protect employees and ensure legal adherence efficiently.
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