3 Points You Must Know About ESI Registration
1. State-Wise Applicability::
The primary criteria for compulsory registration are based on the number of employees. However, it varies from state to state. In some states, the minimum number of employees is 10, while in other states, it is 20.
a. ESI compulsory registration applies only to factories and establishments as mentioned explicitly in the ESI Act. Further, Seasonal factories and mines are excluded.
b. It does not apply to employees drawing salaries more than Rs. 21000 per month.
c. However, for no. of the employee for applicability purpose, employees drawing more than Rs.21000 per month are also included.
3. Voluntary Registration:
There is no provision of voluntary registration under the ESIC Act.
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FAQ`s Regarding ESIC Registration
Any employer employing more than ten employees (in some states more than 20 employees) has to deduct 0.75 % of the basic salary and dearness allowance from the specified employee and contribute 3.25% as own contribution every month and deposit it in the ESI account of the employee. For this purpose, the employer has to take registration with the Employee State Insurance Corporation (ESIC). This is known as ESIC registration. This ESI account is managed, maintained, and regulated by the Employee State Insurance Corporation (ESIC). However, the employees earning less than Rs.176 per day are exempted from paying their part of the contribution.
Step2: Click on Pay e-challan
Step3: Fill employer code and enter the captcha and click the search option
Step4: Select the Challan Number
Step5: Click on continue and select the bank
Step6: Make the online payment and download the challan for record purposes.
An ESIC challan is generated after filing the return and is used for payment of the monthly esi amount, which is deducted from the employee’s salary and contributed by the employer.
The ESI employee contribution is calculated @ 0.75% of the employee’s basic salary and dearness allowance.
Now the esic contribution from the employee and employer can be paid only by using the online payment system. This is known as esic e-payment.
There is no government fee for ESI registration. However, you need to pay six months’ contribution in advance at the time of registration.
The significant benefits of registration under the ESI are as follows:
(a) Medical Benefit :
The medical expense on the treatment of the employee and his family member with no upper limit is provided. Even the retired employee can avail of this benefit for himself and his spouse by paying a token amount of Rs.120 per annum.
(b) Sickness Benefit :
Cash compensation @ 70 % of wages is paid to eligible employees for certified diseases and a maximum of 91 days in a year as a sickness benefit.
(c) Maternity Benefit :
Maternity Benefit for pregnancy at full wage rate is paid to the eligible employee for 26 weeks, which can be further extended by one month on medical advice.
(d) Disablement Benefit
1. Temporary disablement benefit: The temporary Disablement Benefit at the rate of 90% of wage is paid to the eligible employee during the whole period of disability.
2. Permanent disablement benefit: The permanent disablement benefit at the rate of 90% of wage to the eligible employee depending upon the extent of loss of earning capacity due to the disablement is paid.
(d) Dependants Benefit:
Dependant benefit at the rate of 90% of wage is paid to the dependants of a deceased eligible employee.
The above are the main benefits of ESI registration. Apart from the above benefits, other benefits such as funeral expense, Confinement expense, Rehabilitation expense, etc., are also paid to the eligible employee.
The steps to download the ESIC e pehchan card from the ESIC portal is as follows:
Step I: Visit
https://www.esic.in/ESICInsurance1/ESICInsuranceP ortal/ portal login.aspx
Step II: Click on employer login
Step III: Login with your user name and password
Step IV: Click on the e-pehchan card under the employee section.
Step V: Search an employee by IP no.
Step VI: Now click on the view counterfoil
Step VII: Now, click on print to download the e- pehchan card