What is ESIC registration?

03-05-2023:02:19:pm

The Employees' State Insurance Corporation (ESIC) is a social security and health insurance scheme for Indian workers. It was established under the Employees' State Insurance Act of 1948 and is managed by the Ministry of Labour and Employment, Government of India. ESIC provides medical, cash, maternity, disability and other benefits to employees and their dependents. ESIC Registration is mandatory for employers who have more than ten employees and are paying wages up to Rs. 21,000 per month. ESIC Registration is an online process, and the employer needs to register with the ESIC website to apply for the registration.

The employer is required to provide information such as company name, address, and contact details, along with the details of the employees, including their names, date of birth, gender, and salary. Once the registration is done, the employer will receive a unique 17-digit number, which is called the ESIC Registration Number.

The ESIC Registration has several benefits for both employees and employers. For employees, it provides them with medical benefits, including free treatment, medicines, and hospitalization. ESIC also provides cash benefits in case of sickness, injury, or disability, and maternity benefits to female employees.

Employees can also avail of benefits like funeral expenses, vocational rehabilitation, and physical aids. For employers, ESIC Registration helps them comply with the law and avoid any legal issues that may arise due to non-compliance.

It also helps them in reducing the cost of medical treatment and provides them with a healthy workforce. Employers are required to contribute 4.75% of the employee's salary, while the employee's contribution is 1.75%. The contribution is payable on a monthly basis, and the employer is required to file the contribution with the ESIC website. ESIC Registration is mandatory for employers, and non-compliance can lead to legal issues and penalties.

The penalties for non-compliance can range from a fine of Rs. 5,000 to imprisonment for up to two years. Therefore, it is crucial for employers to register with ESIC and comply with the law. In conclusion, ESIC Registration is a crucial process for employers in India who have more than ten employees and are paying wages up to Rs. 21,000 per month.

It provides medical, cash, maternity, disability and other benefits to employees and their dependents, and helps employers comply with the law and avoid legal issues. Employers must register with ESIC and contribute towards the scheme on a monthly basis to provide their employees with the necessary benefits.