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ESIC : Registration, Benefits, and Process

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Divya Singhvi

Employee State Insurance
ESIC
Income from salary
Income Tax

ESIC or Employee State Insurance Corporation is an autonomous body created by the law under the Ministry of Labour and Employment, Government of India. It is a multi-dimensional social system that provides socio-economic protection to workers.

What is ESIC?

ESIC or Employees State Insurance Corporation is a statutory corporate body set up under the ESIC Act 1948 which provides financial coverage to workers against sickness, maternity, disablement, occupational disease, or death due to employment injury. The ESI Act encompasses health-related eventualities that workers are exposed to on a daily basis. It acts as a financial safety net for workers.

Who is Eligible for ESI?

An individual should meet certain criteria set by the committee to avail the benefits offered by Employee State Insurance Corporation (ESIC). The ESI Scheme is applicable to:

ITR for Salaried Individuals
CA Assisted Income Tax Return filing for individuals having salary, Rental income from one house property & income from other sources.
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ITR for Salaried Individuals
CA Assisted Income Tax Return filing for individuals having salary, Rental income from one house property & income from other sources.
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Benefits of ESIC Registration

There are a number of attractive features and benefits that the Employee State Insurance Corporation offers that are as follows:

Entities covered under ESIC

As per the government notification under section 1(5) of the ESI, Act the scheme applies to:

*Note: However the threshold for Coverage of establishments is still 20 Employees in Maharashtra and Chandigarh.

Documents required for ESIC Registration

You need to submit the following documents while registering a company or establishment with ESIC:

Process of Registration

ESIC registration is completely online. Follow the below steps to register ESIC:

  1. Register on ESIC Portal

    Click on the ‘Sign Up’ button under the ‘Employer Login’ option on the home screen of ESIC Portal. Fill in the details and submit the form.

  2. Confirmation Mail

    Post sign up to the portal, the employer will receive a confirmation mail sent to the registered e-mail id and mobile number entered at the time of sign up. The email shall contain the username and password details for registering as an employer and employee under the ESIC scheme.

  3. Login using username and password received in the mail

    It will redirect to the page having the option of ‘New Employer Registration’. Click on the ‘New Employer Registration’ option.

  4. Select the ‘Type of Unit’ from the drop-down list

    Click on the ‘Submit’ button

  5. Fill in the details in ‘Employer Registration – Form 1’. On completion click on the ‘Submit’ button.

    The Employer Registration Form-1 contains details pertaining to the unit of the employer, details of the employer and employees.

  6. Make payment for Registration

    Post submission of the Employer Registration Form-1, the ‘Payment of Advance Contribution’ page will open. The employer will need to pay the advance contribution for 6 months. Fill in the below details:
    – Amount to be paid
    – Select the payment mode

  7. Receipt of Registration Letter

    – On the successful payment of six months’ advance contribution, the system-generated Registration Letter (C-11) is sent to the employer.
    – It will contain a 17 digit Registration Number by the ESIC department.
    – The Registration Letter (C-11) is a valid proof of registration of the employer.

FAQ

Is it mandatory for employers to register under the ESI?

Yes. It is mandatory that an employer who falls within the eligibility bracket of the ESI scheme register themselves. The factory, company, or establishment should register with the ESIC within 15 days from the registration.

Are the benefits that are granted to the insured employees transferable?

The benefit that the employee is entitled to be passed on to the insured’s dependents in case of the untimely death of the insured employee due to an injury or disease contracted from the work environment.

What is the ESI Code number?

Every employee receives an ESI code number which is a unique 17-digit identification number of a factory or organization. The factory or organization is registered under the coverage of the Act. The ESIC portal generates the 17 digit number after the employer submits their employee’s information.

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