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Read MoreKey Information
What is the Employee State Insurance Corporation?
Features of the Employee State Insurance Corporation
Employee State Insurance Corporation Registration Eligibility
Documents Required for Employee State Insurance Corporation Online Registration
Benefits of Employee State Insurance Corporation Registration
Returns to be Filed After Employee State Insurance Corporation Registration
What is the Employee State Insurance Corporation?
The Employee State Insurance Corporation, or ESIC, was established under the Employees’ State Insurance Act of 1948. This scheme acts as a safety net for workers and their families, providing support in unexpected situations such as illness, maternity, disability, or death due to work-related injuries. ESIC collects contributions from both workers and the government to ensure financial assistance is available during difficult times.
The Employee State Insurance Corporation scheme covers employees earning wages up to Rs. 21,000 per month across various sectors, including factories, shops, hotels, restaurants, cinemas, road transport, private medical institutions, and educational establishments. The scheme is not applicable to casual workers.
Features of the Employee State Insurance Corporation
The primary aim of the Employee State Insurance Corporation is to protect the interests of workers in the organized sector against the impacts of sickness, maternity, disability, and death due to employment-related injuries. Some of the key features of the Employee State Insurance Corporation include:
ESIC Contribution Structure:The Employee State Insurance Corporation operates on a funding model based on contributions from employers and employees. The current contribution rate is 4% of the wages, split as 3.25% from the employer and 0.75% from the employee. This collaborative funding approach supports ESIC's comprehensive welfare programs.
Holistic Healthcare Ecosystem: Beyond financial contributions, the Employee State Insurance Corporation is committed to healthcare for employees and their dependents. This is facilitated through a vast network of hospitals, dispensaries, and diagnostic centers nationwide, providing primary, secondary, and tertiary medical services along with preventive health measures.
Cash Benefits for Employees: The Employee State Insurance Corporation provides cash benefits to employees facing sickness, maternity, disablement, or death due to employment injury, calculated as a percentage of their average daily wages.
Welfare Initiatives:The Employee State Insurance Corporation also implements various welfare schemes for the holistic well-being of employees and their dependents, including vocational and physical rehabilitation, education allowances, and skill development programs.
Employee State Insurance Corporation Registration Eligibility
The Employee State Insurance Corporation scheme is for workers earning less than Rs. 21,000 per month (Rs. 25,000 for disabled workers).
Establishments with more than 10 or 20 employees (depending on the state) must enroll in the Employee State Insurance Corporation scheme.
Employers must register with ESIC within 15 days of commencing operations.
The employer pays 3.25% of the worker’s monthly wage, while the worker contributes 0.75%.
Workers earning less than Rs. 176 per day are exempt from contributions.
Documents Required for Employee State Insurance Corporation Online Registration
To register for ESIC online, the following documents are needed:
| Entity Type | Documents Required |
|---|---|
| Private Limited Company / One Person Company | Certificate of Incorporation Memorandum of Association (MOA) & Articles of Association (AOA) List of all employees PAN Card of the company List of shareholders and directors GST Registration Cancelled Cheque of the company Address proof of the company Mobile number and primary email ID Digital Signature of the director |
| Partnership / Limited Liability Partnership (LLP) | Partnership Deed List of all employees with details PAN Card of the Partnership Firm or LLP Cancelled Cheque of the firm's bank account Digital Signature of the partner Mobile number and email ID GST Registration |
| Factories | Registration Certificate under the Factories Act and Shops and Establishment Act Employee details (name, father’s name, mobile number, date of birth, joining date, salary, postal address, nominee name, grade, and identity proof) Attendance registers of the employees PAN Card of the business establishment Cancelled Cheque of the factory's bank account Digital Signature of the proprietor or partner Address proof of the proprietor Mobile number and email ID of the proprietor |
Documents Required to Start Sole Proprietorship Registration
While no formal registration is necessary, certain basic registrations may be required. Here’s a list of essential documents for Sole Proprietorship registration:
PAN Card
Aadhaar Card
Colour Photo
Name of Business
Address Proof
Office Address
NOC from the Owner of the Office Space
