A Comprehensive Guide to ESIC Registration in India

A Comprehensive Guide to ESIC Registration in India

Employee State Insurance Corporation (ESIC) is a social security scheme that provides health insurance and other benefits to employees in India. It is a self-financing social security and health insurance scheme for Indian workers, managed by the Employees State Insurance Corporation under the Ministry of Labour and Employment, Government of India.

Who needs to register for ESIC?

Every employer who has 10 or more employees must register for ESIC. It is mandatory for both the employer and the employees to contribute to the ESIC fund. The employer must deduct the employee's contribution from their salary and also make a matching contribution on behalf of the employee.

Benefits of ESIC Registration

ESIC registration provides several benefits to both employers and employees, including:

• Medical benefits
• Sickness benefits
• Maternity benefits
• Disablement benefits
• Dependants’ benefits

Documents required for ESIC Registration

When registering for ESIC, the following documents are required:

• Memorandum and Articles of Association
• List of employees
• PAN card of the business
• Address proof of the business
• Details of the bank account

Steps to register for ESIC

Step 1: Visit the ESIC portal

Visit the ESIC portal and click on the 'Sign up' button to create an account.

Step 2: Fill in the registration form

Fill in the registration form with all the required details, including the name of the business, address, and contact information.

Step 3: Upload the necessary documents

Upload the necessary documents, such as the Memorandum and Articles of Association, list of employees, PAN card, address proof, and bank account details.

Step 4: Submit the registration form

Review the information provided and submit the registration form. You will receive a confirmation email once the registration is complete.

Step 5: Pay the registration fee

Pay the registration fee online through the ESIC portal to complete the registration process.

ESIC Contribution Rates

Both the employer and the employee are required to contribute to the ESIC fund. The current contribution rates are as follows:

• Employer's contribution: 3.25% of the wages
• Employee's contribution: 0.75% of the wages

ESIC Renewal

ESIC registration is valid for a period of one year and must be renewed annually. To renew your ESIC registration, you must log in to the ESIC portal and complete the renewal process before the expiry date.

Penalties for non-compliance

Failure to register for ESIC or non-compliance with the ESIC regulations can result in penalties and legal action. Employers who do not register for ESIC can face fines, imprisonment, or both.

Conclusion

ESIC registration is a mandatory requirement for employers in India with 10 or more employees. It provides health insurance and other benefits to employees, ensuring their well-being and financial security. By following the steps outlined in this guide, you can easily register for ESIC and comply with the regulations set forth by the government.