What is ESIC?
ESIC stands for Employee State Insurance Corporation which is a self-governing body created by the law under the Ministry of Labour and Employment, Government of India. The scheme was mainly started for Indian workers under which the workers are provided with a different and huge variety of medical, monetary, and other benefits by the employer.
Every company that possesses more than 10 employees (which is 20 employees in a few states) having the maximum salary of Rs. 15000/- requires ESIC registration and it’s mandatory.
Benefits of ESIC Registration
There are a plethora of benefits of getting an ESIC registration. Some of the benefits under the ESIC scheme are as follows:
· Sickness benefits at the rate of 70% (in the salary form). The same is applied in the case if there’s any certified illness and it lasts for a maximum of 91 days in any year.
· Several medical benefits offered to the employees and his/her family.
· Maternity benefit to the women who are pregnant (counted as paid leaves).
· If the employee meets death while on the work, then 90% of salary is offered to his/her dependents every month after the death of the employee.
· The same holds in the case of disability of the employee.
· Funeral expenses
· Old age care medical expenses are also provided.
Documents required for ESIC Registration
· A certificate of registration obtained either under the:
§ Factories Act
§ Shops and Establishment Act
· In case of a partnership, you need to submit Partnership deed.
· Memorandum of Association (MOA) and Articles of Association (AOA) of the company.
· A complete list of employees working in the Establishment.
· PAN card of the business entity as well as all the employees under it.
· The compensation details of all the employees in the company.
· A canceled cheque of the Company’s bank account.
· A list indicating the info about all the directors of the company.
· A complete list of the shareholders of the company.
· A register containing the attendance of the employees of the company
After gathering all the above-mentioned documents, the following process is to be followed by the applicant for the registration of the ESI:
1. Form No -1 (which is Employee Registration Form) needs to be downloaded and filled by the applicant.
2. Download the PDF version of the form and fill it. After the former process is completed, submit the form on the website itself along with the above-mentioned documents.
The process after the form verification
1. After the form has been verified, the government will issue a 17 digit unique number.
2. Employee registered under this scheme will provide the employer with the filled form and photographs of his family members as a part of the procedure of ESIC registration. The employee will get an ESI card after the ESIC registration.
3. Any change in the company or its employees must be informed to the ESIC.
Entities covered by the ESIC
As per the provisions or government notification dated Sec 1 (5) of the ESI Act, the following entities are covered for who ESIC registration is mandatory:
· Restaurants or Hotels that are engaged only in sales activities.
· Private Educational Institutions.
· Road Motor Transport Establishments.
· Newspaper establishments (not covered under the Factory Act).
· Shops.
· Cinemas.
For more information on ESIC registration process, you can contact the experts of Enterslice by clicking here. Our team will help you with the process till the end and will ensure you have got the ESIC registration.
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