ESIC Registration

ESI stands for Employee State Insurance managed by the Employee State Insurance Corporation which is an autonomous body created by the law under the Ministry of Labour and Employment, Government of India.

---

This scheme is started for Indian workers. The workers are provided with a huge variety of medical, monetary and other benefits from the employer. Any Company having more than 10 employees (in some states it is 20 employees) who have a maximum salary of Rs. 15000/- has to mandatorily register itself with the ESIC.

---

Under this scheme, the employer needs to contribute an amount of 4.00% of the total monthly salary payable to the employee whereas the employer needs to contribute only 1.00% of his monthly salary every month of the year. The only exemption to the employee in paying his contribution is whose salary is less than Rs. 100/- per day.

---

Benefits of ESIC registration

• Sickness benefits at the rate of 70% (in the form of salary), in case of any certified illness certified and which lasts for a maximum of 91 days in any year
• Medical Benefits to an employee and his family members
• Maternity Benefit to the women who are pregnant (paid leaves)
• If the death of the employee happens while on work – 90% of the salary is given to his dependents every month after the death of the employee
• Same as above in case of disability of the employee

• Funeral expenses

• Old age care medical expenses

Entities covered under ESIC

As per the government notification dated Sec 1(5) of the ESI Act the following entities are covered:

• 1. Shops
• 2. Restaurants or Hotels only engaged in sales.
• 3. Cinemas
• 4. Road Motor Transport Establishments;
• 5. Newspaper establishments (which is not covered under the factory act)
• 6. Private Educational Institutions