Employees' State Insurance Corporation (ESIC) registration is governed by the Employees' State Insurance Act, 1948. It provides medical, cash, maternity, and other benefits to employees covered under the scheme. Below are the key requirements for ESIC registration in India:

1. Applicability

ESIC registration is mandatory for:

• Establishments with 10 or more employees: This includes factories, shops, and other establishments. (In some states, the threshold may be 20 employees.)
• Wage Limit for Employees: Employees earning a gross salary of ₹21,000 or less per month (₹25,000 for employees with disabilities) are covered under ESIC.

2. Employer Responsibilities

• Employers are required to register their establishment within 15 days of becoming eligible.
• Deduct employee contributions and deposit both employer and employee contributions.

3. Contributions

• Employee Contribution: 0.75% of gross salary.
• Employer Contribution: 3.25% of gross salary.
• Total contribution: 4% of the employee’s gross salary.
• Contributions must be deposited on a monthly basis through the ESIC portal.

4. Benefits of ESIC

1. Medical Care: Comprehensive medical treatment for employees and their dependents.
2. Sickness Benefit: Cash compensation during certified medical leave (up to 70% of wages).
3. Maternity Benefit: Paid leave for female employees during pregnancy or childbirth.
4. Disability Benefit: Compensation for temporary or permanent disability due to work-related injuries.
5. Dependent Benefit: Pension to family members in case of death due to employment injury.
6. Other Benefits: Funeral expenses, rehabilitation, etc.

5. Documents Required for Registration

1. Employer Details:
   • Certificate of incorporation or registration of the establishment.
   • PAN of the business.
   • GST certificate (if applicable).
   • Address proof of the establishment.
2. Employee Details:
   • Name, date of birth, and gender.
   • Monthly gross salary.
   • Aadhaar and PAN numbers.
3. Bank Details:
   • Bank account details of the employer.
   • Cancelled cheque.
4. Other Details:
   • Number of employees.
   • Business activity details.

6. Registration Process

1. Application
2. Form Submission:
   • Fill out the Employer Registration Form and submit required documents.
3. Employee Registration:
   • Register eligible employees and generate their Employee Insurance Number (EIN).
4. Code Generation:
   • Upon successful registration, the employer will receive a 17-digit ESIC Code Number.

7. Compliance Requirements

• Monthly Filing: Contributions must be deposited by the 15th of every month.
• Maintenance of Records: Employers must maintain employee attendance, wages, and contribution details.
• Inspection: Records are subject to periodic inspection by ESIC authorities.

8. Penalties for Non-Compliance

Failure to register or deposit contributions can lead to:

• Fines.
• Interest on late payments.
• Legal action, including prosecution under the ESIC Act.

Prepared by:

Naufal Nazar

Auditor & Secretarial

Picco Advisory