Understanding the ESIC Scheme is very crucial as it provides many benefits. ESIC or ESI Registration scheme is a social security scheme. Consequently, The government of India provides the ESIC Scheme to the public, and it comes under the Ministry of Labour and Employment. It offers several benefits to its subscribers and their dependents. Around 130 million Indians are taking advantage.
Therefore, in this article, we will try to understand the ESIC Scheme: ESIC Registration, Benefits, and Process in detail.
What is an ESI or ESIC Scheme?
Employees’ State Insurance (ESI) is an Indian social security scheme governed by the Employees’ State Insurance Act of 1948.
In simple words, The ESI Scheme assists workers with benefits who cannot work due to illness, accident on the job, or other reasons.
In addition, it provides some significant advantages in the event of death of an insured person while employed or medical care to the insured individual and his or her family.
Who is eligible to get ESIC Registration?
Any business can apply for ESIC Registration as it provides several advantages. However, it is mandatory for any factory and specified establishment with ten or more permanent employees and employees having monthly wages of less than Rs. 21,000/- to register for ESI. Specified Establishments are as follows:
- Firstly, Cinemas, shops, hotels, or restaurants that are conducting sales only without doing any manufacturing activity.
- Secondly, Establishments that provide motor vehicle transportation services on the road.
- Similarly, We have Newspaper businesses that aren’t covered by the Factories Act.
- Private Educational Institutions (which include corporations, joint ventures, trusts, charitable organizations, and private ownership, among others)
Is there any penalty for missing ESI Registration and its returns?
Yes, A fine of INR 10,000/- will be imposed if an employer fails to comply with the law, such as by failing to obtain ESIC employer registration online or failing to comply with the ESI return filing procedure.
Know about the ESIC Scheme’s Coverage
The ESIC scheme completely covers India and applies to businesses that are licensed under the Factories Act or the Shops and Establishments Act employing ten or more people. To illustrate, the workers with disabilities, the annual wage cap for coverage under this program is 25 thousand rupees per month.
Understanding the ESIC Scheme’s benefits
ESI Registration has a number of advantages. The following are a few of the most notable.
- If an employee dies while on the job, their dependents (family members) receive 90% of their income per month after the worker’s death.
- Likewise, The same laws apply in the event of an employee’s injury.
- Expenses for elderly healthcare
- In the event of a certified illness lasting 91 days in a single year, the government will pay 70 percent sickness health care coverage (in the form of salary).
- Expenses for a funeral
- Medical expenses for the elderly
- Pregnant women receive a maternity allowance (paid leaves)
Required Documents for ESI Registration
The following documents are mandatory for ESI or ESIC registration.
- Registration Certificate
- Address proof
- PAN card
- Canceled cheque
- Digital Signature of anyone Director.
What is ESIC Registration Returns?
After registering, employers have to file ESI returns twice a year. The documents to file the ESIC returns online include:
- Employee attendance register.
- Form 6 Register.
- Register of Wages.
- Record of accidents on the business premises.
- Monthly returns and challans.
However, if you want any other guidance related to ESIC Registration, please feel free to talk to our business advisors at 8881-069-069.
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