ESIC Registration - Benefits, Documents Required & Process

ESIC Registration is a mandatory compliance for employers covered under the Employees’ State Insurance Act, 1948. To complete the registration, the employer must sign up on the ESIC portal, submit the Employer Registration Form-1 with the required details and documents and obtain the ESIC registration certificate upon approval. The Employees’ State Insurance Corporation (ESIC) is an autonomous body established by law under the Ministry of Labour and Employment, Government of India, to administer the ESI scheme. This scheme is a social security initiative providing medical, monetary, and disability benefits to employees earning up to ₹21,000 per month. It applies to various establishments such as factories, shops, hotels, restaurants, educational institutions, and other private organisations. This article provides a comprehensive overview of the ESIC registration process, including the benefits and required documents.

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What is ESI Registration?

ESI Registration refers to the mandatory process by which eligible employers and their employees are enrolled under the Employees' State Insurance (ESI) scheme. As mentioned, it is managed by the Employees' State Insurance Corporation (ESIC) under the Ministry of Labour and Employment, Government of India. This scheme provides comprehensive social security, including medical, monetary, and other benefits, to employees earning up to ₹21,000 per month (₹25,000 for persons with disabilities), working in factories or establishments with 10 or more employees (or 20 in some states). Registration must be completed online within 15 days of the scheme becoming applicable to the establishment, ensuring legal compliance and access to ESI benefits for covered workers.

Benefits of ESI Registration

Registration under the ESI scheme provides various benefits for employers and employees, like access to medical care, sickness benefits, maternity benefits, and compensation for disability or death due to work-related accidents. Let’s explore all the benefits one can get through the ESI registration and scheme. 

Section 46 of the Employees’ State Insurance (ESI) Act outlines six key social security benefits available to insured persons and their families. 

1. Medical Benefit

Insured persons and their family members are entitled to full medical care from the first day of insurable employment, with no upper limit on treatment expenses. Medical services include:

• Specialist consultation
• In-patient treatment
• Imaging services
• Provision of artificial limbs and aids
• Reimbursement in special cases

Even retired and permanently disabled persons, along with their spouses, can access medical benefits upon payment of a nominal annual premium of ₹120.

2. Sickness Benefit (SB)

Cash compensation is provided at 70% of wages for up to 91 days in a year during periods of certified sickness, subject to a minimum contribution of 78 days in six months. Additional provisions include:

• Extended Sickness Benefit (ESB): Up to two years of coverage at 80% wage rate for 34 listed long-term diseases.
• Enhanced Sickness Benefit: Full wage compensation for up to 7 days (vasectomy) or 14 days (tubectomy) for insured persons undergoing sterilisation.

3. Maternity Benefit (MB)

Female insured persons are eligible for maternity benefits for 26 weeks, extendable by 1 month on medical advice, at full wage rate, provided they have contributed for at least 70 days in the last two contribution periods.

4. Disablement Benefit

• Temporary Disablement Benefit (TDB): Payable from day one of employment at 90% of wages, regardless of contribution, for the duration of certified disability caused by work-related injuries.
• Permanent Disablement Benefit (PDB): Monthly payments at 90% wage rate, depending on the extent of loss of earning capacity as assessed by a Medical Board.

5. Dependants Benefit (DB)

In case of death due to employment injury or occupational hazards, 90% of the deceased worker’s wage is paid monthly to eligible dependants.

6. Other Benefits

• Funeral Expenses: ₹15,000 is paid to dependants or the person performing the last rites.
• Confinement Expenses: Payable to insured women or insured persons’ wives if childbirth occurs in areas lacking ESI medical facilities.

Get Detailed Information: ESI Benefits List

ESI Registration Eligibility

To be eligible for ESI registration under the Employees’ State Insurance Act, the following conditions must be met:

• Employee Count: The factory or establishment must be non-seasonal and employ more than 10 employees (in some states, the threshold is 20 employees).
• Wage Limit: Employees earning monthly wages up to ₹21,000 are eligible for coverage under the ESI scheme. For persons with disabilities, the wage ceiling is extended to ₹25,000 per month.
• Mandatory Registration Timeline: Once the ESI Act becomes applicable to an establishment, the employer must register with the ESIC within 15 days from the date of applicability.
• Contribution Structure:
• Employer’s contribution: 3.25% of the employee’s monthly wages.
• Employee’s contribution: 0.75% of their monthly wages.
• Exemption: Employees earning less than ₹176 per day are exempt from paying the employee’s share of the contribution, although the employer’s share remains applicable. 

These conditions ensure that eligible establishments and employees are brought under the ESI scheme, thereby gaining access to essential medical and social security benefits.

Learn more: Employees' State Insurance - Applicability & Rates

Entities Covered under ESIC

The following table comprehensively covers the entities, their applicable jurisdiction and the employee threshold for ESI registration.

Documents Required for ESI Registration

Here are the documents required for registration under the ESIC scheme. These documents must be uploaded or furnished while filling out the ESIC registration form:

• Registration Certificate under either of the following (as applicable):
• Factories Act
• Shops and Establishments Act
• Certificate of Incorporation of the establishment, based on the business structure:
• Certificate of Company Registration (for companies)
• Partnership Deed (for partnership firms)
• GST Registration Certificate of the establishment.
• Memorandum of Association (MOA) and Articles of Association (AOA) (for companies).
• Address Proof of the establishment (any one of the following):
• Recent utility bill (electricity, gas, or telephone not older than 3 months)
• Rental agreement of the premises
• Property tax receipt
• List of Employees working in the establishment.
• PAN Card of the business entity and all employees.
• Employee Compensation Details, including salary structure
• Cancelled Cheque of the company’s bank account
• List of Directors (in case of a company).
• List of Shareholders (in case of a company).
• Attendance Register of employees.

ESIC Registration - Step by Step Process Online

With the implementation of a fully digital system, registering under the Employees’ State Insurance Corporation (ESIC) is now completely online, eliminating the need for manual submissions. Below is a step-by-step guide for employers to complete ESIC Registration through the official ESIC portal.

Step 1: Visit the ESIC Portal and Sign Up

• Go to the official ESIC website
• On the homepage, click on the ‘Employer Login’ option.
• On the Employer Login page, click the ‘Sign Up’ button.
• Fill in the required details such as:
• Employer name
• Organization details
• Email ID
• Mobile number
• Submit the form to initiate the registration.

Step 2: Confirmation Mail with Login Credentials

• After submitting the sign-up form, the employer will receive a confirmation email and SMS.
• This communication includes the username and password needed to log in to the ESIC portal.
• These credentials are used for completing the employer and employee registration under the ESIC scheme.

Step 3: Fill Employer Registration Form-1

• Return to the ‘Employer Login’ section on the homepage.
• Log in using the username and password received via email.
• After logging in, select the option ‘New Employer Registration’.
• Choose the ‘Type of Unit’ from the drop-down menu (factory, establishment, etc.) and click ‘Submit’.
• You will be directed to ‘Employer Registration – Form 1’.

Details Required in Form-1:

• Unit Details: Name, address, nature of business, PAN, etc.
• Employer Details: Name, designation, contact details.
• Factory/Establishment Details: Registration under Shops and Establishments Act/Factories Act, number of employees, etc.
• Employee Details: Number of employees, their wages, and other relevant information.
• Once all fields are filled correctly, click on the ‘Submit’ button to proceed.

Step 4: Pay Initial Contribution

• After submitting Form-1, a prompt will appear for payment of six months’ advance contribution.
• Click on the ‘Pay Initial Contribution’ link.
• The system will display the initial contribution amount.
• Choose the ‘Online’ payment option and click ‘Submit’.
• A Challan Number will be generated. Note it for future reference and click ‘Continue’.
• The Payment Gateway page will open where you need to:
• Select the payment mode (net banking, debit/credit card, UPI, etc.)
• Confirm and complete the payment.

Step 5: Receive Registration Letter (C-11)

• Upon successful payment of the advance contribution, the ESIC system will issue a Registration Letter (Form C-11).
• This letter will be sent to the employer’s registered email address.
• It contains a 17-digit ESIC Registration Number, which serves as official proof of registration.
• The Registration Letter (C-11) must be retained safely for compliance and future reference.

Here is the video that succinctly summarises the ESIC registration process.

Compliance Requirements after ESI Registration

After obtaining ESI registration, employers must fulfill several ongoing compliance obligations to remain legally compliant and ensure their employees receive ESI benefits.

• Maintain registers of employee attendance, wages, and workplace accidents as prescribed by ESIC regulations.
• Deduct and deposit both employer and employee contributions to the ESIC fund each month, ensuring timely payment within 15 days of the following month.
• Keep an Accident Register (Form-11) to record all workplace accidents for reporting and claims purposes.
• Maintain an inspection book and employees’ register for ESIC inspections and audits.
• Update employee records and wage details regularly on the ESIC portal.
• Display the ESIC registration certificate and other required notices at the workplace as mandated by law.

Returns to be Filed After the ESIC Registration

Employers registered under ESIC are required to file specific ESIC returns and documentation to report compliance and contributions.

• File half-yearly ESI returns detailing employee wages, contributions, and other relevant information.
• Submit monthly contribution details and payments through the ESIC online portal within the stipulated deadline.
• Provide supporting documents such as attendance registers, wage registers, and accident records along with the returns, if required by ESIC authorities.
• Update any changes in employee numbers, salary structure, or establishment details in the ESIC records as part of ongoing compliance

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ESIC-Related Articles:

• ESI Return Filing
• ESIC Online Payment
• ESIC Challan
• How to Find your ESIC Insurance number?

FAQs on ESI Registration

1. What is ESI Registration?

ESI Registration is the process by which eligible employers and their employees are enrolled under the Employees’ State Insurance (ESI) scheme, providing social security and health benefits to workers.

2. Who is required to register for ESIC?

Any non-seasonal factory or establishment with more than 10 employees (20 in some states) earning up to ₹21,000 per month (₹25,000 for persons with disabilities) must register for ESIC.

3. Is ESIC registration mandatory?

Yes, ESIC registration is mandatory for all eligible establishments as per the ESI Act. Non-compliance can result in penalties and legal consequences.

4. How do I register for ESIC online?

Employers can register online by visiting the ESIC portal, signing up as an employer, filling in the required details, and submitting the application. Registration is instant and paperless.

5. What documents are required for ESIC registration?

Key documents include registration certificates, GST certificate, PAN cards, employee details, address proof, cancelled cheque, and digital signatures.

6. What is the ESIC contribution rate?

Employers contribute 3.25% and employees contribute 0.75% of the monthly wage. Employees earning less than ₹176 per day are exempt from their contribution.

7. When do ESIC benefits start after registration?

ESIC benefits are available from the very first day of registration and the start of the contribution period.

8. Can establishments with fewer than 10 employees register for ESIC?

Yes, voluntary registration is allowed for establishments with fewer than 10 employees or for employees earning above the wage threshold, offering additional social security.

9. What is the ESIC registration number?

Upon successful registration, a unique 17-digit ESIC registration number is generated and sent to the employer’s registered email.

10. How can employees access their ESIC benefits?

Employees can use their ESIC number to avail medical and cash benefits at empanelled hospitals and dispensaries.

11. What returns must be filed after ESIC registration?

Employers must file half-yearly ESI returns and submit monthly contribution details through the ESIC portal.

12. What are the penalties for non-compliance with ESIC regulations?

Failure to register or comply can result in monetary penalties, interest on unpaid contributions, and possible imprisonment.

13. Can ESIC registration be cancelled?

Yes, ESIC registration can be cancelled if the establishment no longer meets the eligibility criteria. Proper documentation and application must be submitted to ESIC authorities.

14. How do I update employee details after ESIC registration?

Employers can log in to the ESIC portal and update employee information, salary changes, or other relevant details as needed.

15. Are ESIC benefits available to employees’ families?

Yes, ESIC provides medical benefits not only to employees but also to their dependent family members.