Employees’ State Insurance Corporation(ESIC): Registration


Employees’ State Insurance Scheme was first enacted in 1948 for social security of all the employees working in the organized sector. Initially, this scheme only covered the factory workers but later was expanded to cover other establishments like hotels, cinemas, restaurants, educational/medical institutes, and shops. This scheme extends several benefits like sickness benefit, disablement benefit, maternity benefit, dependent benefit, medical benefit, and other benefits like confinement expenses, funeral expenses, unemployment expenses amongst others. This scheme has huge coverage with around 787 centres across 29 states. Till now, approximately 5.50 crore of the population has been benefitted by the scheme.

The contribution to the scheme is made by the employer and the employee. Employer contributes 4.75% of the employee wages and the employee contributes 1.75% of the salary payable to the employee. However, if the employee is earning less than Rs. 100 are not liable to pay their share of contributions.

The ESIC registration is mandatory for institutions with 10 or more employees. However, for some establishments, the minimum employee requirement is 20.

Check the table attached below to see the minimum employee requirement as per the states.


Registration:

The registration process is entirely online. The employer first needs to register himself. The employer can register himself at ESIC web portal, www.esic.in. After the employer is registered, he/she can then later their employees as soon as they are employed. If you are working for the first time and then your employer will ask for personal information like details of your family members, your residence, and the clinic from where the employee would like avail medical treatment to get you registered under the ESI scheme. Once you are registered by the employer, you will receive an insurance number which will be unique in nature and will be valid throughout the employment period even if the employee changes the job. In case, the employee is already registered with the ESIC and has an insurance number, the employer just needs to add and update the employer’s details.


ESIC Registration Benefits:

Registration with ESIC comes with several benefits for employees. It not only provides a security cover to the employees but also extends unemployment allowances, dependent’s benefits, disablement benefits, maternity benefits, sickness benefits, medical benefits, and other benefits. Let’s read about these benefits in detail.

  • Unemployment allowances: This allowance was introduced in 2005 for registered employees. This scheme was applicable to people who have been insured for three or more than three years. They can be rendered unemployed due to a variety of factors like shutting down of their workplace or cutting down in the number of employees. Under this allowance, an employee is entitled to allowance which is approximately 50% of the wages and this is valid for two years. During this period, medical benefits are also extended to the insured person and his family. He/she can avail this facility ESI registered dispensary or hospital. Apart from these benefits, employees can also opt for vocational training and courses to enhance their skills. The fee of the course and the cost of travelling is borne by the corporation.
  • Dependent’s benefits: These benefits are extended and distributed evenly amongst the dependents. If an employee dies/gets injured at work, then the people dependent on him are entitled to this benefit. Around 90% of the employee’s wage is paid to the dependant on a monthly basis.
  • Disablement benefits: Under this, two types of benefits are extended: temporary disablement benefit and permanent disablement benefit. Temporary disablement benefit: around 90% of the employee’s wages are paid as long as the disability continues. Permanent Disablement benefit: the payment is made on a monthly basis and it depends on the casualty caused and inability to earn a living. The employee is entitled to 90% of the wages once the disability has been certified by the medical board.
  • Maternity benefits: Maternity benefits are extended for a period of three months. These benefits can be extended for another month under special circumstances. Amount paid is 100% of the average daily wages of the female employee.
  • Sickness benefits: These benefits are extended for a maximum of 91 days in a year. Employees are eligible for 70% of their wages during the sickness period. The employee needs to fulfill certain conditions to be eligible for this benefit. There are different provisions for employees who are suffering from chronic diseases. They can claim up to 80% of the wages for up to 2 years.
  • Medical benefits: As soon as the employee is registered with ESIC, he/she is entitled to medical benefits. These medical benefits are extended to the insured person and his family. There is no upper limit on the expenditure for the treatment of the sick. Even the retired/disabled insured person can avail the medical benefits extended by the ESIC at a minimum sum of Rs. 120.
  • Other benefits: Other benefits include funeral expenses and confinement expenses. For funeral expenses, an approximate amount of Rs. 10,000 is extended to the dependants for the funeral rites. Confinement benefits are extended to the insured women or the insured person’s wife if she delivers at a place where there is no ESI affiliated medical facility available.

Documents Required for the registration process:

A list of documents required for the registration process is mentioned below. If registering via offline means, then it is necessary that you are carrying at least two copy copies for all the documents mentioned below.

  • Address proof of the director/partner/proprietor of the company
  • Document showcasing the registration of the company
  • Employee list of the organization
  • PAN card of the employer, employees and the company
  • Salary details of all the employees associated with the employees
  • Details of the partners, directors and shareholders
  • Attendance roll of the employees
  • A cancelled cheque issued by the company’s bank account

Employer’s and Employee’s Registration:

The employer’s registration can be done on the ESIC portal at www.esic.in. this portal is only compatible either with Mozilla Firefox or with Internet Explorer.

  • Visit the ESIC portal and select ‘Click here to login

  • After selecting the link for logging in, another window will be displayed asking for the login credentials. Instead of putting in logging in credentials, select ‘Sign up’

  • After selecting ‘Sign up’, the following window can be seen

  • Fill all the details mentioned in the form. All the fields marked with an asterisk (*) are to be filled compulsorily. Fill in the employer’s name, company’s name, state, region, and email. Click on the check box to complete the form
  • After filling all the details, click on ‘submit’
  • Once you have submitted the details, you need to check your email. You will receive an email with your username and password from the ESIC Insurance team
  • After you have received your login credentials, go back to the login page and put in your credentials
  • Once you have logged in your account, you will see an option of ‘New employer registration’
  • Select ‘New Employer Registration’ and you will be taken further into the process. You will be asked to select the unit type from the drop-down menu and select ‘submit’
  • After clicking ‘Submit’, on the following page you will be asked to fill in the name of the unit, complete address of the estate/factory along with the state, district, pin code, and details of the police station
  • At the end of this page, you will see five options: ‘previous’ if you want to go back to the unit page, ‘save’ to save all the data, ‘reset’ if you want to re-enter all the details, ‘cancel’ to exit the page, and ‘next’ to proceed with the application
  • Once you click on ‘next’, you will be taken to fill the remaining ‘Employer Registration form’. You will need to fill in your PAN details, type of license, date of commencement and nature of your business
  • Once you are done filing information in the displayed form, click on ‘next’ to view the remaining form
  • Fill in the fields displayed from 11 to 13 which include the details of the owner, nature of ownership

  • After you have filled in all the details under this section, click ‘next’ to proceed to the last section of the employer form.

  • In section 16 of the form, the employer will have to put in information about the number of employees working. You will have to segregate employees under various categories based on gender and the income drawn. After furnishing all the information, click on ‘save’ to save all the statistics
  • Section 19 is the ‘Employee Declaration Form’. In this form, the employer will have to submit all the details regarding the employees. You will have to click on the link provided against section 19 to fill in the details. Once selected, a window similar to the one mentioned below will be displayed on your computer screens
  • If the employee is already insured/registered, just enter the insurance number and the employee’s date of joining. If the employee is not registered, then select ‘no’ and register the employee by following the steps mentioned below
  • Once you have selected ‘no’ under ‘Is I.P. already registered’, you need to click on continue to access the ‘Employee Registration form’
  • Fill in all the information and scroll down to see the full form. Fields marked with an asterisk (*) needs to be filled mandatorily. Under section 13, nominee details can also be filled
  • At the end of the form, you need to check the declaration and submit the form. After submitting the form, you will be taken back to the Employer’s registration form
  • Fill in the remaining of the employer registration form after registering the employees. Click on the declaration box. You will see in the end, the amount which needs to be paid to complete the registration process. To go to the payment portal, click on ‘submit
  • You will see a pop-up screen with a hyperlink to the payment portal. Click on ‘Pay initial contribution’. Amount to be paid along with the mode of payment will be displayed. You will have to select the online mode and click on ‘submit
  • A screen similar to the one mentioned below will be displayed. It is advisable that you note down the challan number mentioned for future communication
  • Click on ‘continue’ to pay through the online portal. You will be taken to the ‘SBI Multi-option’ payment system. The payment will be processed via netbanking. You can either choose to pay via SBI net banking portal or some other bank
  • Once the registration process is complete, you will receive registration confirmation on your registered email address which is considered as a valid proof under the ESI Act.

Pehchan card:

Once the employee is registered, he/she is provided with a ‘Temporary Identification Certificate’ which is valid for a period of 3 months from the date of issuance. Within this period, the insured person has to visit the nearest branch office to get the ‘Pehchaan card’. You will need some documents to apply for the card. Documents required are:

  • Temporary Identification Certificate (TIC)
  • Family photo

These documents should be attested by your employer. At the branch office, you will have to submit the documents. Your photograph will be taken for the card along with fingerprints of you and your family members. Two sets of Pehchan card will be delivered within 2 weeks from the completion of the process. Two sets of the card are issued to ensure the hassle-free process of availing medical benefits from the prescribed dispensary for the insured person and the immediate family. One card is for the employee and the other is for the dependent family. And in cases of emergency, the insured person can avail medical benefits from any clinic or hospital but the insured person should be carrying the Pehchan card.

If you have lost your Pehchan card before its expiry, you can get a duplicate card from the concerned branch office at a minimum amount of Rs. 25.

This is how a typical ‘Pehchan card’ looks like:

The Pehchan card will always consist of your Insurance number, the name of the Insured person along with the date of birth, residential address, family photograph, micro line, and UV text.

CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.