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Employees State Insurance (ESI) is a self-financing social security and health insurance scheme for Indian workers. The fund is managed by the Employees State Insurance Corporation (ESIC) according to rules and regulations stipulated in the ESI Act 1948. ESIC is a Statutory Body and Administrative Ministry under "Ministry of Labour and Employment", Government of India. Under the scheme, the Employer and worker also are required to contribute to a social insurance fund, which is to be utilized for conferring benefits on them.
The object of the Act is to secure sickness, maternity, disablement, and medical benefits to employees of factories and establishments and dependents benefits to the dependents of such employees. It provides financial assistance to compensate for the loss of his/her wages during the period of his abstention from work due to sickness, maternity, and employment injury. The scheme provides medical care to his/her family members also.
The ESI Act 1948 applies to;
# Non – seasonal Factories using power in and employing 10 or More persons
# Non – seasonal and non- power using factories and establishments employing 20 or more persons
# Employees of the Factories and Establishments in receipt of wages not exceeding Rs.21,000 /- Per month are covered under this Act.
The incentive to employers in the Private Sector for providing regular employment to the persons with disability:
# Minimum wage limit for Physically Disabled Persons for availing ESIC Benefits are 25,000/-.
# Employers' contribution is paid by the Central Government for 3 years.
The scheme is primarily funded by contribution raised from Insured Employees and their employers
Contribution towards ESIC;
1. Employee's Contribution is 0.75% of the Wages
2. Employer's Contribution is 3.25% of the Wages
...TOTAL CONTRIBUTION is 4.5 %
This rate is applicable from 1st July 2019 onwards
The PayHR Excel CTC calculator with ESIC setting will help you in designing new and revised CTC structure with ESIC contributions. Download NOW: PayHR CTC Calculator
ESIC payment is an online process.
# Login to ESIC website, portal link: ESIC Employer Login
# Before making an online payment, the excel template file with the list of an employee covered under ESIC, along with wages paid and payable days should be uploaded in excel file provided by ESIC department. Upload this file under 'File Monthly Contributions' page
# Next goto 'Generate Challan' tab and select the month for which the challan to generate. Enter 'Total Amount to be paid(Employer and employee contribution amount) and then click on submit to make an online payment.
# On successful payment of the challan, the status of your payment will be displayed on the screen.
To know more about online ESIC payment process, refer : ESIC Payment Manual
There is no separate process for filing ESIC return. The steps followed for making payment, in which the excel details with a list of employees covered under ESIC, along with wages paid during the month and payable days is the actual filing of ESIC return in an excel template provided by the ESIC Department. So basically first file the return online using an excel template, based on which payment challan is generated online for instant payment.
To know more about ESIC filing, refer : ESIC User Manual
The ESIC registration process is online and is very much simplified. Any eligible employer with a required document in softcopies can get the registration done within 1/2 hour of time with their DSC. There is no requirement for submission of any hard copies with the ESIC department, It's now a paperless process. Let see below how to get the registration done by yourself;
•Portal for getting ESIC registration:
To get registration for ESIC, go to the website Shramsuvidha portal. This portal was built for 'Easy of Doing Business', where you get multiple compliance registrations. Even for PF, the registration is done from here. There is no payment or fees to be paid while getting the registration. First, you will have to create a Shramsuvudha profile login. Link for same is, click here:Shramsuvidha Portal link
•Login to ESIC registration page:
a) Using the credential generated as above step, login to the Shramsuvidha portal, Shramsuvidha Login link
b) Select option "Registration ---> Registration For EPFO-ESIC"
c) Click on button ---> "Apply for New Registration"
d) Select Act ----> "Employees' State Insurance Act, 1948" and click on 'Submit' button
•Fill up the field which is mandatory in all the steps and upload a copy of the below list documents. Finally using DSC token of an authorised person for ESIC, approve the ESIC Registration Form.
1) Copy of Companies PAN card,
2) Copy of Certificate of incorporation,
3) Copy of address proof - Electricity bill/Telephone Landline Bill
4) Copy of Director's PAN card and Aadhar Card Copy along with email id and mobile no,
5) Scanned image of Cancelled cheque of Establishment,
6) Copy of PT Registration Certificate/ PT EC certificate/ PF Code allotment(if any),
7) Copy of Shop and Establishment Certificate /GST Certificate,
8) Authorised person DSC token, this will be required during final stage of submisssion. Whithout DSC the registartion will remain incomplete.
•Once the required registration details is submitted, ESIC Code number is generated along with an email is send with employer portal login credential. For accessing the employer portal, use the following link: ESIC Employer website link
Note: With effect from 15th February' 2020, new Public & Private Limited Companies and One Person Company shall get registration number for EPFO & ESIC on MCA portal (www.mca.qov.in through Spice+ and AGILE-PRO eforms) only at the time of incorporation.
Code Number: On the receipt of Employers registration form, regional office allot a code number to the employer. Only one code number is allotted to factory/establishment even though functionally it may have more than 1 unit. Required to be indicated by the employer in all his correspondence with the Corporation. It is a 17 digit identification number allotted by the Regional Office.
Sub Code number: Employer is required to furnish necessary details online with the 'ESIC Employer portal' to get the allotment of sub-code, in case having main factory/ establishment at one place and branch office or sales office either within the same state or outside that state. This is again an online process wherein no physical or soft copies required by the employer. This also a 17 digit identification number allotted by the Regional Office to a sub-unit.
To be deemed as wages
Basic
HRA
Conveyance
Dearness allowance/ Spl All.
Medical allowance
City compensatory allowance.
Night Shift Allowance
Bonus – Other than statutory Bonus.
Other allowances like – night allowances, meal/food if paid,
Not to be deemed as wages
Any contribution paid by the employer to any pension fund or provident fund.
Any travelling allowance or value of any travelling concession.
Any Gratuity Payable on discharge.
Any sum paid to the person employed to the defray special expenses entailed on him by the nature of his employment
# “Contribution period” and “Benefit Period” are periods fixed for the purpose of paying contributions and deriving benefits under the Act.
# Contribution Period is from 01st April to 30th September and 01st October to 31st March
# Benefit Period :- 01st January to 30th June & 01st July to 31st December
# Benefit Period shall commence on expiry of 9 months from the date of employment
Once you login to the employer portal, you can enroll employees by filling a few applicable information. If an employee posses an old esic number, then the employer can ask for the same and continue with the same ESIC number instead of generating a new ESIC number. By continue old esic number, employees will enjoy service continuity by benefiting ESIC medical facilities.
ESIC has clarified and approved certain steps to be followed by the employers to register their employees within 10 days from the date of appointment. If employers fail to enroll within 10 days, then the employer has to submit the necessary documents for the verification of the appointment date of the employee within the stipulated time period the date of registration of employee will be deemed as the date of appointment and no modification allowed later on.
Also as per latest amendment of July 2020, mandatory linking of mobile number and the bank account is compulsory while enrollment of employees with ESIC portal.
Click on the buttons inside the tab menu:..........Last updated on 30/08/2020