Employees' State Insurance - ESIC Registration

ESI, short for Employees' State Insurance Corporation, is a government agency in charge of the Employees' State Insurance (ESI) program. The initiative offers employees and their families medical and financial help. Assistance is offered when an employee cannot execute his job due to illness, workplace injury, or maternity.

The Objective of Employee State Insurance

The basic goal of the Government of India in launching the ESI scheme is to protect workers from certain health-related contingencies such as permanent or temporary disablement, sickness, and death due to occupational injury or disease, which impacts the worker's earning capacity or leads to income loss. This scheme enables employees to avoid financial hardship due to such sad events. Beneficiaries might also receive maternity benefits under the scheme.

The ESI program is a worker's insurance policy that provides medical treatment for the insured and their families, as well as a variety of monetary benefits in the event of a wage loss or disability. In addition, the system provides a pension known as a dependent benefit to the insured person's family members in the event of death or injury due to occupational dangers while at work.

ESI Act Full Form - Explained

The Employees' State Insurance Act 1948, often known as the ESI Act, was notified by Parliament and was the country's first important legislation on Social Security for workers after independence. The ESI Act of 1948 provides medical coverage and other essential advantages to workers and employees who work in factories, businesses, and organizations such as hotels, road transportation, cinemas, newspapers, educational or medical institutions, and shops that employ ten or more people.

The ESI scheme provides payments to both workers and their dependents in the event of an accident at work. Employees or workers in the above-mentioned groups who earn up to Rs. 21,000 for a month are eligible for this social security scheme under the ESI Act. The ESI Act attempts to safeguard people from starvation, deprivation, and social degradation during times of crisis.

Coverage Under Employees State Insurance Corporation

ESIS is available to the majority of the Indian population. Let us now look at what is covered by the Employee State Insurance Scheme: 

  • This system is available to employees of movies, newspaper companies, restaurants, restaurants, hotels, and shops.  
  • More than 3.49 crore people are eligible for the scheme. 
  • Furthermore, persons working in medical and private educational facilities with more than ten staff are eligible to register for this scheme.

Non-Coverage Under ESI Insurance

The ESIC system currently does not cover workers or employees earning more than Rs.21,000 per month, and the maximum income for people with disabilities is Rs.25,000 per month. Also, in Maharashtra and Chandigarh, the current coverage criteria are still 20 employees, rather than ten employees in other states or UTs.

Who is Eligible for the Employee State Insurance?

To apply for this Employee State Insurance Scheme, you must meet the following eligibility requirements: 

  • He or she should work in a non-seasonal company with a workforce of more than ten people. 
  • A month's salary should be Rs.21,000 for an employee. 

How to Register for ESIC?

If you own a business and want to register it with ESIC, here is a step-by-step instruction.

Step 1: Go to the official ESIC website and click "Sign Up."

Step 2: Complete the form on the next screen with accurate information and submit it.

Step 3: You will then receive a confirmation email with your login and password information on your registered email ID.

Step 4: Log in to the ESIC portal with your assigned username and password and select "New Employer Registration." Select a "Type of Unit" from the drop-down option before clicking "Submit."

Step 5: Complete the "Employer Registration Form 1" and submit it with all needed documentation. 

Step 6: You will be brought to a page titled "Payment of Advance Contribution," where you must input the amount for the six-month advance contribution and select the payment mechanism.

How to log in with ESIC?

To log in, you follow the steps that are mentioned below:

Step 1: Go to the Official Site. 

Step 2: A new page will open, and you must click on 'Employee/Insured Login.'

Step 3: Fill up your login id, password, and captcha.

Benefits of ESI

  • The beneficiary will receive 100% daily wages for up to 26 weeks, whereas miscarriage and adoption will receive 100% daily wages for up to six weeks and 12 weeks, respectively. 
  • If confinement happens where there is no healthcare under the ESIC program, the insured or dependents will be reimbursed for the confinement costs.  
  • During medical leave, the scheme provides financial flow. Employees might get 70% of their daily income for a maximum of 91 days. This service, however, is only available twice a year. 
  • If someone insured retires from the company beyond the age of 60, he or she will receive Rs.120 per year. 
  • The ESIC plan provides financial help to the insured's dependents in the event of illness. 
  • Under the ESIC program, the insured will receive 50% of their average monthly pay in the event of unemployment or permanent incapacity as a result of an injury. 
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