Table of Contents
During a time, when the industry was still in its growing stage, the people of India was still heavily dependent on a large collection of imported goods and services. These goods and services were given by either the developed or developing parts of the world. So, India being the self-dependent country it is, started developing the working class sector so assure that manufacturing and labor jobs remained in the country.
A labour force was developing in the country, dedicated to assure that industry in India starts to grow and thrive. To assure that these workers were preserved in terms of health and finances, the Parliament executed the Employees’ State Insurance Act, 1948 (ESI Act). It was the first major legislation that was meant to store social security for workers. The ESI Act encloses health related situations which workers are open to on a regular basis. This could consist any type of sickness, temporary or permanent disability, maternity, diseases contracted from a workplace, death due to employment, and any type of injury that results in the loss of wages or earning capacity. The ESIC Act performs as a financial safety net for workers against these diseases.
|Employee’s contribution rate||0.75% of the total wage (in effect from 1 July 2019)|
|Employer’s contribution rate||3.25% of the total wage paid to the employee’s|
|Periods for contribution||
|Periods for Cash benefit||
How to Register for ESIC
Following are the steps you will have to follow to register for ESIC:
- Click on this link .
- A new page will open where you will have to click on ‘Employer Login’.
- Below, click on ‘Common Registration for ESIC’.
- Enter the accurate details and submit them along with the necessary documents. If all the details are correct, your registration for ESIC will be successful.
ESIC Login Steps
- Click on the link https://www.esic.in/.
- A new page will open where you will have to click on ‘Employee/Insured Login’.
- Enter your login id, password, and the captcha.
This scheme has also been made expanded to hotels, shops, cinemas and preview theatres, restaurants, newspaper establishments, and road-motor transport undertakings. This scheme has also been widened to the Private Educational and Medical institutions that have employed 10 or more people. This is admissible in certain states and union territories only.
This scheme has been executed in stages in every state in India except Arunachal Pradesh and Manipur. The scheme has also been approved in all union territories except for Daman and Diu, Dadra and Nagar, and Lakshadweep Islands.
The ESI scheme has been informed in a total of 325 complete districts out of a total of 393 districts. Out of these notified districts, 89 districts executed the scheme partly.
|Coverage (as on 31 March 2016)||Particulars|
|No of Employees||2.46 crore|
|No. of Insured Person Family Members||3.39 crore|
|Total No. of Beneficiaries||13.16 crore|
|No. of Employers, etc.||14.82 lakh|
|No. of Insured Women||61.63 lakh|
Who are Eligible for ESI?
To come under benefits provided by the Employee State Insurance Corporation (ESIC), an individual should adhere to certain criteria that has been set by the committee. The ESI scheme is suitable to
- An individual who is worked in a non-seasonal factory that has more than 10 workers. This criteria applies under Section 2 (12) of the Act.
- With effect from 1 January 2017, the wage limit of an employee is set at Rs.21,000 per month for him/her to come under the coverage of the ESI scheme.
Guidelines for Employers to Register Their Establishment for ESIC
Under section 2A of the Act, it is a statutory responsibility of an employer to register their establishment for ESIC for the enhancement of their employees. The following steps show how to register a factory/establishment of this scheme:
- Visit the official portal at www.esic.in
- Register by creating an ESIC account.
- Within 15 days of applying, complete the sign-up process by providing the name of the factory/establishment, name and address of the principal employer, bank account number, PAN card details, insights of power consumption in case of factories, state and region of the establishment, and e-mail address.
- The system would send a registration ID and password to the mail ID provided, automatically.
- Using the registration ID and password, login into www.esic.in
- After successful registration, a unique 17-digit code will be generated in the name of the company. After receiving this unique code, the establishment will now be able to start ESI filings.
- The said establishment must intimate the addition of employees to ESI Corporation. An employee is given insurance of ESIC benefits as soon as they join their respective job in an insured establishment. But they need to provide their personal and family details along with their latest photographs to receive their ESI card.
To create an ESIC account:
The following documents are required when registering a company or establishment with ESIC:
- Certificate of Registration (in case of a private limited company) of the company or establishment
- License or a registration certificate which can be obtained under the Shops and Establishment Act or the Factories Act
- Certificate of Registration for every entity and for the commencement of production of factories
- Detailed list of employees along with their monthly compensation
- List of partners, shareholders, and directors of the company or establishment
- The company’s bank statements along with sufficient evidence about the commencement of operations
- Address proof and PAN Card of the business establishment or company
To receive ESI returns in ESIC account:
- Register of attendance
- Inspection book
- Wage/salary register
- Register of occurrence of any occupational hazard
- Monthly challans
Mistakes to Avoid
- The insured employee must not involve ineligible persons into his or her ESIC scheme to make use of the benefits.
- ESIC or Pehchan card must not be tampered with or damaged in any way.
- The card is your property and must not be given to anyone else as it is a punishable offence.
- An insured employee must not undertake cheating of any kind to claim medical support.
- An insured employee must not cheat the authority by producing unreal medical certificates. Detection of the same shall reflect punishment.
- The forms for ESIC account are available for free in the branch offices of ESI. Avoid paying imposters for this procedure.
- An insured employee must report the birth/death of dependents by adding/deleting family members, respectively.
Redressal of Public Grievances
A Public Grievances Redressal System has been set up by the ESI Corporation to aid in clearing out any inquest or issues that an employee might face. The following helplines have been made to cater to the workers and employees under the ESI scheme. The numbers are toll-free and can be called at any time of the day.
|Name of the Region||Toll-Free Helpline|
|Andhra Pradesh RO*, Hyderabad||1800-425-2358|
|Bihar RO, Patna||1800-345-6190|
|Assam RO, Guwahati||1800-345-3627|
|Goa RO, Panji||1800-233-0132|
|Chhattisgarh RO, Raipur||1800-233-5172|
|Gujarat RO, Ahmedabad||1800-233-0424|
|Haryana RO, Faridabad||RO, Faridabad||1800-180-1475|
|Jammu & Kashmir RO, Jammu||1800-180-7029|
|Himachal Pradesh RO, Baddi||1800-180-2862|
|Odisha RO, Bhubaneswar||1800-345-6712|
|Jharkhand RO, Ranchi||1800-345-6532|
|Madhya Pradesh RO, Indore||1800-233-4414|
|Tamil Nadu||RO, Chennai||1800-425-7080|
|Uttarakhand RO, Dehradun||1800-180-4161|
|Uttar Pradesh RO, Kanpur||RO, Kanpur||1800-180-5127|
|Maharashtra RO, Mumbai||RO, Mumbai||1800-209-4599|
|Puducherry RO, Puducherry||1800-425-7642|
|Punjab SRO, Ludhiana||1800-180-0026|
|West Bengal||RO, Kolkata||1800-345-4454|
*Note: RO-Regional Office, SRO-Sub-Regional Office
An employee or worker can even contact the ESI Corporation by sending a mail to the following address:
Website: www.esic.nic.in, www.esic.in
Toll Free Helpline No.:1800-11-2526/1800-11-3839 (for medical inquests)
When is ESI registration required?
When a company employs 10 or more employees, it is compulsory for that company or any other organization to register with the ESIC. An employee who gets less than Rs.21,000 per month gives 1.75% of his/her salary towards the ESI where as the employer pays 4.75% towards the ESI making a gross of 6.5%. The company or establishment can apply for an ESI registration within 15 days from the time the ESI Act becomes admissible to that company or establishment.
Importance of ESIC Account
Employee State Insurance Corporation (ESIC) Scheme has been developed to provide safety in the form of financial protection to an employee for any health-related issues. ESIC features include maternity benefits, medical benefits, disability benefits, and so on.
Employee State Insurance Corporation Scheme is based on the first legislation passed by the Parliament, concentrating on the advancement and social security of all workers named Employees’ State Insurance Act, 1948. This Act confirms the health-related problems an employee is faced daily.
Benefits of ESIC
ESIC includes six primary social securities, along with other extended benefits, which are mainly need-based. An amazing characteristic of this scheme is that it does not make any difference when it comes to giving financial support to an employee, even though the percentage of contribution an employee provides is kept fixed. It is dependent on his/her work wages. An ESIC account, thus, offers the following social securities:
An insured employee and his family members start to get total medical benefits from the day he/she begins an insurable job. The ESIC insurance is also admissible for insured retired persons and permanently disabled employees along with their wife/husband for a token premium amount of Rs. 120 which is paid yearly.
This ESIC benefit assures an amount which is 70% of the daily average wage earned by an employee to be distributed to them during a medical leave for a maximum of 91 days in a year. To get this benefit, the employee have to serve his employer for 78 days in a half-yearly contribution period. Under this category also comes the Extended Sickness Benefits, which is helpful in supporting the medical expenses for deadly and long-term diseases at an increased rate of 80% of the daily wage average.
This benefit offers an assured 100% of the average wage for twenty-six weeks of maternity leave from the time of labour, and it can be additionally extended for a month. The employee have to give for 70 days in the previous two contributions. It also offers 6 weeks of benefits in the case of miscarriages and 12 weeks for adoption cases.
This allowance comes under the Rajiv Gandhi Shramik Kalyan Yojana, that offers financial support to an insured person who has become jobless due to situations like the closing down of the company, permanent invalidity, retrenchment, etc. if he/she has employed an insurable job for three years. Under this benefit, the insured employee having an ESIC account will get medical assistance from ESI hospitals or dispensaries, where the allowance equals 50% of wages for a time period of up to two years. ESIC also assures the expenses of travelling for vocational training.
The disablement benefit encloses financial support for both permanent as well as temporary disability of an insured employee. 90% of the wage earned is payable to the person if he suffers any impairment because of an job related danger; also the same amount is also admissible for the person’s family or dependent in the form of Dependent’s Benefit, in the situation of the death of the insured employee.
If an employee holds an ESIC account, they will also be provided with extra benefits, like:
- Funeral Expenses: The dependents of an insured employee are provided an amount of Rs. 15,000 as funeral expenses.
- Confinement Expenses: In case an insured female employee or an insured person with a wife gets financial support of Rs. 5,000 if they are restricted in an area where medical aid under the ESI scheme is not properly available.
- Vocational Rehabilitation is given to permanently disabled employees having an ESIC account.
- Physical Rehabilitation is offered to employees suffering from physical impairment due to employement hazards.
- Old Age Medical Care covers superannuated insured employees.
Occupational Diseases Centres
There are four zonal centres and one IOHER (Institute of Occupational Health, Environment, and Research) centre set by ESI Corporation to provide medical support to employees and monitor the enhancement of their employment health.
|North Zone||IOHER, ESIC Hospital, Basaidarapur, New Delhi|
|South Zone||K.K. Nagar, Chennai|
|East Zone||Joka, Kolkata|
|West Zone||Andheri, Mumbai|
|Central Zone||Nandanagar, Indore|
Why Is It Important to Have an ESIC Account?
An employee may face various kinds of hazards while on the job. It is the duty of the nation, and of course, the employer to provide employees with benefits for their well-being as well as that of their dependents. In the wake of this, the State enacted the ESI Act. ESIC is a “multi-dimensional social security scheme” crafted to provide health benefits and medical assistance during a period of distress. And to hold an ESIC account, an employee needs to be working under an insurable establishment.
Budget Estimates for 2018-2019
Given below is the budget estimate provided by ESIC for the year 2018-19, along with income/expenditure of ESI Corporation for two consecutive years of 2016-17 and 2017-18:
|HEAD OF ACCOUNT||ACTUAL (2016-17) *IN CRORES||ACTUAL (2017-18) *IN CRORES||ESTIMATE FOR 2018-19 *IN CRORES|
|Fees, fines, and forfeitures||32.22||36.48||36.00|
|Rates, rents, and taxes||55.71||57.52||89.41|
|HEAD OF ACCOUNT||ACTUAL (2016-17) *IN CRORES||ACTUAL (2017-18) *IN CRORES||ESTIMATES FOR 2018-19 *IN CRORES|
|Contribution to Capital Construction Fund||136.62||200.77||209.00|
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