What is ESI Scheme and its Benefits

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.

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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.

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Contribution Rates

Contribution Period

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.

ESI Coverage

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.

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.

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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.

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Documents Required

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

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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.

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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.