Employees’ State Insurance Corporation (ESIC) of India is an integrated social security system tailored to provide social protection to workers, immediate dependent or family, in the organized sector, in contingencies, such as, sickness, maternity and death or disablement due to an employment injury or occupational hazard. Employees’ state Insurance Corporation of India (ESIC), is a multidimensional social system tailored to provide socio-economic protection to worker population and immediate dependent or family covered under the scheme. Besides full medical care for self and dependents, that is admissible from day one of insurable employment, the insured persons are also entitled to a variety of case benefits in times of physical distress due to sickness, temporary or permanent disablement etc. resulting in loss of earning capacity, the confinement in respect of insured women, dependents of insured persons who die in industrial accidents or because of employment injury or occupational hazard are entitled to a monthly pension called the dependents benefit.
ESIC Registration is mandatory for all Organizations whose total employees ( Permanent + Contract) is 10 or more. ESIC provides medical cum social benefits to the registered members. Every employer registered under the ESIC must file their monthly return of contributions of employer and employees along with the payment. Ourtaxpartner.com helps the employers to get under ESIC Act. We here also provide the service of ESI Return filing.
The ESI Act is applicable to all non-seasonal factories employing 10 or more persons [Section -1(2) read with Section 2(12) and Section 2(19A)]. The State Governments have extended the coverage under Section 1(5) of the Act to Shops, Hotel, Restaurants, Cinema including preview theatres, Road-motor transport undertakings, Newspaper establishments, Private Medical Institutions, Educational Institutions and to contract and casual employees of Municipal Corporation/Municipal Bodies employing 10 or more persons in the certain States/UTs, where State Govt. is the appropriate Govt.
The Central Govt. has extended the coverage under Section 1(5) to Shops, Hotels, Restaurants, Road Motor Transport establishments, Cinema including preview theatres, Newspaper establishments, establishment engaged in Insurance Business, Non-Banking Financial Companies, Port Trust, Airport Authorities, Warehousing establishments employing 20 or more Persons, where Central Govt. is the appropriate Govt.
The existing wage limit for coverage under the Act effective from 01.01.2017 is Rs.21,000/- per month (Rs.25,000/- per month in the case of Persons with Disability).
*Note: However the threshold for Coverage of establishments is still 20 Employees in Maharashtra and Chandigarh.
ESI Scheme, like most of the Social Security Schemes the world over, is a self financing health insurance scheme. Contributions are raised from covered employees and their employers as a fixed percentage of wages. As of now, covered employees contribute 0.75% of the wages, whereas, the employers contribute 3.25% of the wages, payable to their employees. Employees earning upto Rs.176/- a day are exempted from payment of their share of contribution. The State Governments, as per provisions of the Act, contribute 1/8th of the expenditure of medical benefit within a per capita ceiling of Rs. 1500/- per Insured Person per annum. Any additional expenditure incurred by the State Governments, over and above the ceiling and not falling within the shareable pool, is borne by the State Governments concerned.
The rates are revised from time to time. Currently, the employee’s contribution rate (w.e.f. 01.07.2019) is 0.75% of the wages and that of employer’s is 3.25% of the wages paid/payable in respect of the employees in every wage period.
Employees in receipt of a daily average wage upto Rs.137/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
An employer is liable to pay his contribution in respect of every employee and deduct employees contribution from wages bill and shall pay these contributions at the above specified rates to the Corporation within 15 days of the last day of the Calendar month in which the contributions fall due.
The Corporation has authorized designated branches of the State Bank of India and some other banks to receive the payments on its behalf.
There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under.
ESIC Registration Only
Inclusive of GST
ESIC & EPF Registrations
Inclusive of GST
ESIC Registration Only
Employee addition upto 25 Nos.
Inclusive of GST
ESIC Return only
For One Month filing
Employees upto 50 Nos.
Inclusive of GST
ESIC & EPF Return only
For One Month filing
Employees upto 50 Nos.
Inclusive of GST
ESIC Return only
For 12 Month / One Year filing
Employees upto 50 Nos.
Inclusive of GST
The Employees’ State Insurance Corporation (ESIC) is a self-financing social security and health insurance scheme for Indian workers. Registration under ESIC is mandatory for entities employing workers with salary up to a certain limit. This blog explores the numerous benefits of ESIC registration for both employers and employees.
Registered employees and their family members are entitled to full medical care from the day of entering insurable employment. This includes a range of medical services from primary to tertiary healthcare.
ESIC provides sickness benefits at 70% of the average daily wages for a maximum of 91 days in two consecutive benefit periods.
Women employees are entitled to maternity benefits for a period of 26 weeks, which can be extended on medical advice. This ensures financial stability during maternity leave.
In case of disability caused by employment injury or occupational hazard, employees are entitled to a monthly payment for the period of disability.
In the unfortunate event of an employee’s death due to employment injury, dependants receive a monthly pension known as dependants’ benefit.
Under the Rajiv Gandhi Shramik Kalyan Yojana, unemployed insured persons are entitled to an unemployment allowance after the loss of a job.
ESIC provides an amount towards funeral expenses of the deceased employee.
For insured persons who retire or attain the age of superannuation, ESIC provides medical care services.
Employers benefit from ESIC registration by reduced financial liability in cases of sickness, maternity, or employment injury to their employees. It also enhances employee morale and productivity.
Ourtaxpartner.com is one of the leading consultant who assist the employers to get register under ESIC Act. We here provide registration assistance, return filing and advisory services regarding the ESIC. We service clients in most of the cities in India like Mumbai, Delhi, Bangalore, Hyderabad, Ahmedabad, Chennai, Kolkata, Surat, Pune, Jaipur, Lucknow, Kanpur, Nagpur, Indore, Thane, Bhopal, Visakhapatnam, Pimpri-Chinchwad, Patna, Vadodara, Ghaziabad, Ludhiana, Agra, Nashik, Ranchi, Faridabad, Meerut, Rajkot, Kalyan-Dombivli, Vasai-Virar, Varanasi, Srinagar, Aurangabad, Dhanbad, Amritsar, Navi Mumbai, Allahabad, Howrah. Gwalior, Jabalpur, Coimbatore, Vijayawada, Jodhpur, Madurai, Raipur, Kota, Chandigarh, Guwahati, Solapur, Hubli–Dharwad, Mysore, Tiruchirappalli, Bareilly, Aligarh, Tiruppur, Gurgaon, Moradabad, Jalandhar, Bhubaneswar, Salem, Warangal, Mira-Bhayandar, Jalgaon, Guntur, Thiruvananthapuram, Bhiwandi, Saharanpur, Gorakhpur, Bikaner, Amravati, Noida, Jamshedpur, Bhilai, Digital Signature Certificate in Mumbai, Cuttack, Firozabad, Kochi, Nellore, Bhavnagar, Dehradun, Durgapur, Asansol, Rourkela, Nanded, Kolhapur, Ajmer, Akola, Gulbarga, Jamnagar, Ujjain, Loni, Siliguri, Jhansi, Ulhasnagar, Jammu, Mangalore, Erode, Belgaum, Kurnool, Ambattur, Rajahmundry, Tirunelveli, Kozhikode, Kollam, Thrissur, Malappuram, Kannur, Palakkad, Kottayam etc.