ALL ABOUT ESI REGISTRATION
Established under the ESI Act, 1948, ESIC (Employees’ State Insurance Corporation) provides benefits to employees in the event of their sickness, death, disablement, injury, etc. The finance of this scheme comes from contributions from both employees and employers. Apart from employees, the family members of employees are also provided benefits under this Act. Any establishment that employs 10 or more employees is mandated by law for ESI Registration under this Act. The contribution of employers in this scheme is 4.75% and that of employees is 1.75%, thus making a total of 6.5%.
WHO REQUIRES ESIC REGISTRATION?
Online Esi Registration is mandatory for every factory and specified establishments who have 10 or more permanent employees and wages of such employees are less than Rs. 21,000/- per month.
HOW DOES THE ESI REGISTRATION SCHEME HELP EMPLOYEES?
The scheme provides full medical cover to the employee registered under the ESI Act, 1948 during the period of his incapacity, restoration of his health and working capacity.
It provides financial assistance to compensate for the loss of his/ her wages during the period of his absenteeism due to sickness, maternity and employment injury. This scheme provides medical claim to his/her family members also.
IS IT MANDATORY FOR THE EMPLOYER TO REGISTER UNDER THE SCHEME?
Yes, it is the statutory responsibility of the employer under Section 2A of the Act read with Regulation 10-B, to register their Factory/ Establishment under the ESI Act within 15 days from the date of its applicability to them.
Also Read: ESIC Return and other Annual Compliance
BENEFITS OF ESIC REGISTRATION
ESI Registration provides monetary and medical benefits to employees in case of sickness, maternity and employment injury and to make provisions for related matters.
Some of the benefits of ESI Registration are :
TAKE FREE ADVISOR CONSULTATION FROM ENTERSLICE