New to ESIC? How Do I Register My Company and What Should I Know?

Dear Sir,

I am new to this, so please provide me with the following details:
- What is ESIC?
- How do we register our company in this?
- What are the main points that are most important to know?
- Which forms need to be filled out and submitted to the government?
- If I need any more details related to ESIC, where can I find the information?

Regards,
Sonu Kaushik

Overview of the Employees' State Insurance Act, 1948

The Employees' State Insurance Act, 1948, protects the interests of workers in contingencies such as sickness, maternity, temporary or permanent physical disablement, and death due to employment injury resulting in loss of wages or earning capacity. The Act also guarantees reasonably good medical care to workers and their immediate dependents.

The main purpose of the ESIC Act is to provide medical help, i.e., maternity and sickness benefits.

The Act is applicable to non-seasonal factories employing 10 or more persons. The scheme has been extended to shops, hotels, restaurants, cinemas including preview theaters, road-motor transport undertakings, and newspaper establishments employing 20 or more persons.

Thanks,

Malav Shah.

Understanding ESIC: Employee State Insurance Corporation

ESIC, or Employee State Insurance Corporation, established in 1948, provides various benefits to employees:

1. Medical Benefit
2. Death Benefit (Funeral Expenses)
3. Insurance (Death/Disablement)
4. Maternity Benefit
5. Cash Benefit
6. Coverage for 34 specified diseases

Employees should be given a Temporary Identity Card (TIC) so they can approach the ESI Office and obtain their ESI Card to avail themselves of the above-mentioned benefits.

Employee Contribution and Registration Requirements

Employee ESI can be deducted if their salary is under a certain threshold. For registration, if your organization has more than 7-10 employees, it is compulsory to register your company under ESIC.

- Employee Contribution: 1.75% of Gross Salary
- Employer Contribution: 4.75% of Gross Salary
- Total Contribution: 6.5% of Gross Salary

Contribution Deposit Process

Note: The total contribution amount (employee’s share and employer’s share) must be deposited with the authorized bank through a challan in the prescribed form in quadruplicate on or before the 20th of the month following the calendar month in which the wages fall due.

Regards,
Surmeet Kaur