An Introduction to the ESIC Registration Scheme
The government-operated organization, Employees State Insurance Corporation (ESIC), works to manage the Employees’ State Insurance Scheme. The said Scheme of the government of India provides medical and financial assistance to the employees registered through ESIC registration. In case the employee is unable to work due to sickness, employment injuries, or maternity, ESI Scheme comes into force.
Critical Components of the ESIC Registration Scheme
Scheme:
The ESI Scheme is governed by the Employees’ State Insurance Act of 1948. Following is a breakdown of the critical components of the Scheme:
Protection of Employment Injury: It provides coverage to employees who sustain disabilities or injuries occurred during the work. This can includes occupational diseases, accidents or other work related health conditions.
Scope of Coverage: The scheme covers individuals who are enrolled in the program. Its mandatory for employers to register their employees for the scheme or employees can also choose to participate voluntarily for the same.
Maternity Benefits: It provides support to female employees during pregnancy and childbirth. Maternity benefits can include paid leave during the maternity period in helping them get financial assistance.
Sickness Benefits: In case of Non-work related sickness or medical conditions, the scheme provides financial assistance to employees to help them cope up with the loss of income during their illness.
Replacing Loss of Salary: One of the critical objectives of the Scheme is to replace a portion of the employee’s lost salary or income during periods of disability, sickness, or maternity leave. This financial assistance helps individuals and their families maintain a basic living standard during these challenging times.
Medical Care and other Benefits: This scheme also provides access to medical care and other benefits to covered employees. Medical expenses related to injuries, sickness, permanent disability/temporary disablement and maternity may be covered under the scheme to ensure that employees can receive necessary treatments without significant financial burden.
The primary goal of the ESI scheme is to provide a safety net for employees and their families, ensuring their well-being and financial stability during times of need.
History of ESIC Registration Scheme
Prime Minister Pandit Jawahar Lal Nehru inaugurated the Employees’ State Insurance Corporation Scheme in Kanpur on 24th February 1952. The venue was the Brijender Swarup Park.The Scheme was then launched in Delhi, and 1,20,000 employees were initially covered in both centers. The Scheme honored our first Prime Minister as the first insured person.
How ESIC works?
a.) Applicability:-
The ESI social security scheme applies to establishments or entities that employ ten or more employees. The Scheme covers various sectors and industries including hotels, restaurants, cinemas, newspaper establishments, private educational and medical institutions.
The number of employees required for subscribing to the ESI scheme can differentiate from state to state. The state government has the authority to determine the minimum threshold for coverage. For Instance, it could be ten or more employees whereas in other state it could be twenty or more employees. So, it is essential to refer to the guidelines and specific rules made by the state government where the entity is located to determine the rate of contribution towards the precise applicability criteria.
Also, the ESI registration provides cash benefits, medical care and various other facilities to cover the employees and their dependents. The employee and employer both contribute to the ESIC(Employee’s State Insurance Corporation), a statutory body under the Ministry of Labour and Employment, Government of India.
b.) Wage Limit
Individuals with daily wage/average wage of Rs. 176/- or or below are exempted to ESI schemes from their wages. Only the principal employer share of contribution is paid for these employees. This exemption relieves lower wage employees from contributing towards ESI scheme while still providing them access to health insurance scheme and benefits. It is important to note that the specific thresholds and exemptions can vary between states and can be subject to updates or changes by the relevant authorities.
ESIC Registration process
Step 1: Log in to ESIC Portal
The employer needs to register himself on the ESIC portal.
An employer can register by clicking the ‘Sign Up’ button on the ESIC portal under the ‘Employer Login option on the home screen.
The employers must fill in the details after clicking the ‘Sign up’ button and submitting the form.
Step 2: Confirmation Mail
After submitting the form for sign-up to the portal, the employer will obtain a confirmation mail sent to the registered mail ID & mobile number entered at the time of sign-up. For registering as an employer & employee under the ESIC scheme, the email will contain the username & password details.
Step 3: Employer Registration Form-1
Next, along with the username and password received in the mail, log in to the ESIC portal. This will pass on to the page having the option of ‘Tab – New Employer Registration.’ Click It.
Next, select the ‘Type of Unit’ from the drop-down list and click the ‘Submit’ button. The ‘Employer Registration – Form 1’ will come out & the employer requires filling in the details.
The Employer Registration Form-1 concedes details about the employer‘s unit, details of the employer, and employees. He must click the ‘Submit’ button once; the employer fills out the complete form.
Step 4: Payment for Registration
The ‘Payment of Advance Contribution’ page will open when the employer submits the Registration Form-1, where the employer needs to fill in the amount to be paid.. The employer will need to pay the advance contribution for 6 months.
Step 5: Registration Letter
The ESIC department sends the system-generated Registration Letter (C-11) to the employer upon successful payment of the six months advance contribution, which contains a 17-digit Registration Number.
The Registration Letter (C-11) is a valid proof of employer registration.
Conclusion
The ESIC registration plays a vital role in providing social security benefits to the insured workers across the country, This scheme offers a range of benefits which includes cash, medical, maternity, disablement benefits and many more. It also ensures that insured persons have access to quality medical treatment and facilities through its ESIC hospitals and medical centers.
The ESIC registration card or e-pehchan card serves as a unique identification for insured individuals enabling them to avail benefits. In India it has made significant strides in providing social security and medical benefits to the working population. The ESIC ensures the well-being of injured workers and their dependents, contributing to a healthier and more secure workforce.
