EMPLOYEE STATE INSURANCE (ESI) REGISTRATION

 

Basics

 

The Employees' State Insurance (ESI) Scheme is one of the famous schemes amid employees engaged in various economic sectors in entire India. The ESI scheme is administered and regulated by Employee State Insurance Corporation (ESIC), as per the rules and regulations of the Indian ESI Act of 1948.

 

All Establishments and Factories employing more than 10 employees are required to mandatorily apply for ESI registration within 15 days as per the ESI Act, 1948 once it is applicable.

 

ESIC is a self-financing social security and health insurance scheme which provides medical benefit, maternity benefit, disablement benefit and various other benefits etc. to the employees and their family.

 

Establishments having 10 or more employees, paying the wages of upto Rs.15,000 per month are required to be registered for ESIC under the ESI Act 1948. The benefits provided by the scheme from contributions collected from covered employees and their employers at the specified percentage of wages.

 

As per Current rates, covered employees contribute 1.75% of the wages to the ESIC and covered employers contribute 4.75% of the wages, payable to their employees. The state government also contribute 1/8th share cost of medical benefit.

 

Advantages

 

1. Savings platform that helps employees to save a fraction of their salary every month that can be used for future life.

2. Provides complete medical benefits and facilities to employees.

3. Medical and other Benefits given to employee’s dependents also

4. Sickness benefits in form of salary at the rate of 70%, in case of any certified sickness lasting for a maximum of 91 days in any year.

5. Maternity benefit of paid leave of 3 months to pregnant woman employees.

6. Aid for Disability to work paid at the rate of 90% of the monthly salary of the employee.

7. In case of death of an employee caused by any occupational hazard, ESIC pays 90% of employee salary to dependents.

8. Other benefits like funeral expenses compensation, physical rehabilitation, old age medical care, etc.