For a business owner, navigating the labour laws is as important as planning your business strategies. ESIC registration is not only crucial for compliance with the laws to avoid penalties but also to ensure that your employees get the social security benefits that the ESIC scheme has to offer. In this blog, we will thoroughly address the key questions such as what is ESIC, discuss ESIC eligibility criteria and more. By end of it, we hope to provide you the clarity on ESI registration process and the advantages of the scheme.
Now let’s look at the ESIC eligibility criteria in detail and find out who is eligible for ESIC registration.
The primary factors are the number of workers employed in your organisation/establishment and their gross wages/salary. If you have 10 or more employees (20 in some states) on your payroll, and they earn a gross monthly salary of or below ₹21,000 (₹25,000 for employees with disability), then you are obligated to register for ESIC. This holds good for a wide array of sectors, including factories, hotels and restaurants, road transport, education institutes, private medical facilities etc.
The salary cap mentioned above is also crucial determinant of the ESIC eligibility. This is to ensure that all the employees, regardless of their positions, can have access to the essential healthcare benefits.
Now let’s break down the contribution towards ESIC.
If your business meets these criteria, it is vital for you to not neglect the registration to prevent any legal repercussions.
Not sure about the regulations?
In the login window, select the ‘Sign Up’ option to create your account.
Enter information such as company name, employer’s name, region, contact details and confirm the establishment by checking the box before submitting the details.
Once you submit the details, you will receive your login credentials via the registered email ID.
Log in using the credentials received and click on the New Registration. Fill in select the type of unit (factory or shop/establishment). This will lead you to Employer Registration- Form 01.
Carefully fill in all the details including relevant PAN details, address, nature of business/category, license details, present employee strength etc.
Upload the necessary documents for ESI registration for employers (listed below) and submit the form.
Once the form is submitted, you will need to make an initial contribution of 4% of an employee’s gross salary, as mentioned above.
This brings us to the question how to generate ESIC number.
In the last step of ESI registration process, the system will automatically generate a 17-digit ESIC registration number after the successful payment completion. This will serve as your unique identification for all ESI-related transactions.
To finalise the ESI registration process, you will need to provide the following documents required for ESI registration for employer-
Now that we understand who is eligible for ESIC and the procedure for ESI registration, let’s discuss the benefits for both employers and employees under this scheme.
As a business owner, it is paramount to understand that ensuring ESIC registration is not just a measure for you to avoid legal penalties, but it’s also a crucial step in safeguarding your employees’ healthcare.
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