ESIC Registration
Employee State Insurance Corporation or ESIC is a self-financing social security and health insurance scheme which provides medical benefit, sickness benefit, maternity benefit, disablement benefit and various other benefits such as funeral expenses, free supply of physical aids etc. to the employees and their family. Units or Establishments that have 10 or more employees, drawing the wages up to Rs. 21,000/- (15000/- Before 1st January, 2017) a month are required to be registered for ESIC under the ESI Act 1948 and amendments made there under. The benefits provided by the scheme are funded from the contributions raised from covered employees and their employers at the fixed percentage of wages. At present, covered employees contribute 1.75% of the wages to the ESIC and covered employers contribute 4.75% of the wages, payable to their employees.
All Establishments and Factories employing more than 10 employees are required to mandatorily apply for ESI registration within 15 days of the ESI Act, 1948 becoming applicable to them.
Features
- Provides complete medical care to employees
- Includes employee's dependants also
- Mandatory for units with >10 employees
What are the Benefits of ESIC Registration?
The benefits of registering under this scheme are varied. Some of them are:
- Sickness benefits at the rate of 70% (in the form of salary), in case of any certified illness certified and which lasts for a maximum of 91 days in any year.
- Medical Benefits to an employee and his family members.
- Maternity Benefit to the women who are pregnant (paid leaves).
- If the death of the employee happens while on work – 90% of the salary is given to his dependents every month after the death of the employee.
- Same as above in case of disability of the employee.
- Funeral expenses.
- Old age care medical expenses.
