ESIC REGISTRATION

The Employee State Insurance (ESI) scheme operates under the ESI Act of 1948, a government initiative aimed at providing social security benefits to workers. The scheme is managed by the Employee State Insurance Corporation (ESIC). Employers are required to formally register their establishments with ESIC and submit employee details to include them in the program.

The ESI Act defines an establishment as any organized entity employing men or women, regardless of its physical location. This includes retail outlets, commercial shops, and other businesses. These establishments must enroll in the ESI scheme if they employ 10 or more workers (or 20 in certain states), with employees earning up to Rs. 21,000 per month (or Rs. 25,000 for individuals with disabilities).

As per the ESI Act, the following types of entities must register with ESIC if they employ the required number of workers:

• State Government-Associated Entities (Section 1(5)): Retail outlets, dining establishments, movie theatres, establishments related to road transportation, private healthcare facilities, private educational institutions, and casual workers employed by Municipal Corporations or Bodies.
• Central Government-Associated Entities: These include retail outlets, hotels, establishments related to road transportation, cinemas, newspaper organizations, insurance businesses, Non-Banking Financial Companies (NBFCs), port trusts, airport authorities, and warehousing.

To qualify for ESI registration, the following conditions apply:

• Employee count: Any establishment with more than 10 employees (20 or more for certain businesses) must register for ESI benefits.
• Employee benefits: Workers and their dependents across various industries and sectors can receive medical care through ESIC-run hospitals and dispensaries.
• Maternity benefits: Female employees earning less than Rs. 21,000 per month and individuals with disabilities earning less than Rs. 25,000 per month are eligible for maternity benefits, which include medical and cash benefits, as well as paid leave during pregnancy (both pre and post-delivery), medical termination, miscarriage, and adoption.

Registering for ESI provides employees with a range of benefits that protect their health, income, and family. The key advantages of ESIC registration include:

• Sickness Benefit: Employees are entitled to receive 70% of their wages for up to 91 days per year during certified sickness.
• Extended Sickness Benefit: For long-term illnesses, employees can receive 80% of their wages for up to two years.
• Enhanced Sickness Benefit: Employees undergoing sterilization procedures are entitled to full wage compensation for recovery—7 days for Vasectomy and 14 days for Tubectomy.
• Medical Benefits: Employees and their families have access to comprehensive medical care.
• Retired Medical Benefits: Retired employees and their spouses can continue to receive medical benefits by paying an annual premium of Rs. 120.
• Maternity Benefit: Female employees are entitled to receive full wages for 26 weeks of maternity leave, extendable by one month.
• Dependents’ Benefit: If an employee dies due to a work-related injury, their dependents receive 90% of the employee’s wages as a monthly payment.
• Temporary Disablement Benefit: Employees who suffer from work-related injuries receive 90% of their wages until they recover.
• Permanent Disablement Benefit: Employees with permanent disabilities are entitled to a monthly payment based on the assessed loss of earning capacity.
• Funeral Expenses: A fixed sum of Rs. 15,000 is provided to the dependents or the person performing the last rites to help cover funeral expenses.