FAQ – Frequently Asked Questions about ESIC Registration in India
1. What is ESIC registration?
ESIC registration refers to the process of enrolling a company or establishment under the Employees' State Insurance Corporation (ESIC), a social security scheme in India. This registration is mandatory for any organization employing 10 or more individuals and provides them with various benefits, including medical care and cash benefits during sickness, maternity, disability, and more.
2. Who is eligible for ESIC registration?
Organizations in India employing 10 or more people, including regular and contractual employees, are required to register under ESIC. This includes factories, shops, hotels, restaurants, cinema halls, educational institutions, and more. Employees with a monthly salary of up to Rs. 21,000 are also eligible for ESIC benefits.
3. How to apply for ESIC registration?
To apply for ESIC registration, the employer needs to fill out the relevant form available on the ESIC website or in person at the nearest ESIC office. The form should be submitted along with necessary documents such as proof of incorporation, PAN and TAN, list of employees, and supporting records.
4. What documents are required for ESIC registration?
The documents required for ESIC registration include:
– Proof of incorporation of the establishment (such as certificate of registration, partnership deed, or memorandum of association)
– PAN card of the establishment
– PAN cards or aadhar cards of all employees
– A canceled cheque of the bank account in which ESIC contributions will be deposited
– Registration certificate and license issued by appropriate authorities, if applicable
– Proof of ownership or lease/rent agreement for the premises
5. Is it mandatory to register all employees under ESIC?
Yes, it is mandatory for employers to register all eligible employees under ESIC. This includes both permanent and contractual employees, irrespective of their designation or nature of work.
6. What are the benefits of ESIC registration?
ESIC registration provides employees with a range of benefits, including medical care, maternity benefits, disability benefits, unemployment allowance, and funeral expenses. It also offers cash benefits during sickness, employment injury, and maternity leave, in addition to provisions for dependent family members.
7. What is the contribution rate for ESIC?
Under ESIC, both the employer and employee contribute towards the scheme. As of January 2022, the contribution rate is 4% of the employee's wages, with the employer paying 3.25% and the employee contributing 0.75%.
8. How often should ESIC contributions be made?
ESIC contributions should be made on a monthly basis. Employers are required to pay the contributions within 21 days after the end of the calendar month in which the wages fall due. Failure to make timely contributions may result in penalties or interest charges.
9. Can an employer voluntarily register under ESIC if they have less than 10 employees?
Yes, an employer can voluntarily register their establishment under ESIC even if they have less than 10 employees. Voluntary registration allows the employees to avail ESIC benefits, although it is not a mandatory requirement.
10. What happens if an employer fails to register under ESIC?
If an employer fails to register under ESIC despite fulfilling the eligibility criteria, they may be liable for penalties and legal consequences. This includes fines, interest on unpaid contributions, and potential legal action by the ESIC authorities.
Remember, it is always advisable to consult a legal or HR professional to ensure compliance with the latest ESIC rules and regulations.