ESIC registration- Process & Document Required: Employees’ State Insurance (ESI) scheme is a social security scheme aimed to provide socio-economic protection to organised sector employees in the event of sickness, maternity, disablement and death due to employment injury and also to provide medical care to the insured employees and their families. The scheme is administered by the Employees’ State Insurance Corporation (ESIC) under the Ministry of Labour and Employment with members representing employers, employees, central and state governments, medical professionals and members of Parliament.
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The scheme is applicable to all factories and other establishments employing 10 or more people and the monthly wage of an employee is up to Rs 21,000. The employer’s contribution to the scheme is 3.25 per cent of the monthly wages while employees need to contribute only 0.75 per cent of his/her salary every month.
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Here are the steps for MSMEs to register themselves for the ESI scheme:
- Log in to the esic.gov.in and the page will redirect you to a new page with the option ‘New Employer Registration’; click on it
- Select the unit type – factory or Shop Establishment from the drop-down menu and click on ‘Submit’
- Form 01 for Employer Registration will come up with four tabs – Unit Details, Employer Details, Factory/Establishment Details, Employee Details
- Fill in all the details and click on ‘Submit’
- A new page ‘Payment of Advance Contribution’ will come up for payment of advance contribution for six months
- The employer will get the Registration Letter called C-11 with a 17-digit registration number after payment
Among the documents required for registering with the ESI scheme are the business registration certificate as per the Factory Act or Shops and Establishment Act, incorporation certificate, GST certificate, Memorandum and Articles of Association, ID proof and PAN of the enterprise, employees’ list and their compensation details, list of directors and shareholders, and a cancelled cheque by the company.
Importantly, failure on the company’s part to pay the contribution prescribed with the ESI scheme will attract a penalty of 12 per cent interest per day of delay.
