The Employees’ State Insurance Corporation (ESIC) is a self-financing social security and health insurance scheme for Indian workers.
Employees' State Insurance Corporation (ESIC)
Outline
The Employees’ State Insurance Corporation (ESIC) is a self-financing social security and health insurance scheme for Indian workers. Managed by the Ministry of Labour and Employment, it provides comprehensive benefits to employees and their families.
Key Features of ESIC
1.Medical Benefits – Free comprehensive medical care to insured employees and their dependents.
2.Sickness Benefits – Cash compensation for a specified period in case of sickness, equivalent to 70% of wages.
3.Maternity Benefits – Paid maternity leave for insured women, covering prenatal and postnatal care.
4.Disability Benefits – Monthly payments to employees who suffer from temporary or permanent disablement due to employment injury or occupational hazards.
5.Dependents’ Benefits – Pension to dependents of an employee in case of death due to employment injury or occupational hazards.
6.Funeral Expenses – Lump-sum payment to cover the funeral expenses of a deceased insured person.
7.Rehabilitation Allowance – Financial assistance for vocational rehabilitation of disabled insured persons.
ESIC Registration Process
Steps | Details | |
Application | Submit Form-1 (Employer’s Registration Form) through the ESIC portal. | |
Document Submission | Upload necessary documents such as PAN, address proof, bank details, and employee details. | |
Verification | ESIC officials verify the submitted documents and application. | |
Code Allotment | Upon successful verification, a 17-digit unique identification number is allotted to the employer. | |
Contribution Rates
Contribution Type | Rate |
Employee | 0.75% of wages |
Employer | 3.25% of wages |
Comparison Between ESIC and EPF
Criteria | ESIC | EPF |
Objective | Provide medical and cash benefits to employees. | Provide retirement and insurance benefits to employees. |
Coverage | Employees earning ≤ Rs. 21,000/month. | Employees earning any salary (mandatory for > Rs. 15,000/month). |
Employer Contribution | 3.25% of wages | 12% of Basic + DA |
Employee Contribution | 0.75% of wages | 12% of Basic + DA |
Benefits | Medical care, sickness, maternity, disability, dependents’ benefits. | Provident fund, pension, life insurance, partial withdrawals. |
Administration | Managed by ESIC under Ministry of Labour and Employment. | Managed by EPFO under Ministry of Labour and Employment. |
Compliance Requirements
1.Regular Contribution – Employers must deposit their share along with the employee’s share to the EPF account monthly.
2.Record Maintenance – Maintain records of all employees covered under EPF.
3.Return Filing – File monthly and annual returns detailing contributions and withdrawals.
Penalties for Non-Compliance
Penalties for non-payment of contributions, late payments, and non-maintenance of records can range from fines to imprisonment.
Conclusion
ESIC and EPF are vital components of the social security framework in India, ensuring financial stability and medical care for employees. Employers must comply with these regulations to foster a secure and supportive work environment. Proper understanding and timely compliance with ESIC and EPF regulations can help businesses avoid legal complications and build a positive reputation among their workforce.
Why Choose Udyog Buddy ?
Udyog Buddy is a team of experienced professionals, our end-to-end service model, combined with personalized support, makes the incorporation journey straightforward and stress-free. Additionally, our commitment to cost-effective solutions and time efficiency allows businesses to focus on growth and operations without unnecessary delays or financial strain. Choosing Udyog Buddy means partnering with a trusted expert dedicated to helping your business succeed from the very start.
Connect with us for any queries
Call/WhatsApp +919301789019 or E-mail at [email protected]
What Other Services We Offer
We provide the best service by delivering exceptional quality, exceeding expectations, and prioritizing customer satisfaction.
Private Limited Company
Limited Liability Partnership
One Person Company
GST Registration
For certain businesses, GST registration is mandatory. If any organization carries on the business without registering under GST, it is an offence under GST and heavy penalties will apply.
Startup India Registration
Start-up India is a flagship initiative of the Government of India, intended to catalyse Start-up culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India.
FSSAI Registration
Obtaining an FSSAI license is mandatory before starting any food business operation in India. All the traders, manufacturers, etc. who are involved in the food business must obtain a FSSAI Number.
ISO Registration
ISO refers to International Organization for Standardisation. ISO Certification is mandatory to form certain standards that ensure the quality, safety, and efficiency of products and services.
Trademark Registration
A trademark can be any word, phrase, symbol, design, or combination of these things that identifies your goods or services. Get your Trademark application filed within 24 hours.
Copyright Registration
With copyright registration, you become a legal owner of your creative work in respect of books, paintings, music, website, etc. It secures the creative work of the author.
ITR Filings
Get an expert to do your taxes with an end-to-end online assistant. Take the first step towards income tax e-filing and file it today!
Agreement Drafting
Simplify your Complicated Documentation with us. We offer all types of documents whether it’s an Agreement, Contract, Affidavit, Notice or many more.
