Employees State Insurance, or ESI, is what the Employees State Insurance (ESI) Act of 1948 defines. It combines a measure for social insurance for workers with responsibility for guarding their interests.
Employee State Insurance is managed by Employee State Insurance Corporation (ESIC), a separate organization housed inside the Ministry of Labor and Employment of the Government of India (ESI).
The ESI program for Indian laborers was started. As a result of company and employee contributions to the ESI program, workers are entitled to a comprehensive range of medical, financial, and other benefits under the ESI Act.
The ESI Scheme’s Sections
Employees’ State Insurance Corporation (ESIC) is a separate entity under the control of the Indian government’s Ministry of Labor & Employment.
- The Employees State Insurance (ESI), a self-financing social security and health insurance program for Indian workers in the organized sector, is administered by the ESIC.
- This program covers all employees enrolled under the ESI Act of 1948. The employee is given ESI coverage when he is unable to work or while his health is improving and he is regaining his ability to work.
- This program offers financial assistance to compensate for the worker’s lost wages when he was off work due to illness, childbirth, or a workplace injury. The worker’s family members are also granted access to the medical claim.
- If a confirmed case of a severe illness occurs, which lasts for a maximum of 91 days in the fiscal year, health benefits are provided at 70% of the pay.
How Do You Apply Online For ESIC?
The process registration consists of the five steps listed below. The Registration of the ESIC process begins with logging into the site, and creating a registration letter is the final step.
Step 1: Access The Portal
Employers are required to register on the ESIC Portal. They can do this by login into the ESIC site and selecting the ‘Sign Up button on the homepage, which is located beneath the ‘Employer Login’ option. Employers must complete the form after clicking the “Sign up” button.
Step 2: Login Information
After submitting the portal registration application, the employer will receive an email confirmation at the email address and mobile number provided during registration. The email will provide the login details required to register as an ESIC employee or employer.
Step 3: Filling Out Employee Form 1 Registration
Utilize the username and password provided in the email to log into the ESIC portal at the third step. This will be replaced with “New Job” on the following page. Registering a new company: ‘New Employer Registration’ should be selected from the drop-down option. When finished, select “Unit Form” from the drop-down option, then click “Submit.” The employer must complete a “Register of Employers” form that will display. Both the employer and the employees’ information is included in this registration. Once all fields have been filled out, the employer must press the “Submit” button to complete the application.
Step 4: Application Fees for ESIC
After submitting the Employer Registration Form-1, the employer will be taken to the “Payment of Advance Contribution” tab, where they must enter the amount to be paid and choose the payment method. The six-month deferred contribution is the responsibility of the employer.
Step 5: Create A Registration Letter
After the employer successfully makes the six-month advance contribution payment, the ESIC department issues a system-generated Registration Letter (C-11) with a 17-digit Registration Number to the employer. The Registration Letter is proof of the employer’s registration (C-11).
Complete The ESIC Application Process For New Hires
First and foremost, the employer with an ESIC application must apply for the registration of a new employee. This must be completed within ten days of the new employee’s appointment. Following that, the subsequent steps must be completed:
Issuance of Employee Insurance No
The employer will get a Registration Intimation Letter (RIL), including the 17-digit ESIC Application Code, once the application for registering a new employee in ESIC has been submitted. The employer must now do the next task, which is to record all the information on his employees and their families:
- Photograph,
- Aadhaar Card or another form of address verification
- Authentication of Employee ID
- Any legal documentation proves an employee’s relationship with their protected family members.
You will use this information to generate the insurance number. The same must be utilized by the employee for the rest of his life, regardless of job changes, location changes, or establishment changes.
After receiving the insurance number, the next step is to use your employer ID to connect to the ESIC site and provide the correct employee information. To edit and preserve the employee information on the ESIC Portal, do this. The data of the residence, dispensary, or place of employment must be updated immediately if there are any changes.
Temporary ID Certificate (TIC)
The employer must now receive a hard copy of the Temporary Identity Certificate (TIC), which has been updated on account of the new employee, following completion of the ESI registration process. This TIC is only going to be suitable for one month.
Permanent ID Certificate (TIC)
The next step is to connect the employee’s ESIC insurance number to his Aadhaar. The TIC will only become a Permanent Identity Card following this stage (PIC).
With the PIC and insurance number, the employee and every member of his family can now readily take advantage of the ESI Scheme’s benefits. The employer must attach the employee’s and his family members’ photographs to the TIC and validate them with their employer’s stamp and signature if the employee’s Aadhaar number or the Aadhaar number of a family member is not readily available.
However, in this instance, the covered employee, along with all his family members, must link their Aadhaar numbers to the ESIC portal within a month. This is crucial if you want to use the ESIC hospitals and dispensaries’ medical benefits. Additionally, the financial benefits of the ESIC Scheme can only be accessed from any ESI branch office after receiving the TIC.
Employees’ Benefits From The ESI Program
The following are the primary benefits for workers of the ESIC Application
- Coverage for medical claims for the employee and his family.
- Female employees who have taken maternity leave receive maternity benefits. The same will apply to their paid time off.
- The employee’s ward will receive 90% of his wage each month following his death, for example, in the worst-case scenario if they pass away while still working.
- In addition, the expense of the funeral service must be met.
- If the employee cannot report to work owing to disease, all the preceding reliefs must also be provided.
- Above all, the ESIC program shall cover the medical costs of all senior citizens and citizens who depend on the employee.
Conclusion
The main goal of the multifaceted ESI social security and health insurance program for workers in the organized sector is to provide them with socio-economic protection. Classified sector employees are financially protected in case of illness, maternity leave, death, or inability to work due to an injury sustained at work is undoubtedly a blessing for them.
The business is expected to contribute 4.75% of the total monthly wage owed to employees to this program. Contrarily, employees must make an annual contribution equal to 1.75% of their monthly salary. Contact Vakilsearch for additional information or any questions.
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