What is ESIC Registration?

Employee State Insurance Corporation or ESIC is a self-financing social security and health insurance scheme which provides medical benefit, sickness benefit, maternity benefit and various other benefits such as funeral expenses, free supply of physical aids etc. to the employees and their family.

Employee State Insurance Corporation or ESIC is a self-financing social security and health insurance scheme which provides medical benefit, sickness benefit, maternity benefit and various other benefits such as funeral expenses, free supply of physical aids etc. to the employees and their family.

Who needs to register for ESI? (What establishments needs ESI registration?)

The following establishments having 10 or more employees attracts ESI coverage.

1. Shops
2. Hotels or restaurants not having any manufacturing activity, but only engaged in ‘sales’
3. Cinemas including preview theaters
4. Road Motor Transport Establishments
5. News paper establishments
6. Private Educational Institutions (those run by individuals, trustees, societies or other organizations and Medical Institutions including Corporate, Joint Sector, trust, charitable, and private ownership hospitals, nursing homes, diagnostic centers, pathological labs)

Rate of Contribution towards ESIC:

Currently the employee’s contribution rate towards ESIC (w.e.f. 01.07.2019) is 0.75% of the wages and that of the employer’s is 3.25% of the wages paid/payable in respect of the employees in every wage period.

However, this rate keeps on changing from time to time.

There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration.

ESIC registration is a statutory responsibility of the employers of the factory. It is mandatory according to the rules and regulation of the ESI Act 1948. You may get in touch with our compliance manager on 909-993-3788 or email info@carefortax.com for free consultation.