Eligibility & Benefits of ESI registration

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One of India’s most popular schemes amongst employees is the Employees State Insurance (ESI) Scheme. The scheme is valid for all the employees employed in different sectors across India. The scheme is regulated and monitored by a Self-Financing Security and Labor Welfare Organization Body known as ESIC. The governing body has to act according to the rules and regulations issued by the Indian ESI Act of 1948.

In this article, we will be discussing the Eligibility & benefits of ESI registration.

ESI Registration

ESIC is the acronym for Employee’s State Insurance Corporation and you can apply there for ESI registration. ESI Registration offers a white range of monetary common medical and other benefits for the employees.

When do you need ESI?

You need to apply for ESI registration if your company has more than 10 employees with an individual salary under the limit of INR 15,000 per month. Once you have successfully registered the governing body, ESIC will recognize your employing entity and allot a 17-digit unique identification code.

To be eligible for the benefits under the scheme, all the registered companies have to contribute about 4.75% of the total monthly salary of their employees. On the other hand, all the eligible employees have to contribute 1.75% of the monthly salary to the company ESIC funds every month.

However, all the employees earning up to Rs 100 per day are exempted from paying any amount to the scheme.

ESI Eligibility Criteria

To avail all the benefits offered under the ESI scheme, you have to fulfill the following eligibility criteria:

  • Under the Sec 2(12) of the ESI Act, 1948, any employee working in a factory or organization with more than 10 employees is eligible
  • All the people working in various sectors like restaurants, hotel transportation companies, newspaper establishments, cinemas, theaters, education, and medical institutions working with more than 20 employees are eligible.
  • To get all the benefits of social security under the scheme, all the employees should have a minimum wage of INR 10000.
  • The wage limit of a regular employee is INR 21,000 per month, and for an employee with a disability, the coverage is INR 25000 per month.

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Benefits of the ESIC Scheme

tasks_2021_2xMedical Benefit

From the very moment the employee starts insurable employment, their entire family will receive full medical care. There is no specific amount on how much the employee or a family member can spend on their treatment.

On a mere annual premium of INR 120, medical care will also be provided to retired and permanently disabled persons along with their spouses.

tasks_2021_2xMaternity Benefits

Insured employees will also receive maternity benefits during pregnancy. The amount is payable for 26 weeks, along with medical advance at full salary rate subject to the payment for 70 days in the previous 2 contribution periods.

tasks_2021_2xSickness Benefit

All the ensured employees can claim about 70% of their daily wages for 91 days during their sick leave. The employees will also receive regular cash support during any sick leave they have applied for.

The employees will only be eligible for cash compensation for the sickness if they have worked for about 78 days during the minimum contribution period of 6 months.

tasks_2021_2xDisability Benefit

  1. Temporary Disablement Benefit: From the day the person is entering insurable employment, irrespective of paying any amount for employment-related injury, they are eligible for this benefit. As long as the disability continues, the person will be receiving temporary disablement benefits at the rate of 90% of their salary.
  2. Permanent Disablement Benefit: The employee will be receiving the benefit at the rate of 90% of their salary. This payment will be available in the form of monthly payment depending upon the amount of loss of the earning capacity of the employees as certified by the Government Medical Board.

The employees are also given physical rehabilitation-related expenses for any vocational training in case of any physical disability at the office and to the Permanently Disabled insured person for undergoing VRS.

tasks_2021_2xDependant or Death Benefits

This benefit amount will be paid in total to the dependents of the deceased insured employees in the form of monthly wages. The payment will be at the rate of 90% of the salary of the employee if the death occurs due to a job-related injury or occupational hazard.

Benefits of the ESIC Scheme

Some of the other benefits that the dependent will be getting are:

Funeral Expenses: A total amount of INR 15,000 will be paid to the dependents of the employee for performing the final rights of the insured employee.

ESIC Scheme: Registration, Benefits, and Process

However, if you want any other guidance related to ESIC Registration, please feel free to talk to our business advisors at 8881-069-069.

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