FAQs on ESIC

The Employees’ State Insurance Corporation (ESIC) program, governed under the ESI Act, 1948, provides comprehensive social security benefits to employees across India. It not only covers medical expenses but also offers cash support during sickness, maternity, or workplace accidents. This guide answers the most common questions about ESIC registration, contributions, and benefits.

1. How Does the ESIC Programme Benefit Workers?

Employees enrolled under the ESIC scheme are entitled to full medical coverage for themselves and their families. The scheme also provides cash compensation during periods of sickness, pregnancy, or workplace injury, helping employees maintain financial stability while absent from work.

2. Which Establishments Are Eligible for ESIC Coverage?

ESIC coverage applies to various establishments, including:

• Shops

• Hotels and restaurants

• Movie theatres

• Road transport services

• Newspaper establishments

• Private educational institutions

Note: Some states have not extended ESIC coverage to educational or medical institutions.

3. What Is Registration for a Factory or Establishment?

ESIC requires all factories and establishments to register for compliance, which can be done online via self-registration on the ESIC portal. Alternatively, ESIC may request registration upon identification of an eligible workplace.

4. Is ESIC Registration Mandatory?

Yes. Employers must register their establishments within 15 days of the ESIC Act becoming applicable under Section 2A and Regulation 10. B.

5. How to Register Online?

1. Visit www.esic.in, the official ESIC portal.

2. Provide details such as establishment name, address, employer name, bank account, PAN, state, region, and email.

3. Upon registration, a user ID and password are sent to the employer’s email.

4. A 17-digit ESIC registration code is generated automatically for the establishment.

6. Contribution Deadlines

Employers must deposit the employee’s contribution within 15 days of the end of the salary period in a bank approved by ESIC.

7. Consequences of Non-Payment

If an employer fails to remit contributions deducted from employees’ wages, it is considered a breach of trust under Section 40(4) of the ESI Act and is punishable under Sections 85, IPC 406, and IPC 409.

8. Interest on Overdue Payments

Delayed contributions incur simple interest at 12% per annum until the payment is made, as per Regulation 31.

9. Records Required for ESIC Audit

Employers must maintain:

• Books of accounts, payroll, and muster rolls

• Form-11 Accident Register

• Inspection book

• Employees’ Register for all workers under the principal employer

10. Reports Employers Must Submit

Employers are required to submit:

• Form-12 (Notice of Accident) to the relevant ESIC branch

• Records of attendance, wages, and other account details of the principal employer

11. How Employees Register

Employees must provide their family photograph and personal details upon joining to enable online registration. This registration is one-time and generates a unique ESIC insurance number, valid throughout the employee’s life, even if they change jobs or locations.

12. Receiving Medical Benefits at a Different Location

Insured employees can access medical care at any ESIC dispensary nationwide by linking their Aadhar Card and insurance number. To simplify access, employees should obtain a Form 105 from their employer.

13. Dependent Benefits: Duration and Rate of Payment

ESIC provides financial support to dependents of insured employees as follows:

• Widow: 50% of the wage until death or remarriage

• Widowed mother: 40% of the wage until death

• Unmarried daughters: 20% until marriage

• Children: 40% until age 25

If a dependent remains mentally or physically disabled, benefits continue even after age 25 or marriage.

Conclusion

The ESIC program is a vital safety net for employees, offering medical coverage, financial support, and benefits for dependents. Employers must comply with registration, contribution, and reporting requirements to ensure workers receive their entitlements and to avoid penalties. Understanding ESIC procedures is essential for both HR managers and employees to maximize the scheme’s benefits.