ESIC Registration

Eligibility for ESI registration

According to a notification of the ESI Act, the following entities are eligible for ESI registration:

• Shops
• Movie theatres
• Newspaper establishments (not covered under factory’s act)
• Private educational institutions
• Restaurants engaged only in sales
• Road motor Transport establishments

ESI applicability and coverage criteria

ESI applicability criteria as per the ESI act is that any employee whose gross salary is upto Rs. 21000 can avail this by the help of the employer. Also, it is mandatory for the employees, labour workers etc having gross salary upto Rs.21000 under such type of industrial unit where 50% to 90% injury or health cause is during company premises. ESI contribution by the employee is 1.75% and 4.75% by the employer.

Benefits of ESI registration Medical Benefits

• Complete medical care to all persons registered under ESI  and their family members.
• Retired and permanently disabled insured persons and their spouses are provided the medical care on payment of Rs.120/- of a token annual premium.

Sickness Benefits

• This benefit at the rate of 70% (in the form of salary) is payable in case of any certified sickness for a maximum of 81 days in a year.
• In order to be eligible for the sickness benefit, the insured worker has to contribute for 78 days for the period of 6 months.
• Workers can claim extended sickness benefit upto 2 years at an enhanced rate of 80% of salary, in case he / she is suffering from long-term diseases.

Maternity Benefit

• Maternity benefit for pregnancy is provided for the period of 3 months.
• Extendable by further one month on medical advice at the rate of complete salary subject to contribution for 70 days in the next year.

Disablement and Dependant benefit

• In case of permanent disablement, the benefit is payable at the rate of 90% of wage in the form of monthly payment as certified by Medical board.
• If in case of the death of an employee during company premises Dependant benefit is paid at the rate of 90% of the salary to his / her dependants every month after the death of the employee.

Funeral expenses

• Dependants or the person who performs the last rites, Rs. 10000/- is paid to them from the day 1 of entering the insurable amount.

Old age care medical expenses

• Medical facilities are free of cost for the insured persons who go out employment because of old age or disability due to a work-related injury.

Unemployment allowance

Under Rajiv Gandhi Sharmik Yojana, unemployment allowance is payable to the insured worker who becomes unemployed after being insured for 3 or more years. The allowances provided are;

• Unemployment allowance equal at the rate of 50% of salary for a maximum period upto 1 year.
• Medical care for self and family members from ESI hospital during the period zip receives unemployment allowance
• Also, vocational training provided for upgrading skills – Expenditure on fee / traveling allowance.