ESIC stands for ‘Employees State Insurance Corporation’. The Scheme is administered by a corporate autonomous body which has members representing the employers, employees, the Central Government, The State Government, Medical Professional and the Parliament. ESIC registration provides monetary and medical benefits to Employees in a case of sickness, maternity, and employment injury and to make provisions for related matters.
This tax first came into existence in 1949 and the power has been vested with the State Government to levy this tax as per Clause (2) of Article 276 of the Constitution of India. The amount of this tax also depends on the gross income slab of the person. The professional tax is something similar to income tax, but income tax is collected by the Central Government while professional tax is collected by the State Government.
Full medical care is provided to an Insured person and his family members from the day he enters insurable employment.There is no ceiling on expenditure on the treatment of an Insured Person or his family member.
Sickness Benefit in the form of cash compensation at the rate of 70 per cent of wages is payable to insured workers during the periods of certified sickness for a maximum of 91 days in a year. In order to qualify for sickness benefit the insured worker is required to contribute for 78 days in a contribution period of 6 months.
Extended Sickness Benefit(ESB): SB extendable upto two years in the case of 34 malignant and long-term diseases at an enhanced rate of 80 per cent of wages.
Enhanced Sickness Benefit: Enhanced Sickness Benefit equal to full wage is payable to insured persons undergoing sterilization for 7 days/14 days for male and female workers respectively.
Maternity Benefit for confinement/pregnancy is payable for three months, which is extendable by further one month on medical advice at the rate of full wage subject to contribution for 70 days in the preceding year.
Temporary disablement benefit(TDB): From day one of entering insurable employment & irrespective of having paid any contribution in case of employment injury.Temporary Disablement Benefit at the rate of 90% of wage is payable so long as disability continues.
Permanent disablement benefit(PDB): The benefit is paid at the rate of 90% of wage in the form of monthly payment depending upon the extent of loss of earning capacity as certified by a Medical Board.
Any employer having more than 10 employees is mandatorily required to take up the ESI Registration. Within 15 days of submission of Employer’s registration form (Form-01), the company or firm is expected to obtain an Identification number or Code Number from the Regional office. This figure will be used in correspondence related to the scheme. Form3 accompanies Form 1.
At joining the Private Limited Company, an employee required to fill the Declaration form i.e. Form1 along with a copy of the family photo which the employer will be submitting at the ESI branch office. Within 3 months a permanent photo ID is provided to the employee and will be provided an insurance number for identification purpose under the scheme. Once registered, the registration can transfer if the employee switches company.
ESI return filing for employers having less than 10 employees.
ESI return filing for employers having more than 10-50 employees.
ESI return filing for employers having more than 50 employees.