It creates a one-stop shop for all your statutory dues. You can gain the advantages like no need to visit the designated branches of collecting bank and enjoy the convenience of making payment online from anywhere. Employee State Insurance Scheme of India is a multi-dimensional social security method especially provide the socio-economic protection to the employees.
The protection includes the events of sickness, death due to employment injury, disablement, and to provide the medical care to the insured employees and their families.
How to Make Registration of the Employers for ESIC
Under ESIC scheme, employers no need to submit the physical application to make a registration and it can be done fully online. The process is totally online and on real time basis. There is no manual intervention or approval is required for registration. Employers need to consider below steps for registration process such as:
- Primarily, log into the online website esic.in and click on log in button which is available on right-hand side of the web page.
- Once you've entered into the log in page, you can click on sign up button.
- By clicking on sign up option, it will allow you to enter your essential credentials such as company name, principal employer name, email address, and state & region.
- It will send an email which included the login credentials like user id and password once the employer successfully signed up for registration.
- Again, you need to log into the website www.esic.in with the provided login credentials.
- Click on new employer registration button.
- You need to select a type of unit and click on submit button.
- It gives you the information sheet to fill up your details such as name of unit, postal address for communication, ESI code no, etc.
- After completion of filling the details on ESI online payment, you can click on submit button.
- You can get to view or print the C-11 registration letter which can be sent to your registered email id. It is a computer generated letter and does not require any registration and can be used as a valid proof document of registration under the ESIC Act.
- Employer need to register for advance contribution under registration process if the employer nature of works comes under the categories like contractor, security agencies, or men power suppliers.
- By clicking on initial contribution, the system will redirect you into the advance esic challan creation system.
- Once it has generated the challan number, you need to note down that number for future reference.
How Does It Work
In order to pay ESIC payments online, you need to follow below mentioned steps as follows on esic.in :
- At initial point, you're required to log into Employee State Insurance Corporation (ESIC) portal application through the website link from your computer or desktop or tablet or mobile device.
- Once you've logged into the page, you can click on the generate challan tab to create the challan for the payment of monthly contribution.
- After creation of challan, you can click on submit button which helps to generate the challan number.
- In the next step, you can click on continue button which lets you to proceed further to the payment gateway of multi-option system.
- By clicking on other bank's internet banking system, you can get to view internet banking options of all banks.
- To make your payment, you can select your preferred bank which you're using for doing transactions.
- Now, you can enter customer id and password for net banking and login id, domain id, and password for ENet.
- You can sign into your account details to get your account debited online.
Ultimately, you can complete the process of registration under ESIC online for your organization.
ESIC Scheme Benefits
Once your organization is registered with the ESIC, you can able to get six social security benefits such as medical benefit, sickness benefit, maternity benefit, disablement benefit, dependants benefit, and other related benefits.
Pay ESIC Online provides the full medical care to an insured person and his family members from the day he enters into the insurable employment. The retired and permanently disabled insured persons can also able to get medical care in addition to their spouses on the payment of a token annual premium of Rs.120.
In the medical care coverage, you can find the benefits such as specialist consultation, system of treatment, scale of medical benefit, artificial limbs & aids, special provisions, domiciliary treatment, administration of medical benefit in a state, benefits to retired IPs, imaging services, in-patient treatment, and reimbursement.
Sickness benefit is a form of cash compensation at the rate of 70 percent of wages is payable to insured workers during the periods of certified sickness. In the sickness benefit, you can find two other benefits such as extended sickness benefit and enhanced sickness benefit.
Under extended sickness benefit, you can able to gain the extendable benefit up to two years in the case of 34 malignant and long term diseases with an increased rate of 80 percent for wages. Whereas enhanced sickness benefit is equal to the full wage which is payable to the insured persons undergoing sterilization for 7 days or 14 days for male and female workers respectively.
Through this benefit, pregnant women is get benefited by the payable for twenty six weeks which can be extendable for one month on medical advice.
There two types of disablement benefits available for the organizations which are registered under ESIC act and they are temporary disablement benefit and permanent disablement benefit. With the temporary disablement benefit, users can able to get paid contribution at the rate of 90 percent of wage as long as the disability continues. The permanent disablement benefit lets the users to get paid with the rate of 90 percent of wage on a monthly basis which is totally relied on the extent of loss of earning capacity as certified by the medical board.
It allows the dependants to get the benefit of a deceased insured person in case of death occurs due to employment injury or occupational hazards.
You can also enjoy other benefits from the ESIC organization such as funeral expenses and confinement expenses. In addition to the aforementioned advantages, ESIC offers some other need based benefits to insured workers. The benefits included old age medical care, vocational rehabilitation, and physical rehabilitation. The organization has incorporated an interesting feature to the ESIC scheme which is the contributions are related to the paying capacity as a fixed percentage of wages. Along with this, they are providing social security benefits for everyone without any distinction.
This scheme is applicable to non-seasonal factories which are employing 10 or more persons. It has been extended to the shops, restaurants, cinemas, hotels, including preview theatres, road-motor transport and newspaper establishments employing 10 or more persons. ESIC scheme will also applicable for private medical and educational institutions employing 10 or more persons in certain states in the India country. It is being implemented district wise in stages. It can be applicable for all states except Manipur and Arunachal Pradesh.
ESIC constitutes of members which representing a group that subsuming employers, employees, the central and state government, and representatives of parliament and medical profession.
ESI scheme is like the social security schemes across the world and it is a self financing health insurance scheme. The contributions are raised from the employees and employers as a fixed percentage of wages. Now, the covered employees contribute 1.75% of wages whereas the employers contribute 4.75% of the wages.
Suspension Allowance or Subsistence Allowance
During the period of suspension allowance, the employee is not allowed to get actually work and not given the full remuneration. Whereas permissible subsistence allowance paid to the employee by the way of subsistence. This type of allowance is part of wage and consequently the amount of wage is paid to the suspended employee and contribution is payable.
If in the case of requirement to do more work than normal work during the course of working hours, employer offers to the employee to do the overtime work after the working hours. The contribution is payable on overtime allowance.
For some occasions, bonus will be paid to the employees that is not considered under the wage and it is provided the periodicity of the payment is more than two months. As the annual bonus is not treated as a wage, no contribution is payable on annual bonus.
The additional remuneration has to be paid to become the wages at intervals which is not exceeding for more than two months. It is to be considered as an actual payment so that no contribution is payable on the incentive bonus.
Production bonus is similar to the incentive bonus that can be paid to the workers as additional remuneration. This has been paid at intervals not exceeding for more than 2 months in order to become wages.
Inam or Ex-Gratia Payment
Inam is also nothing but a payment which has been provided by employer to the employee as a reward for the services rendered to enhance the organization. It is being paid for special skills or higher responsibilities or additional duties and it may be considered as remuneration and contribution is payable. The employer has a right to introduce the scheme of Inam for his or her organization but at the same time the employer has no right to withdraw it or revise it. Although there is no scheme of Inam in any organization, the employer might be making the payment under head of the Inam based on understanding of the third-parties. The nature of payment and its periodicity will be ascertained and check whether the scheme is under coverage of contract base.
Wages Paid During Layoff
In the period of layoff, employees is not given any actual work and is also not given full remuneration. But, certain wages has to be paid to the employee based on the remuneration by remained attachment to the employer.
House Rent Allowance
House rent allowance is represented as a wage if in the case of it is being paid to the employees. In the case of where an employee is being paid house rent allowance, it will be included both for coverage and contribution.
As per terms and conditions of employment, fixed conveyance allowance can be treated as wages for the purposes excluding in different cases like:
- Reimbursement of actual cost of conveyance and subject to proof of expenditure.
- Amount towards conveyance paid or reimbursed to any employee for incurring expenses for particular duty.
- Payment of certain amount for maintenance vehicle and subject to the production of records to maintain the vehicles.
This fixed allowance can be paid at an interval before exceeding for more than two months until such payment is made as per contract.
Medical services will be provided for the employees who working in factories or establishments. But, in certain organizations, it will offer the amount spent by the employees for medical services. While for some organizations allowed the monthly cash payment for medical care of the employees.
There is an availability of reimbursed the cost of news papers for some organizations or establishments. While in some other factories or establishments, you can find monthly paid allowance for news papers instead of reimbursed the cost of news papers. In some other factories, the employer get to be paid on a regular basis for the news papers.
The employees' children studying in schools or colleges get to be paid on a monthly education allowance. It is considered as the wage and contribution is chargeable on the provided amount. In some cases, instead of get paid on a monthly basis, there is a facility of providing the amount spent as fee which is reimbursed to the employees and booked under education allowance.