ESI Registration Online

ESI Registration – An Overview

ESI Registration is a mandatory requirement for eligible businesses under the Employees’ State Insurance (ESI) Scheme, governed by the ESI Act. This scheme provides essential medical benefits and financial protection to employees, ensuring their well-being in cases of sickness, maternity, disability, or employment-related injury. The scheme is administered by the Employees’ State Insurance Corporation (ESIC).

ESI registration applies to all establishments employing more than 10 employees, including those covered under the Establishments Act and other organizations such as newspaper establishments.

ESI Registration Process

The ESI registration process can be completed online through the ESIC portal or the Shram Suvidha Portal. Employers are required to submit the following documents:

  • Company PAN Card

  • Registration Certificate or Certificate of Incorporation

  • Address proof of the establishment (such as utility bills)

  • Cancelled cheque of the business bank account

  • Partnership deed (if applicable)

In addition, details of employees, including their mobile numbers, email IDs, and total number of employees, must be provided during the registration process.

ESI Code Number

Upon successful registration, ESIC issues a unique 17-digit ESI code number. This code is essential for future compliance, including monthly contribution payments and tracking employee contributions under the scheme.

ESI Contributions and Compliance

Employers are required to pay ESI contributions based on employees’ monthly wages, as per the rates prescribed by the ESI Corporation. These contributions must be deposited within the specified time limits into the designated bank account. Timely payments ensure that all eligible employees, known as Insured Persons, continue to receive benefits under the scheme.

Employers must also maintain proper employee records, such as attendance registers, and file ESI returns within the prescribed due dates. Non-compliance may result in penalties under the Factories Act and regulations issued by the Central Government.

Benefits of the ESI Scheme

For employees, the ESI scheme offers comprehensive medical care through ESIC hospitals and approved medical institutions. It also provides health insurance coverage for employees and their families, including maternity benefits, occupational health care, and compensation for employment-related injuries. Employees may also receive cash benefits during periods of illness or temporary or permanent disability.

Importance of ESI Registration for Businesses

For businesses, ESI registration is crucial to ensure legal compliance, avoid penalties, and build a healthier and more secure workforce. This social security scheme supports workplace safety, aligns with Government of India regulations, and promotes employee welfare.

ESI Registration is therefore essential for every qualifying business establishment in India, ensuring long-term protection and benefits for both employers and employees under the ESI scheme.

Who Needs ESI Registration?

Under the Employees’ State Insurance Act, 1948, ESI registration is mandatory for all factories and establishments employing more than 10 employees (or 20 employees in certain states). This requirement applies to a wide range of organizations, including private educational institutions and other establishments covered under factory and establishment laws.

Employees earning a monthly wage of up to ₹21,000 (or ₹25,000 in the case of persons with disabilities) are eligible for coverage under the ESI scheme.

Employer and Employee Contributions

As part of the ESI registration process, employers are required to contribute a fixed percentage of an employee’s monthly wages toward the ESI scheme. These contribution rates are prescribed by the Ministry of Labour and Employment. While both employers and employees contribute to the scheme, the employer’s contribution forms the larger share. These contributions provide employees with benefits such as medical care, disability coverage, and income support during illness.

Documents and Registration Process

To complete ESI registration, employers must submit essential documents, including:

  • PAN Card of the business

  • List of employees

  • Articles of Association or incorporation documents (for companies)

The registration process is completed online through the ESIC portal. Upon successful registration, a unique 17-digit ESI registration number is issued. Businesses that are already registered can access the Employer Login on the ESIC portal to manage contributions, employee details, and ongoing compliance.

Compliance and Government Guidelines

For proper registration, businesses must also provide additional information, such as details of the establishment’s health insurance coverage, and comply with guidelines issued by the Central and State Governments. This applies to all entities covered under factory or establishment laws, including private educational institutions.

Employers can track the status of their ESI registration through the Common Registration Link or the Insured Person (IP) Portal. Timely registration and compliance ensure that Indian workers receive protection under the social security laws of the Government of India (भारत सरकार).

Benefits of ESI Registration

ESI registration helps businesses comply with statutory requirements, preventing penalties while promoting employee welfare. By offering both medical and financial protection, the ESI scheme provides significant support to employees during times of need.

Medical Benefits for Employees

The ESI scheme offers comprehensive medical care to employees and their family members from the date of registration. It covers hospitalization, outpatient treatment, specialist consultations, diagnostic services, and preventive healthcare. This ensures access to quality medical services without financial burden.

Maternity Benefits

Women employees registered under the ESI scheme are entitled to maternity benefits, including paid leave during pregnancy, confinement, and the postnatal period. These benefits include cash allowances and medical care, providing financial stability and healthcare support during this crucial phase.

Disability and Dependant Benefits

In cases of employment-related injury or illness leading to disability, the ESI scheme provides disablement benefits, which may be temporary or permanent depending on the nature of the disability. In the unfortunate event of an employee’s death due to employment-related causes, dependant benefits are extended to eligible family members, ensuring continued financial support.

Funeral Expense Coverage

The ESI scheme provides a lump-sum payment toward funeral expenses in the event of an employee’s death. This benefit helps the family manage immediate costs during a difficult time.

Financial Security for Employees

Overall, the ESI scheme serves as a strong financial safety net for employees. Funded through contributions from both employers and employees, it offers protection against financial hardships arising from illness, injury, disability, or death. This ensures long-term financial security and peace of mind for employees and their families.

Eligibility for ESI Registration

By meeting the prescribed eligibility criteria, both employers and employees can benefit from the wide range of protections offered under the ESI scheme.

Industry-Specific Applicability

The Employees’ State Insurance (ESI) Act applies to non-seasonal factories and establishments employing more than 10 employees (or 20 employees in certain states). Registration is mandatory for such establishments if employees earn a monthly wage of up to ₹21,000 (or ₹25,000 in the case of persons with disabilities).

The ESI Act covers a wide range of industries, including factories, shops, cinemas, hotels, restaurants, and other notified establishments.

Minimum Requirements for Obtaining an ESI Card

To obtain an ESI card, an employee must work in an eligible establishment and earn a monthly salary below ₹21,000. Once registered under the scheme, employees receive an ESI card that enables them to access medical care, maternity benefits, and other social security protections.

Both employers and employees contribute a fixed percentage of the employee’s wages to the scheme, ensuring continuous access to benefits.

Eligibility Criteria for Employers

Employers operating in covered industries must register under the ESI scheme if they employ more than 10 employees (or 20 in some states). Employers are required to contribute 3.25% of the employee’s wages, while employees contribute 0.75%.

Employers must ensure timely payment of contributions and compliance with ESI regulations to avoid penalties and ensure uninterrupted benefits for employees.

Eligibility Criteria for Employees

Employees earning up to ₹21,000 per month are eligible for ESI benefits. Employees with disabilities are eligible if their monthly wages do not exceed ₹25,000. Contributions made by employees allow them to receive benefits such as medical treatment, maternity leave, sickness benefits, and disability support.

ESI Act

The Employees’ State Insurance Act also promotes measures to enhance the overall health and welfare of insured employees, going beyond basic social security benefits.

Employees’ State Insurance Act, 1948

The Employees’ State Insurance (ESI) Act, 1948 is a landmark legislation enacted by the Government of India (भारत सरकार) to provide social security to workers across the country. The Act offers financial and medical support to employees during times of sickness, maternity, disability, or employment-related injury.

The scheme is administered by the Employees’ State Insurance Corporation (ESIC), which ensures access to medical care and financial assistance for insured employees and their dependent family members.

ESI Registration and Employer Obligations

For businesses, ESI registration is mandatory to ensure compliance with the provisions of the Act. Employers are required to register eligible employees under the ESI scheme, including employees working in companies where shareholders are involved in management roles.

ESI registration is often completed alongside other statutory compliances, such as company incorporation or trademark registration, to ensure smooth business operations and legal adherence.

Employers must stay informed about regulatory updates and ensure timely compliance with the ESI Act through official government portals and recognized digital platforms. Adhering to the Act plays a vital role in safeguarding employee welfare and strengthening India’s social security framework.

Key Provisions of the ESI Act

The ESI Act provides the following benefits:

  • Sickness Benefits: Financial assistance to employees during periods of illness when they are unable to work

  • Maternity Benefits: Paid leave and medical support for women employees during pregnancy and childbirth

  • Disability Benefits: Compensation for temporary or permanent disability caused by employment-related injuries

  • Dependant Benefits: Financial support for dependants in the event of an employee’s death due to a work-related injury

  • Occupational Disease Coverage: Protection and compensation for employees suffering from diseases arising out of their occupation

ESI Registration Fees

Fee Structure for ESI Registration

The cost of ESI registration  varies depending on factors such as the size of the business and the services selected. Generally, the professional fee for ESI registration is approximately ₹1,950. In addition, a Digital Signature Certificate (DSC) may be required, which typically costs around ₹2,400.

Comprehensive ESI registration packages may start from ₹5,999, depending on the scale and requirements of the business establishment.

For businesses with a larger workforce, indicative registration fees may vary as follows:

  • 101 to 300 employees: Approximately ₹750

  • 301 to 500 employees: Approximately ₹1,000

  • Special categories (SC/ST/PWD/Ex-Servicemen): Concessional fee of around ₹250

  • Other categories: Approximately ₹500

Documents and Registration Process

To complete ESI registration, employers must submit required documents through the ESIC portal, including:

  • PAN Card of the business

  • Registration Certificate or Certificate of Incorporation

  • List of employees

Successful registration ensures that employees are eligible for medical care, cash benefits, and other social security protections under the ESI scheme.

Maintaining compliance with the Employees’ State Insurance Act, enacted by the Government of India (भारत सरकार), helps businesses avoid penalties while ensuring employee access to ESIC hospitals and approved medical institutions.

Penalties for Late Payment or Non-Compliance

Failure to register or make timely ESI contributions can attract penalties as outlined below:

  • Delay of less than 2 months: Penalty at 5% per annum

  • Delay of 2 to 4 months: Penalty at 10% per annum

  • Delay of 4 to 6 months: Penalty at 15% per annum

  • Delay of more than 6 months: Penalty at 25% per annum

Timely registration and regular payment of contributions help businesses avoid additional costs and remain compliant with ESI regulations.

Documents Required for ESI Registration

To complete your Employees’ State Insurance (ESI) registration, you need to provide the following documents:

  • Business Registration Certificate
    Registration certificate issued under the Companies Act or the Shops and Establishments Act.

  • Employee Details
    Names, contact details, and Aadhaar cards of all employees.

  • PAN Card of the Business
    PAN issued by the Income Tax Department.

  • Address Proof of the Establishment
    Lease agreement, utility bill, or any other valid proof of the business premises.

  • Bank Account Details
    Bank statement or a cancelled cheque of the business bank account.

  • List of Employees
    Complete details of all employees currently working in the organization.

  • Salary Details
    Monthly salary or wage details of each employee.

  • Nomination Form
    Employee nomination form as required under the ESI scheme.

Step-by-Step Procedure for ESI Registration

Follow the steps below to complete your ESI registration smoothly:

  • Step 1: Visit the ESIC Portal

    Go to the official website of the Employees’ State Insurance Corporation (ESIC) and create an employer account.

  • Step 2: Fill in the Employer Registration Form

    Enter all required business details, including the name of the establishment, address, nature of business, and type of organization.

  • Step 3: Upload Required Documents

    Upload all necessary documents as per ESIC guidelines, such as business registration certificates, PAN, and employee details.

  • Step 4:Review the Information

    Carefully verify all the details entered in the application to ensure accuracy and avoid delays.

  • Step 5:Submit the Application

    Once verified, submit the registration form for processing.

  • Step 6: Receive the ESI Registration Number

    After successful verification and approval, a unique 17-digit ESI registration number will be issued.

  • Step 7: Issue ESI Cards to Employees

    Registered employees will receive ESI cards, which can be used to avail medical and other benefits under the ESI scheme.

Compliances After ESI Registration

Post-Registration Compliances

After registration under the Employees’ State Insurance (ESI) Act, employers must follow certain statutory compliances to remain legally compliant:

  • Maintain an attendance register for all employees

  • Keep a wage register with detailed salary records

  • Maintain an inspection book for verification by authorities

  • Submit monthly ESI challans and returns by the 15th of every month for the previous month’s contributions

  • Maintain an accident register to record any workplace-related accidents

Adhering to these compliances helps businesses avoid penalties, legal issues, and unnecessary inspections.

Regulatory Filing Requirements

Employers are required to file ESI contributions for employees through the ESIC portal every month. Payments must be made within 15 days from the end of each month. Maintaining accurate records—such as salary details, contribution calculations, and payment proofs—is essential to meet ESIC regulatory requirements.

Contribution Periods and Deadlines

The ESI scheme follows fixed contribution and benefit periods as outlined below:

Contribution Periods
  1. 1st April to 30th September

    • Cash Benefit Period: 1st January to 30th June of the following year

  2. 1st October to 31st March

    • Cash Benefit Period: 1st July to 31st December of the same year

Filing Deadlines
  • For the contribution period 1st April to 30th September:
    Return filing deadline – 12th November

  • For the contribution period 1st October to 31st March:
    Return filing deadline – 12th May

Employees must contribute for a minimum of 70 days during a contribution period to qualify for benefits in the corresponding cash benefit period.

Timely filing and accurate compliance are crucial to avoid penalties and ensure that employees can seamlessly access their ESI benefits when required.

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