Employees' State Insurance
(ESIC) Registration
Mandatory Social Security Scheme for Workers Under Ministry of Labour. Expert-assisted registration for establishments with 10+ employees.
Medical & Cash Benefits
Full medical care for employees and family members under ESI scheme.
Contribution Structure
Employer: 3.25% | Employee: 0.75% of monthly salary.
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Mandatory Coverage & Contribution Structure
Statutory applicability and contribution rates under ESI Act 1948
- Mandatory Registration: Any company having 10 or more employees (or 20 in some states) must mandatorily register with the ESIC.
- Salary Limit: The mandatory limit applies to employees earning a maximum salary of Rs 21,000/- per month.
- Employer Contribution: The employer must contribute 3.25% of the employee's total monthly salary.
- Employee Contribution: The employee contributes only 0.75% of their monthly salary.
- Exemption Note: If an employee's daily average wage is up to Rs 176/-, they are exempt from contribution, but the employer must still make their 3.25% share.
Establishments Covered Under ESI
- Shops and Cinemas (including preview theaters)
- Hotels/Restaurants (engaged in sales, without manufacturing)
- Road Motor Transport Establishments
- News Paper Establishments
- Private Educational Institutions
- Medical Institutions (Hospitals, Nursing Homes, Diagnostic Centers)
Employee Benefits
- Medical Benefits (full family coverage)
- Sickness Benefit (70% salary, up to 91 days)
- Maternity Benefit (paid leave)
- Dependents' Benefit (90% wages for family)
- Disability & Funeral Expenses
Employer Benefits
- Legal compliance & penalty protection
- Reduced liability for maternity & injury costs
- PwD hiring incentives (govt. covers contribution)
- Tax deductions on ESI contributions
ESIC Return Due Dates & Penalties
Due Dates
- Monthly contribution: 15th of next month
- Half-yearly (Apr-Sep): Nov 11th
- Half-yearly (Oct-Mar): May 11th
Penalties for Non-Compliance
- Non-registration: 3 years imprisonment + Rs 10,000 fine
- Late return filing: 2 years imprisonment
- Interest @12% per annum on delayed payment
Documents Required
- Proof of Business Registration (Factories Act or Shops & Establishment Act)
- Certificate of Incorporation / Partnership Deed
- Proof of Business Address
- MOA & AOA (for Companies)
- PAN Cards (Entity & Employees)
- List of all employees with salary details
- Cancelled Cheque of Business Bank Account
- Class 3 Digital Signature Certificate (DSC)
Quick Consultation
Choose Your Plan
Professional solutions tailored for Esic Registration
Basic Plan
Prices are inclusive of GST
- ESIC Registration (employees less than 20).
- Dsc charges are not included in package.
- ESIC Return for 1 year.
Standard Plan
Every month payment option Available. Prices are inclusive of GST
- ESIC Registration (employees less than 20)
- ESIC Return for 1 year.
- Dsc charges are not included in package.
Premium Plan
Every month payment option Available. Prices are inclusive of GST
- ESIC Registration (employees less than 50)
- ESIC Return for 1 year.
- Dsc charges are not included in package.
FAQ's on Employees' State Insurance (ESIC)
Your Questions Answered
When does ESIC registration become mandatory for an establishment?
ESIC registration is mandatory for all non-seasonal factories and establishments (including offices, shops, restaurants, cinema halls, etc.) where 10 or more persons are employed. This applies to most states and Union Territories.
Which employees are covered under the ESIC scheme?
All employees drawing a monthly salary of up to ₹21,000 (Basic pay + DA, etc.) are covered under the scheme. For persons with disabilities, the wage limit for coverage is ₹25,000 per month.
What is the current mandatory contribution rate for ESIC?
The total contribution is calculated on the employee's gross monthly wages. The current rates are: Employer's Contribution (3.25%) and Employee's Contribution (0.75%), totaling 4.00% of the wages.
What are the primary benefits provided by the ESIC scheme to the employees?
ESIC provides comprehensive social security, including: 1) Sickness and Medical benefits, 2) Maternity benefits, 3) Disablement benefits, 4) Dependent benefits (in case of death due to employment injury), and 5) Funeral expenses.
What is the unique identification number given to the employer and the employee?
The employer is provided with a unique ESIC Code Number. The employee is issued an Insurance Number and a Pehchan Card (e-Pehchan Card) to access medical facilities and benefits.
What is the due date for the monthly ESIC contribution and return filing?
The employer must deposit the combined contribution (employer's and employee's share) with the ESIC Department by the 15th of the succeeding month. Quarterly or half-yearly returns must also be filed electronically.
What is the penalty for late or non-payment of ESIC dues?
Late payments attract simple interest at the rate of 12% per annum for each day of delay. Continued default or non-compliance can lead to penal actions, prosecution, and the recovery of arrears under the Revenue Recovery Act.
Can an establishment with fewer than 10 employees voluntarily register for ESIC?
Yes. Establishments not mandatorily covered (fewer than 10 employees) can apply for Voluntary Coverage under the ESIC Act. Once voluntarily registered, the provisions of the Act become mandatory for that establishment and its employees.
