ESI Registration
Everything you need to know about the Udyam Registration India Program.
What is ESI Registration?
Employee State Insurance (ESI) Registration is a mandatory social security scheme for Indian businesses under the Employees’ State Insurance Act, 1948. It ensures medical, financial, and social security benefits to employees and their dependents. The scheme is regulated by the Employees’ State Insurance Corporation (ESIC), Ministry of Labour and Employment, Government of India.
If your business has 10 or more employees (in some states, 20 employees) with salaries less than ₹21,000 per month, then ESI registration is compulsory. It provides cash benefits, medical care, maternity leave, and disability compensation, helping employees and their families during medical and financial crises.
Benefits of ESI Registration.
- For Employees:
- Medical Benefits – Comprehensive medical care for employees and their families, including outpatient care, hospitalization, and specialist consultations.
- Maternity Benefits – Paid maternity leave for female employees for up to 26 weeks with full salary.
- Disability Benefits – Compensation in case of temporary or permanent disability due to workplace accidents.
- Sickness Benefits – Cash benefits up to 70% of salary for 91 days in case of certified illness.
- Unemployment Allowance – Monthly cash allowance for up to 24 months if an employee loses their job due to business closure or permanent disability.
- Dependent Benefits – Pension support for the dependents of a deceased insured employee.
- Funeral Expenses – ₹15,000 financial aid for the last rites of an insured employee.
- For Employers:
- Legal Compliance – Ensures adherence to labor laws and avoids penalties.
- Improved Employee Retention – Provides security, leading to higher job satisfaction.
- Tax Benefits – Employer contributions to ESI are considered a business expense and can be claimed as deductions.
- Better Business Reputation – Companies registered with ESIC gain trust and credibility among employees and stakeholders.
Documents Required for ESI Registration
- Company Documents:
- Certificate of Incorporation (for Private Limited/LLP/OPC) or Partnership Deed (for Partnership firms).
- PAN Card of the business entity.
- GST Registration Certificate (if applicable).
- Address Proof of Business (Utility Bill/Lease Agreement/Rent Agreement).
- Employer Documents:
- Digital Signature Certificate (DSC) of the employer.
- Bank account details of the company.
- Employee Documents:
- Employee list with details (Name, Date of Joining, Salary, and Designation).
- Aadhaar and PAN Card of employees.
- Salary Statement of employees for the last 6 months.
How to Register for ESI Registration?
- Eligibility Check – Ensure that your business has the required number of employees for ESI applicability.
- Gather Documents – Prepare all required company, employer, and employee documents.
- Online Registration – Apply on the ESIC Portal (www.esic.gov.in) and fill in company and employee details.
- Receive ESI Code – After verification, ESIC provides a 17-digit unique identification number for your company.
- Employee Contribution – Employees contribute 0.75% of their salary, and employers contribute 3.25% towards ESI.
- ESI Cards for Employees – Registered employees receive an ESIC Pehchan Card, allowing them to avail benefits from ESIC hospitals and dispensaries.
Resources for ESI Registration.
- Official Government Resources
- Employees’ State Insurance Corporation (ESIC) Portal – www.esic.gov.in (For registration, compliance, and claim processing)
- Ministry of Labor & Employment – www.labour.gov.in (For labor laws and ESI applicability updates)
- ESIC Regional Offices – Locate the nearest ESIC branch for physical support and documentation
- Legal & Compliance Guides
- ESI Act, 1948 – Understanding the legal framework of the ESI Scheme
- ESI Contribution Guide – Details about employer-employee contribution percentages and payment deadlines
- ESI Benefits Handbook – Comprehensive list of medical, financial, and maternity benefits
- Digital Tools for ESI Compliance
- Online ESI Payment Portal – Employers can pay ESI contributions online through the ESIC Portal.
- E-Returns Filing System – File monthly ESI returns easily on the ESIC website.
- ESIC Helpline Number – 1800-11-2526 (For employer & employee queries)