Employees' State Insurance (ESIC) Registration
Mandatory Social Security Scheme for Workers Under Ministry of Labour
Mandatory Coverage and Contribution Structure
Key Compliance Factors:
- 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 137/-, they are exempt from contribution, but the employer must still make their 3.25% share.
Establishments Covered Under ESI
Sector Coverage (10+ Employees):
- Shops and Cinemas (including preview theaters).
- Hotels/Restaurants (engaged in sales, without manufacturing).
- Road Motor Transport Establishments.
- News Paper Establishments.
- Private Educational Institutions (run by individuals, trusts, etc.).
- Medical Institutions (Corporate, Joint Sector, Trust, Private Hospitals, Nursing Homes, Diagnostic Centers).
Key Benefits of ESI Registration
Comprehensive Welfare Coverage:
- Medical Benefits: Full medical care for the employee and their family members.
- Sickness Benefits: Paid leave at 70% of salary for certified illness, up to a maximum of 91 days per year.
- Maternity Benefit: Paid leaves for women who are pregnant.
- Funeral Expenses: Financial assistance for funeral costs.
- Dependents' Benefit (Death): If death occurs during work, 90% of the salary is given to dependents every month.
- Disability Benefit: Same 90% salary benefit provided to the employee in case of permanent or temporary disablement due to work.
- Old Age Care: Access to medical expenses even after retirement.
Documents Required for ESI Registration
Essential Documentation:
- Proof of Registration: Certificate under the Factories Act or Shops and Establishment Act.
- Entity Proof: Certificate of Registration (Company) or Partnership Deed (Partnership Firm).
- Constitutional Documents: Memorandum of Association (MOA) and Articles of Association (AOA) of the Company.
- Employee Details: A list of all employees working in the Establishment.
- PAN Cards: PAN Card of the Business Entity and PAN Cards of all Employees.
- Bank Proof: A cancelled cheque of the Company's Bank Account.
- Digital Signature (Class 3).
Simple & Transparent Pricing for Esic Registration
Scale your features as your business grows. Find the plan that fits your needs today.
Basic Plan
- ESIC Registration (employees less than 20).
- Dsc charges are not included in package.
Standard Plan
Every month payment option Available
- 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
- 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.
