ESI Registration in India is a mandatory compliance for eligible employers to provide social security and health insurance benefits to employees. Governed by the Employees’ State Insurance Act, 1948, ESI ensures medical care, cash benefits, and income protection to workers during sickness, maternity, disability, or employment injury.
In this Saving Mantra guide, we explain what ESI registration is and the step-by-step process for ESI Registration in India, including eligibility, documents, and post-registration compliance.
What is ESI Registration?
ESI Registration is the process by which an employer registers under the Employees’ State Insurance Corporation (ESIC) to provide statutory benefits to employees earning wages up to the prescribed limit. Once registered, both employer and employee contribute a fixed percentage of wages to the ESI scheme.
Who Needs ESI Registration in India?
ESI registration is mandatory for:
- Establishments employing 10 or more employees
- Employees earning up to ₹21,000 per month (₹25,000 for persons with disability)
- Factories, shops, hotels, restaurants, cinemas, hospitals, and service providers (state-specific applicability)
Benefits of ESI Registration
Benefits to Employees
- Free medical treatment for self and dependents
- Sickness benefit (cash compensation)
- Maternity benefit
- Disablement benefit
- Dependants’ benefit in case of death due to employment injury
Benefits to Employers
- Statutory compliance and legal protection
- Improved employee welfare and retention
- Avoidance of penalties and prosecution
ESI Contribution Rates
- Employer Contribution: 3.25% of wages
- Employee Contribution: 0.75% of wages
(Rates as applicable under current ESIC norms)
Step-by-Step Process for ESI Registration in India
Step 1: Collect Employer and Employee Details
Keep all business, employee, and bank-related details ready before starting the registration.
Step 2: Register on ESIC Portal
Visit the official ESIC portal and select Employer Registration.
Step 3: Fill Employer Registration Form
Provide details such as:
- Establishment name and address
- Nature of business
- Date of commencement
- Employer PAN and contact details
Step 4: Enter Employee Details
Add employee information including:
- Name and date of joining
- Salary details
- Aadhaar and family details
Step 5: Upload Required Documents
Upload supporting documents in the prescribed format.
Step 6: Submit Application
Submit the ESI registration form online.
Step 7: Allotment of ESI Code Number
After verification, the ESI Code Number is generated, completing registration.
Documents Required for ESI Registration
- PAN Card of employer
- Certificate of incorporation / business registration
- Address proof of establishment
- Bank account details
- List of employees with salary details
- Digital Signature Certificate (if applicable)
Post ESI Registration Compliance
- Monthly payment of ESI contributions
- Filing of ESI returns
- Maintenance of employee records
- Issuance of ESI numbers to employees
- Compliance with inspections and audits
Due Dates for ESI Contribution
- ESI contribution must be paid on or before 15th of the following month
Penalty for Non-Compliance
Failure to register or deposit ESI contributions may result in:
- Interest and late fees
- Heavy penalties
- Legal prosecution
- Disallowance of business expenses
Why Choose Saving Mantra for ESI Registration?
- Expert handling of ESIC compliance
- Accurate employer and employee registration
- Transparent and affordable pricing
- Quick turnaround time
- End-to-end payroll and labour law support
Conclusion
ESI Registration in India is a crucial statutory requirement that safeguards employees and ensures employer compliance. By following the correct step-by-step ESI registration process, businesses can provide essential social security benefits and avoid legal risks. Saving Mantra ensures a smooth, compliant, and hassle-free ESI registration experience.
Disclaimer
The information provided in this blog is for general informational purposes only and does not constitute legal, tax, or professional advice. ESI rules, wage limits, contribution rates, and procedures may change as per government notifications. Readers are advised to consult qualified professionals before applying for ESI Registration or making compliance decisions.