ESI Registration in India is mandatory for employers who employ a specified number of employees and fall under the coverage of the Employees’ State Insurance Act, 1948. The ESI scheme provides social security benefits such as medical care, sickness benefits, maternity benefits, and compensation for employment injury. In this Saving Mantra guide, we explain what ESI registration is and the step-by-step process for ESI Registration in India in a simple and practical manner.
What is ESI Registration?
ESI Registration is the process through which an employer registers their establishment under the Employees’ State Insurance Corporation (ESIC). Once registered, the employer must contribute to the ESI fund and provide statutory benefits to eligible employees.
Who is Required to Register Under ESI?
ESI registration is mandatory if:
- The establishment employs 10 or more employees (threshold may vary in some states)
- Employees earn a monthly wage of up to ₹21,000 (₹25,000 for persons with disabilities)
- The establishment is a factory, shop, hotel, restaurant, cinema, or commercial office
Benefits of ESI Registration
Benefits for Employees
- Comprehensive medical care for employee and dependents
- Sickness benefit during medical leave
- Maternity benefit for women employees
- Disablement and dependent benefits
- Funeral expenses coverage
Benefits for Employers
- Legal compliance with labour laws
- Enhanced employee satisfaction and retention
- Protection against employee-related medical liabilities
Step-by-Step Process for ESI Registration in India
Step 1: Check Applicability
Confirm whether your establishment meets the employee count and wage threshold under the ESI Act.
Step 2: Gather Required Documents
Collect employer, establishment, and employee-related documents before starting the registration process.
Step 3: Visit ESIC Portal
Access the official ESIC portal and register as an employer by providing basic establishment details.
Step 4: Fill Employer Registration Form
Enter information such as:
- Employer name and address
- Nature of business
- Date of commencement
- Number of employees
- Bank account details
Step 5: Upload Documents
Upload the required documents in prescribed formats for verification.
Step 6: Submit Application and Get Registration Number
After submission, the system generates a 17-digit Employer Code Number, which serves as proof of ESI registration.
Step 7: Register Employees Under ESI
Register eligible employees on the portal to generate Insurance Numbers and ESI cards.
Documents Required for ESI Registration
Employer / Establishment Documents:
- PAN Card
- Address proof of establishment
- Registration certificate or license (Shop Act / Factory License)
- Bank statement or cancelled cheque
Employee Documents:
- Aadhaar Card
- PAN Card
- Salary details
- Date of joining
ESI Contribution Rates
- Employer Contribution: 3.25% of wages
- Employee Contribution: 0.75% of wages
(Subject to change as per government notification)
Post ESI Registration Compliance
- Monthly payment of ESI contributions
- Filing of periodic returns
- Maintenance of employee records
- Timely updating of employee details
Penalty for Non-Compliance
Failure to register under ESI or delayed contribution may lead to interest, penalties, and prosecution under the ESI Act.
Why Choose Saving Mantra for ESI Registration?
- Expert-assisted ESI registration
- Accurate documentation and filing
- Affordable and transparent pricing
- Support for ongoing ESI compliance
- End-to-end professional guidance
Conclusion
ESI Registration in India is a crucial labour law compliance for eligible employers. Following the correct step-by-step ESI registration process ensures employee welfare, legal compliance, and smooth business operations. With Saving Mantra, ESI registration becomes simple, fast, and hassle-free.