ESIC Registration – Process, Benefits, Documents Required

The Employees’ State Insurance Corporation (ESIC) is a statutory organisation operating under the Ministry of Labour and Employment, Government of India. The ESI scheme provides social security coverage to eligible employees through benefits such as medical care, sickness benefits, disability benefits, and dependent benefits. Both employers and employees contribute a specified percentage of wages towards the ESI fund.

What Is ESIC?

ESIC stands for Employees’ State Insurance Corporation, a statutory body established under the Employees’ State Insurance Act, 1948. The ESI scheme provides insurance and social security benefits to eligible employees working in establishments such as factories, shops, hotels, restaurants, road transport establishments, cinemas, newspaper establishments, educational institutions, and private medical institutions. Certain trainees and apprentices may also be covered subject to applicable conditions.

What Is the Eligibility for ESIC Registration?

Generally, non-seasonal factories and specified establishments employing 10 or more persons may come under the ESI scheme, although the applicable employee threshold can vary based on the establishment and applicable notifications. Employees drawing wages up to ₹21,000 per month are generally covered, while the wage ceiling for persons with disabilities is ₹25,000 per month. Covered establishments are required to obtain ESIC registration within the prescribed period from the date the Act becomes applicable to them.

Under the ESI scheme, the employer generally contributes 3.25% of the employee’s wages, while the employee contributes 0.75%. Employees whose average daily wages fall within the prescribed exemption limit are not required to make their share of the contribution.

Which Entities Are Covered Under ESIC?

Various establishments may be covered under the ESI Act depending on the applicable government notification and prescribed conditions. These include:

Establishments Covered Under State Government Notifications

• Shops
• Restaurants and hotels
• Cinemas, including preview theatres
• Road motor transport establishments
• Newspaper establishments not covered under the Factories Act
• Private medical institutions
• Private educational institutions
• Certain employees of municipal corporations and municipal bodies

Where the prescribed employee threshold is met, the applicable establishment may be required to register under ESIC.

Establishments Covered Under Central Government Notifications

The following establishments may also fall within the ESI framework:

• Shops
• Hotels and restaurants
• Road motor transport establishments
• Cinemas, including preview theatres
• Newspaper establishments
• Insurance businesses
• Non-Banking Financial Companies (NBFCs)
• Port trusts
• Airport authorities
• Warehousing establishments

The applicable employee threshold and coverage requirements depend on the nature of the establishment and the relevant notification issued under the ESI Act.

What Are the Benefits of ESIC Registration?

ESIC registration provides employees with various social security and insurance benefits. Some of the key benefits include:

• Sickness Benefit: Employees may receive a benefit of around 70% of their average daily wages for a maximum of 91 days in a benefit period, subject to the applicable conditions.
• Extended Sickness Benefit: Eligible employees suffering from specified long-term or malignant diseases may receive benefits for an extended period, subject to prescribed conditions.
• Enhanced Sickness Benefit: Employees undergoing sterilization procedures for family planning may receive benefits at the full wage rate for the prescribed period.
• Medical Benefits for Employees: ESIC provides medical treatment and related healthcare benefits to insured employees and eligible family members.
• Medical Benefits for Retired Employees: Eligible retired employees and their spouses may continue to receive medical benefits subject to the applicable conditions and contribution requirements.
• Maternity Benefit: Eligible insured women can receive maternity benefits at the prescribed rate, including paid leave for the applicable maternity period.
• Dependants’ Benefit: Where an insured employee dies due to an employment injury or occupational hazard, eligible dependants may receive periodic payments based on the prescribed percentage of wages.
• Temporary Disablement Benefit: Employees suffering temporary disablement due to an employment injury may receive benefits at the prescribed rate for the period of disablement.
• Permanent Disablement Benefit: In cases of permanent disablement arising from employment injury, periodic benefits may be provided based on the extent of loss of earning capacity assessed under the applicable rules.
• Funeral Expenses: A prescribed amount is provided towards funeral expenses to eligible dependants or the person who performs the last rites of the insured employee.

What Is the Registration Process for ESIC?

ESIC registration is carried out online through the ESIC portal. The general registration process involves the following steps:

Step 1: Register on the ESIC Portal

The employer first needs to access the ESIC portal and select the “Employer Login” option. The employer can then choose “Sign Up”, enter the required information, and submit the registration request.

Step 2: Receive the Confirmation Email

After submitting the sign-up details, a confirmation message is sent to the registered email address and mobile number. The communication contains the login credentials required to access the ESIC employer portal.

Step 3: Complete Employer Registration Form-1

Using the credentials received, the employer can log in through the “Employer Login” section and select “New Employer Registration.” The appropriate type of unit is selected from the available options.

The employer then completes Form-1 by providing the required information, including details of the establishment, employer, factory or business unit, and eligible employees. After reviewing the information, the form is submitted online.

Step 4: Make the Required Payment

After submission of Form-1, the portal provides the applicable payment option. Where an initial contribution is required, the employer can select “Pay Initial Contribution” and proceed with the online payment process.

The applicable challan details are generated on the portal. The employer should note the challan number and proceed to the payment gateway to complete the payment through the available online payment method.

Step 5: Receive the Registration Letter

After successful completion of the registration and applicable payment formalities, the ESIC system generates the registration letter, commonly referred to as Form C-11. The letter contains the employer’s unique ESIC registration number and serves as evidence of registration with ESIC.

What Are the Documents Required for ESIC Registration?

Q- Can an employee continue to receive ESI benefits after leaving a job?
Certain ESI benefits may continue after employment ends, depending on the type of benefit, contribution history, and applicable eligibility conditions. Employees should check the specific requirements for the benefit they intend to claim.

• Registration certificate under the applicable Shops and Establishments Act or Factories Act.
• Certificate of incorporation or constitution documents, depending on the type of entity, such as:
  • Company registration certificate
  • Partnership deed
  • GST registration certificate
  • Memorandum of Association (MOA) and Articles of Association (AOA)
• Address proof of the establishment, such as:
  • Electricity, gas, or telephone bill issued within the prescribed period
  • Rental or lease agreement
  • Property tax receipt
• Employee-related information, including:
  • List of employees
  • PAN details of the establishment and employees
  • Salary or compensation details
  • Employee attendance records
• Cancelled cheque from the establishment’s bank account
• List of directors of the company
• List of shareholders of the company

What Compliances Are Required After ESIC Registration?

After obtaining ESIC registration, the establishment needs to maintain various records and fulfil the applicable compliance requirements. These generally include:

• Maintaining employee attendance records
• Maintaining wage registers
• Maintaining the inspection book
• Depositing monthly ESIC contributions and applicable challans within the prescribed due date
• Maintaining records of accidents occurring at the establishment

Which Returns Are Required to Be Filed After ESIC Registration?

ESIC-registered establishments are required to comply with the applicable return and contribution requirements. Records that may be required for ESIC compliance include:

• Employee attendance register
• Form 6 or applicable employee register
• Wage register
• Accident register
• Monthly contribution records and challans

We hope this article has helped you understand ESIC registration, its benefits, required documents, and ongoing compliance requirements. If you need assistance with registration or statutory compliance, professional support can help ensure that the applicable requirements are completed accurately and on time.

Disclaimer

This content is for informational purposes only and reflects provisions of the Income Tax Act as amended up to FY 2025–26. Please consult a Chartered Accountant for professional advice.

Frequently Asked Questions

Q- Who is eligible for ESIC benefits?
Employees covered under the ESI Scheme and their eligible family members can receive benefits subject to the applicable conditions. Benefits may include medical care, sickness benefit, maternity benefit, disablement benefit, and dependants’ benefit.

Q- How can I apply for ESI benefits?
Eligible insured persons can claim applicable ESI benefits through the ESIC system or by approaching the concerned ESIC branch office. Depending on the benefit, supporting documents such as medical records, Aadhaar details, bank account information, or other prescribed documents may be required.

Q- What is the salary limit for ESI coverage?
Generally, employees earning wages up to ₹21,000 per month are covered under the ESI Scheme. For employees with disabilities, the wage ceiling is generally ₹25,000 per month. If an employee’s wages cross the prescribed limit after the contribution period has started, coverage generally continues until the end of that contribution period, subject to the applicable rules.

Q- How many employees are required for ESI registration?
ESI coverage generally applies to factories employing 10 or more persons and to other establishments covered by the applicable notifications. The exact applicability can vary depending on the nature of the establishment and the relevant state or central notification.

Q- What happens if an employer does not pay ESIC contributions on time?
Late payment of ESIC contributions can result in interest and damages under the applicable ESIC provisions. Continued default may also lead to recovery proceedings and other legal consequences. Employers should therefore deposit contributions within the prescribed due date.

Q- What is an ESI Code Number?
The ESI Code Number is a unique identification number allotted to an employer or establishment registered under ESIC. It is used for identifying the employer and managing ESI-related compliance and contributions.

Q- Is ESI registration mandatory for employers?
Yes. Employers covered by the ESI Act are required to register with ESIC and comply with the applicable contribution and filing requirements. The coverage threshold depends on the type of establishment and the applicable rules in the relevant state or area.

Q- What is an ESI Insurance Number?
An ESI Insurance Number is a unique number allotted to an insured employee under the ESI Scheme. It remains associated with the insured person’s ESI record and is used to access eligible benefits and services.

Q- How can an employee check their ESI registration online?
An insured employee can use the ESIC online services to access their insurance-related information. The employee generally needs the Insurance Number and other authentication details required by the ESIC portal.

Q- What are the main benefits available under the ESI Scheme?
The ESI Scheme provides several benefits, including medical benefit, sickness benefit, maternity benefit, disablement benefit, dependants’ benefit, funeral expenses, and rehabilitation-related benefits, subject to the eligibility conditions prescribed under the scheme.

Q- Is there any ESI contribution exemption for low-paid employees?
Employees whose average daily wages are within the prescribed threshold may be exempt from paying the employee’s share of ESI contribution, while the employer’s contribution continues as applicable. The wage threshold should be checked according to the rules applicable for the relevant period.

Q- Is ESI contribution deducted from an employee’s salary?
Yes. Where an employee is covered under the ESI Scheme, the employee’s prescribed contribution is deducted from wages, while the employer contributes its prescribed share. The applicable contribution rates are determined under the ESI rules.

Q- What happens if an employee’s salary exceeds ₹21,000 per month?
If an employee’s wages exceed the prescribed wage ceiling during an ongoing contribution period, the employee generally continues to remain covered until the end of that contribution period, subject to the applicable ESIC rules. Coverage for subsequent periods depends on the employee’s wages and eligibility.

Q- Can an employee continue to receive ESI benefits after leaving a job?
Certain ESI benefits may continue after employment ends, depending on the type of benefit, contribution history, and applicable eligibility conditions. Employees should check the specific requirements for the benefit they intend to claim.

Q- What is the maximum duration of ESI sickness benefit?
Sickness benefit is generally available for up to 91 days in two consecutive benefit periods, subject to the prescribed contribution and eligibility conditions. Extended sickness benefit may be available for certain specified long-term diseases under applicable rules.

Q- Can an employee claim medical treatment through ESIC?
Yes. An eligible insured person and eligible family members can receive medical benefits through ESIC’s network of dispensaries, hospitals, and other authorized healthcare facilities, subject to the applicable rules.

Q- Why is timely ESIC compliance important for employers?
Timely ESIC registration, contribution payments, employee enrollment, and statutory compliance help employers avoid interest, damages, penalties, and other regulatory consequences while ensuring that eligible employees can access ESI benefits.

Q- Is ESI applicable to contractual and temporary employees?
Employees engaged through contractors or on temporary arrangements may also fall under ESI coverage if they satisfy the applicable eligibility conditions and work in an establishment covered by the ESI Scheme. Employers should evaluate coverage based on the nature of employment and applicable regulations.

Q- What documents are required for ESIC registration?
Employers may need documents such as PAN, business registration details, address proof, bank details, employee information, ownership or incorporation documents, and other details required by ESIC. The exact requirements depend on the type of establishment.

Written by

Asha Ahuja Sethi (Head Admin at Jatin Sethi & Co., Chartered Accountants)