ESI Registration

What is ESI?

Employees’ State Insurance (ESI) is a self-financed, government-managed social security and health insurance scheme governed by the Employees’ State Insurance Act, 1948. Administered by the Employees’ State Insurance Corporation (ESIC), the scheme provides comprehensive medical care and a range of financial benefits to employees and their dependents, including:

• Medical treatment for the insured and their family members
• Sickness benefits during certified medical leave
• Maternity benefits for female employees
• Disability and dependents' benefits in case of work-related injuries or death
• Funeral expenses and vocational rehabilitation

Who Needs to Register?

ESI registration is mandatory for:

• Establishments employing 10 or more employees (in some states, the threshold is 20)
• Employees earning a gross monthly salary of ₹21,000 or less (₹25,000 for employees with disabilities)

Applicability:

The ESI scheme is applicable to a wide range of establishments, including:

• Factories
• Shops
• Hotels and restaurants (that are not seasonal)
• Cinemas and theaters
• Road transport undertakings
• Educational institutions
• Private medical institutions and hospitals

Documents Required for ESI Registration

To register under ESI, the following documents are necessary:

• PAN card of the business and the proprietor/partners/directors
• Certificate of Incorporation or business registration license
• Proof of business address (electricity bill, property tax receipt, or rent agreement)
• Bank details of the establishment (cancelled cheque or bank statement)
• List of employees with the following details:
• Full name and father's name
• Date of joining and designation
• Salary structure
• Aadhaar number and PAN
• Bank account details and nominee information
• Digital signature of the employer
• Nature of business and total number of employees

Steps for Online ESI Registration

Registering for ESI is a simple online process through the ESIC portal:

• Visit the ESIC Portal
• Click on “Employer Login” and then “Sign Up” to create an employer account
• Fill out Employer Registration Form-1 with relevant business and employee details
• Upload all required documents
• Submit the application and receive a 17-digit ESI Registration Number (also known as ESI Code)
• Upon successful verification, you will be issued an official Certificate of Registration

ESI Contribution Rates (As of 2024)

Note: Employees earning less than ₹176 per day are exempt from employee contribution.

Post-Registration Compliance

Once registered, employers must comply with the following ongoing obligations:

• Monthly ESI contributions must be deducted and deposited by the 15th of the following month
• Half-yearly returns must be filed for the periods April–September and October–March
• Maintain proper employee records and registers as prescribed by ESIC
• Provide newly registered employees with a temporary ESI ID and ensure issuance of the Pehchan card (ESI smart card)

Need Expert Assistance?

At VETRI AUDIT SERVICES PRIVATE LIMITED, we offer end-to-end support for ESI registration, compliance management, and employee record maintenance. Our expert team ensures timely registration, accurate documentation, and ongoing support to keep your business compliant with statutory requirements.

Get in touch today to streamline your ESI compliance journey!.