ESIC Registration & Compliance
Establishment coverage setup, employee registration, challan preparation, and audit advisory.
What is the ESI Scheme?
Employees' State Insurance (ESI) is a self-financing social security and health insurance scheme designed specifically for Indian workers. It protects employees in the organized sector against financial distress resulting from sickness, maternity, disablement, or death due to employment injury. It also provides medical benefits to the insured employee and their eligible family members.
Eligibility & Coverage Applicability
The Code on Social Security, 2020 applies ESI to all non-seasonal factories employing ten (10) or more persons.
The State Government of Kerala has extended coverage under Section 1(5) of the Act to Shops, Hotels, Restaurants, Cinemas (including preview theaters), Road-motor transport undertakings, Newspaper establishments, Private Medical Institutions, and Educational Institutions employing 10 or more persons.
Wage Ceiling: The monthly wage limit for ESI coverage is set at Rs. 21,000/- per month (Rs. 25,000/- per month for Persons with Disabilities). Employees drawing wages below this threshold must be registered.
ESI Contribution Rates
The contributions are calculated as a percentage of the employee's gross monthly wages:
| Contribution Type | Percentage Rate |
|---|---|
| Employer Contribution | 3.25% |
| Employee Contribution | 0.75% |
| Total ESI Contribution | 4.00% |
Required ESIC Registration Documents
To register an establishment under the ESIC scheme, the following documentation is required:
- ✓PAN Card of the Business Entity
- ✓Shop Act License / Factory License
- ✓Certificate of Incorporation / Registration
- ✓List of all partners or directors with address proof
- ✓Bank Account Details (with cancelled cheque)
- ✓Employee details (date of joining, salary, nominee details)
Payment Deadlines & Penalties
The monthly ESI contribution (Employer 3.25% + Employee 0.75%) must be deposited online through the ESIC portal before the 15th of the succeeding month.
Delayed payments attract 12% annual simple interest; damages are separate and depend on the applicable ESI rule and default period. The legacy 5–25% scale under Regulation 31-C remains subject to the Labour Code transition; verify whether a final replacement rule has taken effect before calculating liability.
ESIC Compliance FAQs
ESIC Solutions We Provide
- New ESI Registration (Obtaining the 17-digit ESI Code)
- Registration of existing employees in the ESIC portal
- Registration of new employees joining during the month (continuous monthly process)
- Updation of exit markers for resigning/terminated employees
- Monthly employee wages uploading and challan preparation for final remittance
- Generation and distribution of e-Pehchan identity cards
- Direct advisory on keeping registers and books ready for inspector verification
- Advice on ESI-related disputes, maternity leaves, and medical reimbursement claims