ESI Registration


ESI Registration

Market Price – Rs: 14,899 

OnlineTaxSeva Price- Rs: 7599 (All Inslusive)

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ESI registration


ESI registration refers to the process of registering for the Employee’s State Insurance (ESI) scheme, which is a social security and health insurance program for employees in India. Under the ESI scheme, both the employer and the employee contribute a certain percentage of the employee’s salary towards a fund that provides various benefits such as medical care, maternity leave, disability compensation, and more. ESI registration is mandatory for companies or businesses that have 10 or more employees, and the registration process involves submitting various documents and information to the relevant authorities.

Benefits of ESI registration:

  1. Medical benefits:
  • ESI registration provides medical benefits to employees and their family members.
  • Medical benefits include consultation, treatment, and hospitalization in ESI hospitals and dispensaries.
  • Medical benefits also include maternity benefits, including paid leave and financial assistance.
  1. Sickness benefits:
  • ESI registration provides sickness benefits to employees who are unable to work due to sickness or injury.
  • Sickness benefits include cash compensation for up to 91 days of absence from work.
  • Sickness benefits can be availed after 2 years of continuous contribution to the ESI scheme.
  1. Disablement benefits:
  • ESI registration provides disablement benefits to employees who suffer from work-related disabilities.
  • Disablement benefits include cash compensation and free medical treatment and rehabilitation.
  • Disablement benefits are provided based on the extent of disability and the employee’s average monthly wages.
  1. Dependent benefits:
  • ESI registration provides dependent benefits to the dependents of deceased employees.
  • Dependent benefits include cash compensation and free medical treatment for dependents.
  • Dependent benefits can be availed by the spouse and children of the deceased employee.
  1. Unemployment allowance:
  • ESI registration provides unemployment allowance to employees who are rendered unemployed due to closure of the establishment, retrenchment or permanent invalidity.
  • Unemployment allowance includes cash compensation for up to two years of unemployment.
  • Unemployment allowance can be availed after two years of continuous contribution to the ESI scheme.
  1. Funeral expenses:
  • ESI registration provides funeral expenses to the family members of deceased employees.
  • Funeral expenses include cash compensation for funeral expenses.
  • Funeral expenses can be availed by the family members of the deceased employee.
importance of esi registration:

ESI registration is important for both employers and employees in India. Some of the key reasons why ESI registration is important are:

  1. Provides healthcare benefits: ESI registration ensures that employees have access to healthcare facilities and medical benefits, including hospitalization, maternity benefits, and sickness benefits. This helps to improve the health and wellbeing of employees, and ultimately increases their productivity.

  2. Compliance with the law: ESI registration is a legal requirement for employers in India with 10 or more employees. Failure to comply with the law can result in penalties and legal action, which can be costly for the business.

  3. Financial protection: ESI registration provides financial protection to employees in case of an emergency, such as illness, disability or death. It helps to alleviate the financial burden on employees and their families during difficult times.

  4. Better employee retention: ESI registration can help to attract and retain talented employees by providing them with better healthcare benefits and financial protection. This can help businesses to build a loyal and motivated workforce.

  5. Improved employer-employee relations: Providing ESI benefits to employees can improve the relationship between employers and employees, and foster a sense of trust and loyalty. This can lead to better communication, increased job satisfaction, and higher productivity levels.

requirements of ESI registration:

The requirements for ESI registration in India are:

  1. Business Registration: The business must be registered under the appropriate act or law, such as the Companies Act or the Partnership Act.

  2. Employee Count: The company must have at least 10 employees working for it. In some states, the minimum employee count required for ESI registration may be higher.

  3. Salary Criteria: The monthly salary of the employees must be less than or equal to Rs. 21,000. Employees who earn more than this amount are not eligible for ESI benefits.

  4. Documents: The following documents are required for ESI registration:

  • PAN card of the business
  • Registration certificate of the business
  • Address proof of the business
  • List of employees with their salary details
  • Bank statement of the business
  • A cancelled cheque of the business bank account
  1. Online Application: The employer must submit an online application for ESI registration through the ESIC portal or by visiting the nearest ESI office.

  2. Compliance: The company must comply with all the rules and regulations under the ESI Act, such as timely payment of contributions and submission of required documents.


ESI Registration FAQ’s

What is the ESI scheme?

The ESI scheme is a comprehensive social security scheme designed to provide social protection to employees in the organized sector against sickness, maternity, disablement, and death due to employment injury.

What is the salary limit in ESI?

The existing wage limit for coverage under the ESI Act is Rs. 21,000 per month w.e.f from 1.01.2017.

Is ESI calculated on basic salary?

The ESI scheme is calculated on the gross salary of 21,000, and if the salary is above 21,000, the ESI will still be constant.

Who is not eligible for ESIC registration?

The ESIC scheme does not cover workers or employees earning more than Rs. 21,000 per month, and for persons with disabilities, the maximum wage is Rs. 25,000.

Is the family of the employee covered under ESIC?

The employee insured person and their family are entitled to avail medical benefits from the very first day of his or her joining the insurable employment.

Is ESI registration mandatory?

Yes, the statutory responsibility of the employer under section 2A of the Act read with regulation 10-B is to register their Factory/ Establishment under the ESI Act within 15 days from the date of applicability to them.

Who is eligible for ESIC registration?

An establishment that has more than ten employees in the organization and has a maximum salary of Rs. 21,000 per month should mandatorily apply for ESI registration under the ESI Act within 15 days.

Can a person have 2 ESI registration?

The contributions paid on insurance numbers cannot be transferred to another number. The ESI number is just like the PSN, which cannot be transferred. The ESIC is advised to continue the same number even if the person is changing employers.

What is the contribution of the employee to ESIC?

Of the total 6.5% for ESI contribution, only 1.75% is deducted from the salary of the employee, and the rest is contributed by the employer.

What are the incentives by the government for ESI members?

The government introduced various healthcare benefits for poor families. Families covered under the NHPS scheme will be able to access medical facilities for medical treatment and their dependents.

Can ESI registration be done online?

Yes, IndiaFilings has been providing ESI registrations across India online. All that is required is to submit the necessary documents.