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ESIC Registration: Eligibility, Process and Documents Required for Employers

  • February 7, 2025
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  • Vishaal Consultancy Services
esic registration

Table of Content

Introduction
What is ESIC?
Who is Eligible for ESIC?
Procedure for ESI Registration
Benefits of ESIC for Employers and Employees 
Conclusion
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Introduction

For a business owner, navigating the labour laws is as important as planning your business strategies. ESIC registration is not only crucial for compliance with the laws to avoid penalties but also to ensure that your employees get the social security benefits that the ESIC scheme has to offer. In this blog, we will thoroughly address the key questions such as what is ESIC, discuss ESIC eligibility criteria and more. By end of it, we hope to provide you the clarity on ESI registration process and the advantages of the scheme.

What is ESIC?

The Employees State Insurance Corporation, popularly known as ESI, is a statutory body that was established under the Employees’ State Insurance (ESI) Act 1948. It is administered by the Ministry of Labour and Employment. The primary objective of this scheme is to provide social security in the form of health benefits to all employees listed in the organised sectors by offering them medical and financial assistance during difficult times.

esic registration

Who is Eligible for ESIC?

Now let’s look at the ESIC eligibility criteria in detail and find out who is eligible for ESIC registration.

The primary factors are the number of workers employed in your organisation /  establishment and their gross wages/salary. If you have 10 or more employees (20 in some states) on your payroll, and they earn a gross monthly salary of or below ₹21,000 (₹25,000 for employees with disability), then you are obligated to register for ESIC. This holds good for a wide array of sectors, including factories, hotels and restaurants, road transport, education institutes, private medical facilities etc.

The salary cap mentioned above is also crucial determinant of the ESIC eligibility. This is to ensure that all the employees, regardless of their positions, can have access to the essential healthcare benefits.
Now let’s break down the contribution towards ESIC.
  • A total 4% of the employees’ wages are contributed towards ESIC
  • Employers must contribute 3.25% of the employee’s wages
  • Employee must also contribute a 0.75% deduction from their salary
If your business meets these criteria, it is vital for you to not neglect the registration to prevent any legal repercussions.
who is eligible for esic
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Procedure for ESI Registration

The following the step-by-step guide on how to register ESIC for employer could be followed as it is fully online and can be completed through the ESIC portal.

Step 1- Visit the ESIC Portal

Start by going to the official ESIC website (www.esic.gov.in) and click on the ‘Employer Login’ button.
In the login window, select the ‘Sign Up’ option to create your account.

Step 2: Fill in Business Details

Enter information such as company name, employer’s name, region, contact details and confirm the establishment by checking the box before submitting the details.

Step 3: Receive Login Credentials

Once you submit the details, you will receive your login credentials via the registered email ID.

Step 4: Complete the Registration Form

Log in using the credentials received and click on the New Registration. Fill in select the type of unit (factory or shop/establishment). This will lead you to Employer Registration- Form 01.
Carefully fill in all the details including relevant PAN details, address, nature of business/category, license details, present employee strength etc.

Step 5: Upload Required Documents

Upload the necessary documents for ESI registration for employers (listed below) and submit the form.

Step 6: Make the First Payment

Once the form is submitted, you will need to make an initial contribution of 4% of an employee’s gross salary, as mentioned above.

Step 7: Generate ESIC Number

This brings us to the question how to generate ESIC number.
In the last step of ESI registration process, the system will automatically generate a 17-digit ESIC registration number after the successful payment completion. This will serve as your unique identification for all ESI-related transactions.
procedure for esi registration

Documents Required for ESI Registration for Employer

To finalise the ESI registration process, you will need to provide the following documents required for ESI registration for employer-
  • Certificate of Incorporation (proof of registration for Company/LLP/Partnership/Proprietorship)
  • PAN card of the business entity
  • GST registration certificate
  • Proof of address (such as an electricity bill, rental agreement, or property tax receipt)
  • A list of employees along with their salary details
  • A cancelled cheque from the company’s bank account
  • Digital signature of the employer

Benefits of ESIC for Employers and Employees 

Now that we understand who is eligible for ESIC and the procedure for ESI registration, let’s discuss the benefits for both employers and employees under this scheme.

Benefits for Employers

  • Registering for ESIC helps businesses meet labour law requirements, stay compliant with legal obligations and avoid penalties.
  • Offering social security benefits fosters a greater employee loyalty, enhances employee satisfaction and helps reduce the turnover rates.
  • Employers only need to contribute 3.25% of their employee’s wages as the rest of the benefits are covered by ESIC, reducing financial burden.
  • The medical coverage provided by this scheme supports employees to be healthier and more productive.
  • If an accident or fatality occurs, the ESIC takes care of the expenses and provides compensation, further lessening the employer liability.

Benefits for Employees

  • Employees and their families get an easy access medical care at ESIC dispensaries and hospitals throughout India.
  • If employees are not able to work due to prolonged illness, they can receive 70% of their salary for a period of up to 91 days.
  • Female employees are eligible for paid maternity leave for up to 26 weeks.
  • If faced by a temporary or permanent disability, ESIC registration paves way for monthly compensation to the employee.
  • If an employee dies in a workplace accident, their dependents are entitled to receive 90% of their monthly salary as compensation with a lumpsum of ₹15,000.

Conclusion

As a business owner, it is paramount to understand that ensuring ESIC registration is not just a measure for you to avoid legal penalties, but it’s also a crucial step in safeguarding your employees’ healthcare.
It is important to understand that ensuring ESIC registration is not just a legal obligation but a pivotal step in safeguarding your employees’ healthcare. If you are still wondering how to register ESIC for employer, Vishaal Consultancy Services has the solution.

In our journey of over 30 years, we have helped multiple organisations benefit from our PF and ESI management services, including handling employee accounts, managing withdrawals and transfers, and ensuring on-time processing of ESI claims. Our expertise guarantees that employees receive maximum benefits while helping our clients, the employers, navigate the complexities with ease.

Need help with ESIC registration?
Contact us today! 

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