ESI registration is mandatory for establishments with 10 or more employees in areas notified under the ESI Act, 1948. It covers employees earning up to Rs 21,000 per month. The employer contributes 3.25% and the employee 0.75% of wages, deposited monthly by the 15th. Registration is done online on the ESIC portal.
Who must register
Factories and notified establishments such as shops, hotels, restaurants, cinemas, educational and medical institutions with 10 or more employees in implemented areas must register within 15 days of becoming applicable. Some states apply a threshold of 20.
Benefits to employees
- Medical care for the employee and family
- Sickness, maternity and disablement cash benefits
- Dependants' benefit on employment injury death
- Unemployment allowance under specified schemes
How to register
- Sign up on the ESIC employer portal.
- Fill employer registration form with establishment, ownership and employee details.
- Receive the 17-digit employer code.
- Register employees and generate their insurance numbers.
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- Deposit contributions by the 15th of the following month.
- Maintain attendance, wage and accident registers.
- Report accidents at work within the prescribed time.
Update: the Code on Social Security, 2020
India's four labour codes were brought into force from 21 November 2025. The Code on Social Security, 2020 consolidates the EPF Act, the ESI Act and other social security laws. Core concepts such as provident fund and ESI coverage continue, but definitions of wages, coverage and procedures are governed by the Code and its rules as they are notified. Check the current rules and EPFO or ESIC circulars before relying on older thresholds and forms.
Frequently asked questions
Is ESI applicable to employees earning above Rs 21,000?
No. Employees whose wages exceed Rs 21,000 per month (Rs 25,000 for persons with disability) are outside ESI coverage. If wages rise above the ceiling mid-period, coverage continues until the end of that contribution period.
What is the penalty for late ESI payment?
Late payment attracts simple interest at 12% per annum and damages depending on the period of delay. Persistent default can lead to prosecution of the employer.
Can an employer be both EPF and ESI registered?
Yes. EPF and ESI are separate laws. Many employers are covered under both, with different thresholds and wage limits.
What are ESI contribution periods?
The year is divided into two contribution periods, April to September and October to March, with corresponding benefit periods. Coverage decisions for wage changes follow these periods.
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