ESI registration enrols an establishment with the Employees’ State Insurance Corporation (ESIC) and is mandatory once it employs 10 or more people (20 in some states). It gives employees earning up to Rs. 21,000 a month medical, sickness, maternity, and disablement benefits, funded by a small contribution of 0.75% from the employee and 3.25% from the employer. ESI is a key part of an employee’s social security. Samkhya handles your ESIC registration and monthly compliance.
The Employees’ State Insurance scheme is a self-financing social-security and health-insurance scheme administered by the ESIC under the Employees’ State Insurance Act, 1948, now read with the Code on Social Security, 2020. It is mandatory for most establishments employing 10 or more persons (20 in a few states), and covers employees earning gross wages up to Rs. 21,000 a month (Rs. 25,000 for employees with disability). The employer registers on the Shram Suvidha portal, after which the employee and employer contribute 0.75% and 3.25% of wages respectively, a total of 4%. In return, covered employees and their dependants receive medical care and a range of cash benefits during sickness, maternity, and injury.
ESI provides comprehensive benefits:
ESI registration becomes compulsory as follows:
ESI is funded by a small combined contribution:
ESI coverage applies as follows:
ESI registration is done online through the unified Shram Suvidha portal and the ESIC portal. The employer enters the establishment and employee details, after which ESIC issues a 17-digit employer code. Each covered employee is registered and issued an insurance number and an ESI (Pehchan) card, giving access to ESIC dispensaries and hospitals. The employer then deducts the employee’s 0.75% share, adds its 3.25% share, and deposits the total monthly, and files the half-yearly returns for the two contribution periods (April to September and October to March).
For the Establishment:
For the Employer and Employees:
ESI registration follows a clear sequence:
Registering for ESI with Samkhya Corporate Services is simple. Just follow these easy steps:
From there, our team registers you with ESIC, enrols employees, and runs your monthly compliance.
An ESI-registered employer must keep up with compliance:
ESI is funded by a combined contribution of 4% of wages, 0.75% from the employee and 3.25% from the employer, for employees earning up to Rs. 21,000 a month (Rs. 25,000 for those with disability). It is not a tax but a social-security contribution, and in return the employee and their dependants receive comprehensive benefits: full medical care from the first day of insurable employment, cash sickness benefit, maternity benefit, temporary and permanent disablement benefit, dependants’ benefit on death due to employment injury, and funeral expenses. Once an employee is covered in a contribution period, coverage continues to the end of that period even if wages later rise above the limit. The employer is responsible for deducting, adding its share, and depositing the total each month.
| Feature | Detail |
| Administered By | Employees’ State Insurance Corporation (ESIC). |
| Governing Law | Employees’ State Insurance Act, 1948. |
| Threshold | 10 or more employees (20 in some states). |
| Wage Limit | Up to Rs. 21,000 a month (Rs. 25,000 for disability). |
| Employee Share | 0.75% of gross wages. |
| Employer Share | 3.25% of gross wages. |
| Returns | Monthly contribution; half-yearly returns. |
When is ESI registration mandatory?
It is mandatory for most establishments employing 10 or more persons (20 in some states), covering employees who earn gross wages up to Rs. 21,000 a month.
How much is the ESI contribution?
The employee contributes 0.75% of gross wages and the employer 3.25%, a total of 4%, deposited monthly.
What benefits does ESI provide?
It provides medical care for the employee and dependants, plus cash benefits for sickness, maternity, disablement, dependants on death from injury, and funeral expenses.
What is the ESI wage limit?
ESI covers employees earning gross wages up to Rs. 21,000 a month, and up to Rs. 25,000 a month for employees with disability.
What returns must an employer file?
The employer deposits contributions monthly and files half-yearly returns for the April-September and October-March periods.
Does an employee stay covered if wages rise?
Yes. Once covered in a contribution period, the employee remains covered until the end of that period even if wages cross the limit.
