ESI Registration & Compliance Guide 2026
Complete guide to Employees\u2019 State Insurance (ESI) registration, contribution rates, wage limits, benefits, and compliance requirements for employers in India.
What is ESI?
The Employees’ State Insurance (ESI) Scheme is a social security scheme administered by the Employees’ State Insurance Corporation (ESIC) that provides medical, sickness, maternity, disability, and dependent benefits to employees and their families.
Applicability & Wage Limits
ESI applies to:
- All factories employing 10 or more persons (power-using) or 20 or more persons (non-power-using)
- Shops, hotels, restaurants, cinemas, road transport establishments, and newspaper establishments employing 10 or more persons
- Educational institutions and medical institutions notified by the appropriate government
The current ESI wage ceiling is Rs. 21,000 per month (Rs. 25,000 for persons with disability). Employees earning up to this threshold are covered under the ESI scheme.
ESI Contribution Rates
| Contributor | Rate |
|---|---|
| Employer Contribution | 3.25% of wages |
| Employee Contribution | 0.75% of wages |
| Total | 4.00% of wages |
Note: For employees earning up to Rs. 137 per day, only the employer contributes (no employee contribution).
ESI Registration Process
- Check Applicability: Verify if your establishment falls under ESI coverage based on employee count and wage limits.
- Online Registration: Register on the ESIC portal (www.esic.gov.in) by filling Form-01 and submitting required documents.
- Documents Required: PAN card, address proof, list of employees, partnership deed/MOA-AOA, registration certificate, bank statement.
- Generate Code Number: After verification, ESIC generates a 17-digit code number for the employer.
- Employee Registration: Register all eligible employees and generate their ESI cards (Pehchan Card).
- Monthly Compliance: File monthly contributions through ESIC Challan before the 15th of each month.
Benefits Under ESI
Medical Benefits
Full medical care for insured persons and their families from day one of employment.
Sickness Benefits
70% of wages for up to 91 days during certified sickness in a benefit period.
Maternity Benefits
100% of wages for 26 weeks of maternity leave.
Disablement Benefits
Lifetime pension for permanent disablement due to employment injury.
Dependent Benefits
Monthly pension to dependents in case of death due to employment injury.
Funeral Expenses
Funeral expenses of up to Rs. 15,000 to the eldest surviving family member.
Due Dates & Filing
- Monthly Contribution: Pay ESI contributions by the 15th of the following month.
- Half-Yearly Return:File half-yearly returns by 12th May (October–March) and 11th November (April–September).
- Late Payment: Interest at 12% per annum for delayed contributions.
Penalties for Non-Compliance
- Fine up to Rs. 1,00,000 and/or imprisonment up to 2 years for failure to pay contributions.
- Fine up to Rs. 10,000 for failure to submit returns or maintain records.
- Interest at 12% per annum on delayed contributions.
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