Employee State Insurance (ESI) Registration: Mandatory for an establihmenet which contains 10 or more employees. Register your business under Employee State Insurance (ESI) and get Employee UAN numbers.

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EMPLOYEE STATE INSURANCE (ESI)

What is Employee State Insurance (ESI):

The Employees’ State Insurance Act was promulgated by the Parliament of India in the year 1948. It was the first major legislation on Social Security in independent India to provide certain benefits to the employees in the organized sector in case of sickness, maternity and employment injury. The Central Government established a Corporation to be known as the ‘Employees’ State Insurance Corporation is the premier social security organization in the country. It is the highest policy making and decision taking authority under the ESI Act and oversees the functioning of the ESI Scheme under the ESI Act.

The Employees’ State Insurance Act, 1948 provides an integrated need based social insurance scheme that would protect the interest of workers in contingencies such as sickness, maternity, temporary or permanent physical disablement, death due to employment injury resulting in loss of wages or earning capacity. The Act also guarantees reasonably good medical care to workers and their immediate dependants.

The contribution payable to the Corporation in respect of an employee shall comprise of employer's contribution and employee's contribution at a specified rate. The rates are revised from time to time. Currently, the employee's contribution rate (w.e.f. 1.07.2019) is 0.75 % of the wages and that of employer's is 3.25% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage upto Rs.176/- (w.e.f. 01.09.2019) are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.

Objective of Employees State Insurance:

  • To provide for certain benefits to employees in case of sickness, maternity and employment injury and to provide for certain other matters in relation there to.

What is the Present Wage Limit to cover an Employee under ESI:

  • The present wage-limit for coverage under the Act, is upto Rs.21,000/- per month (with effect from 1.01.2017).

Contribution Period ~ Benefit Period:

There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under.

  • 1st April to 30th Sept.1st January of the following year to 30th June.

  • 1st Oct. to 31st March 1st July to 31st December of the year following

Who are required to register under ESI:

The ESI Act, (1948) applies to following categories of factories and establishments in the implemented areas. Except Nagaland, Manipur, Tripura, Sikkim, Arunachal Pradesh and Mizoram, all states are covered under ESI.

  • Non-seasonal factories using power and employing ten(10) or more persons.

  • Non-seasonal and non power using factories and establishments employing twenty (20) or more persons.

  • Shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.

Who are not required to register under ESI:

  • Seasonal Factories.

  • Non-seasonal factories using power and employing below 10 persons.

  • Non-seasonal and non power using factories and establishments employing below 20 persons.

  • Shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing below 20 persons.

Who is an Employee as per ESI:

“Employee” according to Section 2(9) as amended by the Employees’ State Insurance (Amendment) Act, 2010 means any person employed for wages in connection with the work of a factory or establishment to which this Act applies and:

  • Who is directly employed by the principal employer on any work of, or incidental or preliminary to or connected with the work of the factory or establishment, whether such work is done by employee in the factory or establishment; or elsewhere, or

  • Who is employed by or through a immediate employer on the premises of the factory or establishment or under the supervision of the principal employer or his agent, on work which is ordinarily part of the work of the factory or establishment or which is preliminary to the work carried on in or incidental to the purpose of the factory or establishment; or

  • whose services are temporarily lent or let on hire to the principal employer by the person with whom the person, whose services are so lent or let on hire, has entered into a contract of service;

Employee does not include an apprentice, any member of the Indian Noval, Military or Air Forces and whose wages are above Rs. 21,000/-.

Employer Responsibilities:

  • Register establishment with ESI on crossing the eligibility threshold – 10/20 or more employees of specified establishment types.

  • Deduct employee share from employee wages, add employer contribution, and administrative charges and remit to ESI. (last date 15th of the month). Make timely payment of ESI dues is in business interest of establishments. Reserve Bank of India had, on 16th April 2012 issued direction to all Scheduled Commercial Banks to ensure on an annual basis that all statutory dues, including ESI dues have been paid by the borrower. Establishments using Bank credit from any Scheduled Commercial Bank are required to furnish an annual certificate to their auditors to this effect.

  • Enrol of all eligible employees on its rolls (regular or contractual) – wages upto Rs 21,000 at the time of joining the establishment.

  • Confirm remittance status of contractual employees belonging to an ESI registered establishment before releasing payment to such contractors. Before making payment to contractor, Principal Establishment should verify whether ESI remittances have been made by contractors. If remittance is not made, deduct the amount from payments being made to contractors and pay to ESI

  • Update family particulars and nomination of all employees who are ESI members.

What are the Benefits Available for Employees

Below are the benefits available for the employees of the establishment.

Sickness Benefit:

It is beneficial for the employees as they get sickness benefit at 70% in the form of salary if they fall in sick.

Medical Benefits:

Medical benefits to the employee and his family are available.

Maternity Benefit:

Woman employees are paid when they are pregnant.

Death & Disability:

If employee death or disability occurs while in service, 90% of the salary is paid to dependents on monthly basis.

How to Register a Business under ESI

Now ESI registration filings for establishments have been simplified through a single window. You can find herein below the Documents required and Step by Step ESI Registration Process.


Documents Required

  • A

    For Proprietorship Business

    1. Proprietor PAN, Aadhaar Card or Voter ID or Passport or Driver's License
    2. Latest passport size photograph
    3. List of Employees and their designations if any
    4. Proprietor Mobile Number
    5. Proprietor Email id
    6. Registered Office Address Proof: Latest Power Bill
    7. No-objection letter cum Affidavit from the Landlord if it is owned.
    8. Rental Agreement from the landlord if the premises are rented.
  • B

    For Other Businesses

    1. Directors or Partners PAN, Aadhaar Card or Voter ID or Passport or Driver's License
    2. Directors or Partners latest passport size photographs
    3. List of Employees and their designations if any
    4. Directors/Partners Mobile Number
    5. Directors/Partners Email id
    6. Partnership Deed in case of Firm
    7. Certificate of Registration of Business
    8. Partnership Deed or MOA, AOA or LLP Agreement
    9. firm/LLP/Company PAN
    10. Board Resolution
    11. Registered Office Address Proof: Latest Power Bill
    12. No-objection letter cum Affidavit from the Landlord if it is owned.
    13. Rental Agreement from the landlord if the premises are rented.

3 Step Registration Process:

  • 1

    Preparation of Documents

    Through CompaniesHouse - One Hour Job

    We will prepare all the documents in order for online uploading with the ESI Department's web portal.

  • 2

    Online Submission

    Through ESI web Portal - One Hour Job

    We will upload the documents with the ESI web portal online and append your digial signature or get the form successfully uploaded with Aadhar authentication.

  • 3

    Certificate of Registration

    Through Online - Under 3 days

    After scrutiny, the Officer will approve the form and issues you the Certificate of Registration Online through their web portal, then you can enroll eligible employees and update their KYC.


What are the Returns to be filed under ESI

The following are the returns to be filed under Employee State Insurance Corporation.

  • 1

    Half Yearly Return - April to September:

    Due Date - 11th November for the Half year from April to September

    Half yearly return for the period from April to September has to be filed before 11th day of November from closure of the said half year.

  • 2

    Half Yearly Return - October to March:

    Due Date - 11th May for the Half year from October to March

    Half yearly return for the period from October to March has to be filed before 11th day of May from closure of the said half year.

Let's Clear Your Doubts


What is ESI?

ESI stands for Employee State Insurance.

Why should we take ESI registratoin?

It is mandatory registratin for certain establishments having 10 (some states 20) or more employees for the purpose of providing medical benefits.

What is the Employee contribution %?

0.75% on salary.

What is Employer contribution %?

3.25% on salary.

Is any employee exempted from payment of ESI contribution?

Employees in receipt of a daily average wage upto Rs.137/- are exempted from payment of contribution.

What is the duration for ESI registration?

It is completely online, you can get in 30 minutes.

What is the government fee for ESI Registration?

ESI registration is completely online, you can regitser it without paying any amount.

Register your business under ESI with us for less! Start here & Save! Contact Now!

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