ESI Registration in India

Employees’ State Insurance (ESI) Registration is compulsory for all organizations in India employing 10 or more employees. This scheme, established under the Employees’ State Insurance Act, 1948, is managed by the Employees’ State Insurance Corporation (ESIC). It provides social security and healthcare benefits to employees and their families in cases of sickness, maternity, disablement, or death due to employment-related injury.

Any employee earning wages of less than ₹21,000 per month (₹25,000 for persons with disabilities) is covered under the ESI scheme. The scheme is funded through contributions from both employers and employees. The current contribution rates are 4.75% of wages by the employer and 1.75% of wages by the employee, making a total contribution of 6.5%.

Advantages of ESI Registration

• Medical Aid – Comprehensive medical care for insured employees and their family members from day one of employment.
• Maternity Benefit – 26 weeks of paid maternity leave, extendable by 1 month on medical advice, at the rate of full wages (subject to contribution for at least 70 days in the preceding two contribution periods).
• Disablement Benefit – 90% of wages paid as compensation in case of temporary or permanent disablement due to employment injury.
• Sickness Benefit – 70% of wages paid for up to 91 days in a year, subject to medical certification.
• Death Benefit – In case of death due to employment injury, 90% of wages are paid to the dependents of the employee.
• Funeral Expenses – A sum of ₹10,000 is payable to dependents or the person performing the last rites of the deceased insured employee.
• Confinement Expenses – Coverage for insured women or wives of insured persons in areas where ESI medical facilities are unavailable.
• Rehabilitation Benefits – Vocational and physical rehabilitation support for insured persons with permanent disabilities.
• Old Age Medical Care – Retired insured persons and their spouses are eligible for continued medical care on payment of a nominal annual contribution of ₹120.

Documents Required for ESI Registration

• For Employers:
  • Self-attested copy of PAN Card of the business (mandatory)
  • Address proof of the business premises
  • Bank statement/cancelled cheque of the business account
  • Certificate of Incorporation / MOA & AOA / Partnership Deed / Trust Deed (as applicable)
  • Registration/license under Shops & Establishments Act or Factories Act
  • Copy of Board Resolution (in case of companies)
  • List of directors/partners/shareholders with details
  • Details of employees – including their salary, designation, and date of joining
  • Date of commencement of business or production evidence
• For Employer’s Identity & Address Proof:
  • PAN Card
  • Aadhaar / Passport / Driving License (any one)
  • Self-attested copy of Telephone/Mobile or Electricity bill (not older than 2 months)
  • Registered Title Deed or Rent Agreement with No Objection Certificate (NOC), if rented

Compliance & Taxation Perspective

• Every employer registered under the ESI Act must file periodic ESI returns and pay contributions within the prescribed due dates.
• Non-compliance attracts penalties and interest as per Section 85 of the ESI Act.
• ESI contributions are treated as business expenses and allowed as a deduction under the Income Tax Act, 1961.
• Labour authorities closely monitor ESI compliance during inspections and assessments, making timely registration and filings essential.

Why Choose Taxation Point India?

At Taxation Point India, we provide hassle-free and end-to-end assistance for ESI Registration and Compliance. Our experts ensure smooth processing of your registration, timely filing of returns, and compliance with statutory requirements to avoid penalties.

We also provide professional support for:

• GST Registration & Filing
• PF Registration
• Professional Tax Registration
• MSME (Udyam) Registration
• Digital Signature Certificates (DSC)
• TAN & PAN Registration
• Trade License & FSSAI License

👉 Get a free consultation today with Taxation Point India and ensure your business remains 100% compliant with ESI laws in India.