What is ESI?
The Employee State Insurance (ESI) scheme is a self-financing social security and health insurance initiative governed by the ESI Act, 1948, and managed by the Employees’ State Insurance Corporation (ESIC) under the Ministry of Labour and Employment. It ensures medical, monetary, and other benefits to employees and their dependents.
Applicability
Mandatory for establishments with 10 or more employees (20 in some states).
Applies to entities such as:
- Shops
- Restaurants
- Medical & Educational Institutions (in applicable states)
- Transport companies
- Theatres
- Newspaper establishments
Employees earning ₹21,000 or less per month are compulsorily covered under ESI.
Contributions
Contributor
Employee
Employer
Rate
0.75% of wages
3.25% of wages
Key Benefits of ESI
Comprehensive medical care for employees and dependents
- Cash benefits during sickness and maternity
- Access to ESI hospitals and dispensaries across India
- Financial support in case of employment injury or disability
- Reimbursement of medical expenses
Documents Required for Registration
- Certificate under Shops & Establishment Act / Factories Act
- MOA & AOA / Partnership Deed
- PAN & address proof of the business
- List of directors/partners/shareholders
- Employee list with salary details
- Bank statement with proof of operations
- Proof of commencement of production
Registration Procedure
1. Submit Employer’s Registration Form (Form-1) via the ESIC portal.
2. Receive a 17-digit registration number after verification.
3. Upon employee enrollment, an ESI card is issued.
4. Registration is permanent, and updates like new employees must be regularly reported.
ESI Returns Filing
Frequency: Monthly
Mode: Online via ESIC portal
Maintain the following for compliance:
- Attendance Registers
- Wages & Accident Registers
- Form 6 Register
- Monthly Challans
- Inspection Book
Before filing, ensure employee data is updated. Contributions must be paid and challans generated for records and audits.