ESIC employer registration: coverage, contributions and process

Coverage under the Social Security Code

The ESI Act, 1948 was subsumed into the Code on Social Security, 2020, effective 21 November 2025. The ESI chapter applies to establishments with 10 or more employees, and the government can extend it to establishments with fewer employees in hazardous or life-threatening occupations. ESIC asked uncovered establishments to register in December 2025, and later clarified that full implementation of the Code's provisions depends on the notified rules and regulations. Existing registrations continue. Employers should watch for the ESIC regulations under the Code, which may change forms and procedures.

Who is covered and contribution rates

Employees whose wages do not exceed ₹21,000 a month (₹25,000 for persons with disability) are covered. Contributions are 3.25% of wages from the employer and 0.75% from the employee. Employees earning up to a low daily wage threshold are exempt from their share, while the employer still pays. Contributions are paid monthly by the 15th of the following month through the ESIC portal, and contribution periods and benefit periods are tracked half-yearly.

Documents typically needed

After registration, the employer receives a 17-digit employer code and registers each employee to generate an insurance number and e-pehchan card. New employees should be registered from their date of joining so that they are covered from day one.

• PAN and registration documents of the establishment
• Address proof of each location
• Details of directors, partners or proprietor
• Bank account details
• List of employees with wages and date of joining
• Date on which the threshold of 10 employees was crossed

Benefits for employees

Covered employees and their families get medical care through ESIC hospitals and dispensaries, cash benefits during sickness, maternity benefit, disablement and dependants' benefits for employment injury, and unemployment allowance in certain cases. Employers benefit too, as covered employees' employment injury claims are handled by ESIC rather than directly by the employer under the compensation law.

For employers, timely registration is also a risk-management step. If an uncovered employee suffers an employment injury, the employer may have to bear the compensation directly and ESIC can recover the cost of benefits it later provides.

Ongoing compliance after registration

Registered employers must pay contributions monthly, register new joiners immediately, report employment injuries through the portal within the prescribed time, and maintain attendance and wage records. ESIC returns are generally filed half-yearly through the portal based on the monthly contributions.

When the establishment opens a branch in another state or region, it should register the branch under the same employer code through the portal so that employees there are covered.

Common mistakes and consequences

Common errors include delaying registration after crossing 10 employees, excluding contract and casual workers, not registering new joiners promptly so that an accident occurs before coverage, and missing branches in other states. Late payment attracts interest and damages, and benefits paid to an employee who should have been covered can be recovered from the employer. When an employee's wage rises above ₹21,000 during a contribution period, coverage generally continues until the end of that period, so do not stop deductions mid-period.

Step by step

1. 1Check threshold

   Confirm the establishment has 10 or more employees.

2. 2Prepare documents

   Collect entity, address, bank and employee details.

3. 3Register online

   Apply on the ESIC employer portal or through Shram Suvidha.

4. 4Get employer code

   Note the 17-digit code and log in.

5. 5Register employees

   Generate insurance numbers for covered employees.

6. 6Pay monthly

   Deposit contributions by the 15th of the following month.