ESIC Registration for Employers: Who Must Register, Process and Documents
TaxQue Editorial Team
Reviewed by TaxQue Legal & Compliance Experts
Quick Summary
The short version
Once your business has ten or more people on the payroll, ESIC registration usually becomes compulsory, and it has to be done within 15 days. It is also one of the cheapest ways to give staff real health cover. Here is who must register under the labour codes…
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Who must register
The Employees' State Insurance scheme now runs under the Code on Social Security, 2020, in force since 21 November 2025. It applies to:
Factories and establishments such as shops, restaurants, hotels, private schools and clinics, transport operators and offices, that employ 10 or more persons
Establishments carrying on hazardous or life-threatening work, even with a single employee
Smaller employers who choose to join voluntarily
Count everyone on the rolls, including contract and casual workers, when checking the threshold. Once you're covered you stay covered, even if headcount later drops below ten. ESI now operates in most districts of the country. Check that your area is notified if you're in a remote location.
Which employees are covered, and what it costs
Item
Rule
Wage ceiling
Employees earning up to ₹21,000 a month (₹25,000 for persons with disability)
Employer contribution
3.25% of the covered employee's wages
Employee contribution
0.75% of wages, deducted from salary
Low-wage workers
Average daily wage up to ₹176: no employee share; the employer still pays
Due date
By the 15th of the following month
Example: an employee on ₹18,000 a month costs the employer ₹585 and has ₹135 deducted, a total of ₹720 a month for medical care for the whole family, sickness pay, maternity benefit and disability cover. When someone's pay rises above ₹21,000 mid-way, they stay covered until the end of the current contribution period.
Documents for ESIC registration
PAN of the business, and of the proprietor, partners or directors
Proof of constitution: certificate of incorporation, partnership deed or LLP agreement, or shop and establishment / trade licence for a proprietorship
Address proof of the establishment: rent agreement, electricity bill or property document
Bank account details with a cancelled cheque
Details of the business activity and date of commencement
List of employees with dates of joining, wages and Aadhaar
Details of the owner, partners or directors, including contact numbers and email
Companies and LLPs incorporated through MCA's SPICe+ form get an ESIC registration number at incorporation. They only need to activate it and start reporting once they're covered.
How to register on the ESIC portal
Go to the ESIC website and choose Employer Login → Sign Up. Enter the establishment's name, state, district and the employer's mobile and email.
Log in with the credentials you receive and open New Employer Registration. Choose the type of unit (factory or establishment) and act under which you're registering.
Fill in the details of the business, the owners or directors, the bank account and the employees, and upload the documents.
Pay the first advance contribution if the portal asks for it, then submit.
The portal generates a 17-digit employer code number and a registration letter (Form C-11). Keep it safe. It is used for every payment and inspection.
Register within 15 days of becoming covered. Late registration means contributions are payable from the date you were covered, with interest.
After registration: the monthly routine
Register each covered employee on joining. They get an insurance number (IP number) and an e-Pehchan card, and add family members to it.
File the monthly contribution online by the 15th, listing each employee's wages and days worked, and pay the challan. Our guide to ESIC online payment covers the payment step.
Keep registers of attendance, wages and accidents, and report any workplace accident within the time allowed.
Display the ESI abstract and nearest dispensary details at the workplace.
Late payment attracts simple interest of 12% a year, plus damages, and the department can recover dues directly. ESIC usually sits alongside EPF (20 or more employees) and professional tax, so check those too. See our professional tax slabs and the salary calculator to see what each deduction does to take-home pay. TaxQue's ESI registration service sets up the code and the first month's filings for you.
Frequently Asked Questions
Got Questions? We Have Answers.
Yes. Under the Code on Social Security, establishments with 10 or more persons employed must register with ESIC, and those carrying on hazardous work must register even with one employee. Registration is due within 15 days of becoming covered.
This article is published by TaxQue (ARB FinTech LLP) for general informational, educational, and business guidance purposes only. Tax laws, GST rules, MCA circulars, and judicial precedents are subject to frequent statutory revisions. This content does not constitute formal individualized tax, accounting, or legal counsel.
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