An Overview of Employees’ State Insurance (ESI)
The Employees’ State Insurance (ESI) is a social security and health insurance scheme
under the ESI Act, 1948, governed by the Ministry of Labour & Employment and
administered by the Employees’ State Insurance Corporation (ESIC).
It provides medical care, financial assistance, and social security benefits to
employees earning wages up to ₹21,000 per month (₹25,000 for PwDs). Contributions are
made by both employers and employees, and ESI returns must be filed monthly and
half-yearly.
Non-compliance can lead to penalties, interest, and legal action.
Advantages of ESI Scheme
Comprehensive Medical Care: Free medical treatment for employees and
their dependents.
Sickness Benefit: 70% of wages paid for up to 91 days per year.
Maternity Benefit: Paid maternity leave and care for female employees.
Disability Benefit: Monthly compensation for temporary or permanent
disabilities.
Dependents’ Benefit: Pension to family in case of death of an insured
employee.
Unemployment Allowance: Support during involuntary job loss under
certain conditions.
Insurance Coverage: Emergency coverage for occupational injuries and
illnesses.
Documents Required
For Employer/Establishment:
- Certificate of Incorporation / Partnership Deed
- PAN of the business
- Address Proof of business
- Cancelled cheque of company bank account
- GST / Shops & Establishment Registration (if applicable)
- Digital Signature Certificate (DSC) of authorized signatory
- Wages Register and Attendance Register
- Inspection Book and accident records (if any)
For Employees:
- Name, Date of Joining, and Salary details
- Employee PAN, Aadhaar, and Address Proof
- Photographs and nominee details
ESI Registration & Return Filing Process
ESI Registration:
- Apply online using Form-1 on the ESIC
portal.
- Obtain a 17-digit unique identification
number.
- Enroll employees and issue ESI cards.
Monthly Contributions:
- Employer contributes 3.25% of wages.
- Employee contributes 0.75% of wages.
- Payment due by the 15th of the following
month.
Return Filing:
- File monthly returns through the ESIC
portal.
- Half-yearly returns (Form 5):
- By 12th November for April–September.
- By 12th May for October–March.
Record Maintenance:
- Maintain attendance, wage, and accident
registers.
- Keep inspection book and filed
challans/returns.
Industry Applications:
- Manufacturing & Industrial Units
- IT & Software Companies
- Educational Institutions
- Hospitality & Travel Agencies
- Construction & Real Estate Firms
- Healthcare & Hospitals
- Startups & Service Sector
Requirements for ESI Registration
- Mandatory for establishments with 10 or more employees.
- Voluntary registration available for fewer employees.
- Proper employee salary and attendance records must be maintained.
Contribution Structure:
- Employee: 0.75% of gross monthly wages
- Employer: 3.25% of gross monthly wages
- Total contribution: 4% of wages (from July 2019)
Why Choose Subrudhi for ESI Registration
Subrudhi simplifies the ESI registration and return filing process for businesses across
India. From initial registration to ongoing compliance, our experts ensure your company
adheres to all ESI Act requirements.
We handle employee onboarding, document preparation, monthly contributions, and
half-yearly return filing through the ESIC portal, minimizing errors and penalties.
With transparent pricing and dedicated relationship managers, Subrudhi provides
end-to-end support tailored to your business size and industry.
Frequently Asked Questions
All employers registered under ESIC with 10 or more employees must file
monthly and half-yearly returns.
₹21,000 per month for general employees; ₹25,000 per month for persons with
disabilities.
Contributions must be deposited by the 15th of the following month.
Employer: 3.25% and Employee: 0.75% of wages.
Interest at 12% p.a., damages from 5% to 25% based on the delay period, and
possible prosecution.
Yes, the ESI return filing process is completely online via the ESIC portal.
12th May (for October–March) and 12th November (for April–September).