What is the ESI Scheme?
The Employee State Insurance Scheme was introduced under the ESI Act, 1948 to provide financial protection and healthcare support to employees during unforeseen situations such as sickness, maternity, or work-related injuries. Administered by ESIC, the scheme offers extensive medical care to employees and their dependents through a network of dispensaries and hospitals across India.
Businesses covered under the scheme are required to contribute to the ESI fund along with their employees, creating a robust safety net for the workforce.
Applicability of ESI Registration
The ESI Act applies to:
- Factories and establishments employing **10 or more employees** (in most states) earning a monthly wage of **up to ₹21,000** (₹25,000 for persons with disabilities).
- Certain states may require registration for establishments with 20 or more employees.
Establishments Covered Under ESI Act Include:
- Shops and commercial establishments
- Restaurants and hotels engaged only in sales
- Cinemas, including preview theaters
- Road transport companies
- Educational and medical institutions (private)
- News agencies not covered under the Factories Act
Who Needs to Register for ESI?
Businesses that fall within the applicability limits must register with ESIC within **15 days** of becoming eligible. ESI registration is mandatory and non-compliance can attract legal consequences and penalties.
Employees eligible for ESI benefits:
- All employees earning ≤ ₹21,000/month (₹25,000/month for disabled persons)
- Women employees covered for maternity benefits
- Casual or contractual workers engaged in eligible establishments
Benefits of ESI Registration for Employees
Enrolling in the ESI scheme ensures a wide range of financial, medical, and social security benefits for employees and their families:
- Sickness Benefit: 70% of wages for up to 91 days per year during illness.
- Extended Sickness Benefit: For 34 specified long-term diseases, up to 2 years at 80% of wages.
- Maternity Benefit: 100% of wages for 26 weeks (extendable by 1 month).
- Medical Care: Complete medical treatment for the employee and dependents.
- Dependents’ Benefit: 90% of wages to dependents in case of death due to employment injury.
- Disablement Benefit: Temporary (90% of wages) or permanent monthly disability payments.
- Funeral Expenses: ₹15,000 provided to the family for funeral-related costs.
- Retirement Medical Benefits: Continued medical care post-retirement for a nominal annual fee.
Documents Required for ESI Registration
To complete your ESI registration online through the ESIC portal, the following documents are typically required:
- Business Registration Proof:
- Shops & Establishment Act Registration
- Factory License, or Company Incorporation Certificate
- Founding Documents:
- Memorandum and Articles of Association (MOA & AOA)
- Partnership Deed (if applicable)
- Address Proof:
- Utility bill (not older than 3 months)
- Rental agreement or property tax receipt
- Employee Details:
- List of employees with personal, salary, and joining details
- Financial Details:
- Company PAN and employee PANs
- Cancelled cheque of the company’s bank account
- Leadership Information:
- Directors/partners/shareholders list
- Attendance Register
Note: No physical submission is required as the process is entirely online.
Post-Registration Compliance
Once registered, employers must follow certain ongoing compliance requirements:
1. Maintain Records:
- Attendance and wages register
- Accident register
- Inspection book
2. Monthly ESI Returns:
- Contributions must be paid and filed by the 15th of every following month.
3. Update Employee Information:
- Add or remove employee records as necessary to stay updated with ESIC.
Failing to comply may result in penalties and interest on outstanding contributions.
How to Register for ESI Online?
The ESI registration process is carried out on the official [ESIC portal](https://www.esic.gov.in/). Here’s an overview of the steps:
1. Visit the ESIC portal and register as an employer.
2. Fill in establishment and employee details.
3. Upload scanned documents.
4. Submit the application.
5. Receive your 7-digit ESIC code number upon successful registration.
For businesses managing both ESI and PF compliance, AxurTax offers complete EPF-ESI registration packages, so you never miss a deadline.
Why Choose AxurTax for ESI Registration?
At AxurTax, we simplify compliance by offering:
✅ Fast and accurate ESI registration
✅ Affordable pricing and transparent process
✅ Dedicated compliance experts and CAs
✅ End-to-end support, including monthly filings
✅ Hassle-free documentation and follow-ups
Whether you’re a small business just starting out or a growing company expanding your team, our experts ensure that your business remains fully compliant with the ESI and PF regulations.
Get Started with ESI Registration Today!
Ensure your employees have access to social security and healthcare benefits while staying compliant with Indian labor laws. Let AxurTax handle your ESI and PF registration online with professionalism, speed, and affordability.
📞 Contact us today to get started with your ESI registration and discover how AxurTax can support your compliance journey!