Overview

Employee welfare is a top priority for any organization and the Government of India has introduced several initiatives to ensure that workers are financially and medically protected. One such initiative is the Employees’ State Insurance (ESI) scheme, regulated under the Employees’ State Insurance Act, 1948 and managed by the Employees’ State Insurance Corporation (ESIC), an autonomous body under the Ministry of Labour and Employment.

Any business that falls under the applicability criteria must obtain ESI Registration and ensure compliance with ESIC rules. This guide explains everything you need to know about ESI registration – meaning, eligibility, process, documents required, benefits, compliance requirements, timeline, fees and recent updates including SPREE 2025.

What is ESI Registration?

ESI Registration is a mandatory requirement for certain employers to provide health insurance and the social security benefits to employees earning up to a specific wage limit. Once it registered, then both the employer and employees contribute a fixed percentage of wages into the ESI fund, which is then used to provide: -

Medical care,

• Sickness benefits,
• Maternity benefits,
• Disability compensation., and 
• Other welfare support to insured persons and their families.

Applicability of ESI Registration

For Employers:

• Establishments employing 10 or more employees (in most states).
• In some states, the threshold is 20 employees.

For Employees:

• Employees earning up to ₹21,000 per month are covered.
• For persons with disability, the wage limit is ₹25,000 per month.

Contribution Rates (as of now):

• Employer’s contribution: 3.25% of wages
• Employee’s contribution: 0.75% of wages
• Total contribution = 4% of wages

Why ESI Registration is Important?

1. Statutory Compliance – It is mandatory under law, with the penalties for non-compliance.
2. Employee Welfare – Ensures financial and medical protection.
3. Employer Branding – Improves trust, reduces attrition and also enhances productivity.
4. Social Security – Coverage for medical, maternity, sickness, disability and death.

Process of ESI Registration

The process is fully online through the ESIC portal (www.esic.in).

Step-by-Step Process:

• Check Eligibility – Confirm that your establishment meets the threshold.
• Create Account – Sign up as an employer on the ESIC portal.
• Fill Employer Registration Form (Form-01) – Enter establishment, employer and employee details.
• Upload Documents – Submit the scanned copies of required documents.
• Pay First Contribution – Employer deposits initial contribution.
• Allotment of Employer Code – ESIC issues a unique 17-digit Employer Code.
• Employee Registration – Each employee is allotted an Insurance Number and issued a PeHchan Card.

Documents Required for ESI Registration

• Certificate of Incorporation / Partnership Deed / Registration Certificate.
• PAN card of business and employer.
• GST Registration Certificate (if applicable).
• Address proof of establishment (Electricity Bill, Rent Agreement, Property Tax Receipt).
• Bank account details of establishment.
• MOA & AOA / Partnership Deed.
• Specimen signature & digital signature of employer.
• Employee details (Name, Aadhaar, PAN, Date of joining, Salary details, Nominee details).

Benefits of ESI Registration

1. Medical Benefits – Complete medical care for insured persons and their families.
2. Sickness Benefit – 70% of wages during medical leave (up to 91 days/year).
3. Maternity Benefit – Full wages for maternity leave, miscarriage or adoption-related leave.
4. Disablement Benefit –
        - Temporary: 90% of wages till recovery.
        - Permanent: Monthly pension based on disability.
5. Dependent Benefit – Pension to dependents in case of death due to employment injury.
6. Funeral Expenses – Fixed sum of ₹15,000.
7. Unemployment Allowance – Up to 24 months in case of involuntary unemployment due to retrenchment or permanent disability.

Post-Registration Compliance

Employers must ensure ongoing compliance with ESIC rules:

• Contribution Payment – Deposit contributions within 15 days of the following month.
• Half-Yearly Returns – File returns for April–September and October–March.
• Record Maintenance – Maintain employee registers and wage records.
• Employee Updates – Update joiners, exits and salary changes on the ESIC portal.
• PeHchan Card – Ensure employees receive their ESIC cards.

Timeline for ESI Registration

• Employers must apply within 15 days from the date of applicability.
• Employer code is usually generated within 7–15 working days.

Note: - Timeline may vary depending on completeness of document and verification delays.

Fees for ESI Registration

• Government Fee – No official government fee for registration.
• Contribution Fee – Monthly employer + employee contributions as per prescribed rates.
• Professional/consultancy charges – It may apply if you hire a service provider.

Recent Update – SPREE 2025 Scheme

In July 2025, ESIC launched a special one-time compliance scheme called SPREE 2025 (Scheme for Promoting Registration of Employers and Employees).

Key Highlights:

1. Duration: July 1, 2025 – December 31, 2025.

2. Who Can Apply: Unregistered employers and employees (including contract/temporary staff).

3. Benefits:

• Employers get legal immunity from penalties, damages and inspections for past non-registration.
• Registration becomes effective only from the declared date (no backdated liability).
• Employees get immediate coverage under ESIC from the effective date.

4. Mode: Digital registration via ESIC portal, Shram Suvidha portal or MCA portal.

This scheme is designed to encourage compliance and expand social security coverage without burdening businesses with retrospective penalties.

FAQs