ESI Registration

The Employees State Insurance Act, 1948, paved the way for the establishment of an autonomous corporate body – The Employee State Insurance Corporation, falling under the jurisdiction of Ministry of Labour and Employment, to provide benefits to employees falling under this Act in case of sickness, maternity or any employment injury or otherwise and to make provision for the matters in relation thereto.


Under the ESI Act, all factories, and below stated establishments employing more than 10* employees for a monthly wage not exceeding Rs. 21,000 are required to be registered, within 15 days from the date it becomes eligible: –

  • Shops
  • Movie theatres
  • Hotels & restaurants
  • Educational & Medical institutions
  • Road Transport Establishments
  • Newspaper Establishments
  • Establishments engaged in Insurance
  • Business
  • NBFC
  • Warehousing Establishments

*For Maharashtra & Chandigarh, the number of employees is 20.


The following documents are required to register under the ESIC Act: –

  • Copy of PAN Card – Employer’s and Employees’
  • Address proof
  • Copy of recently paid property tax / EB receipt
  • Registration Certificate issued under the
  1. Factories Act
  2. Shop & Establishment Act
  • Partmership Deed in case of Partnership Firms / LLPS
  • MoA and AoA, in case of Companies
  • Trust Deed in case of Trusts
  • Copy of Bank Statement (Recent 2 months)
  • GST Registration Certificate (Optional)
  • List of Employees with details of their monthly compensation


(ESI) Employees State Insurance Return filing is a self-financing social security and health insurance scheme for Indian workers. ESI Registration is mandatory for employers having 10 or more employee. For all employees earning Rs.15,000 or less per month as wages. The employer must contribute 4.75% and the employee must contribute 1.75% towards ESI. The ESI fund is managed by the ESI Corporation (ESI) according to rules and regulations stipulated therein the ESI Act 1948, which oversees the provision of medical and cash benefits to the employees and their family through its large network of branch offices, dispensaries, and hospitals throughout India.

Therefore, ESI return is an autonomous corporation under the Ministry of Labour and Employment, Government of India. Hence, Virtual Auditor can help you obtain ESI registration for your business. All employers having 10 or more employees are required to be registered with Employee State Insurance (ESI) Corporation. Those entities having ESI Registration must then file ESI returns. ESI returns are due half-yearly. Therefore, Virtual Auditor can help file ESI returns for your business. Our ESI experts can also help you computer ESI payments and maintain ESI regulation compliance for your business. Use Remin Due to know more about your due dates for ESI return and ESI payment due date.


Eventually, Employee’s State Insurance Corporation(ESI) is a self-financing social security and health insurance scheme for Indian workers. The scheme provides employees with a comprehensive Social Security Scheme for protecting the employees during sickness, injury or disability.

ESI Contribution

ESI contributions must be made by the employer for all employees having a salary of less than Rs.15,000 per month. Therefore, the employer must contribute 4.75% and the employee must contribute 1.75% of the wages for ESI.

Continued Compliance

Organizations under ESI coverage must file an annual return showing the changes if any during the preceding year. Return of contributions enclosing a copy of all ESI contributions paid must submit once every six months.

ESI Benefits

Hence, Employee’s State Insurance Corporation(ESI) has a self-ESI provide employees registered the scheme with a host of medical and sickness benefits. Employees registered under the scheme can avail medical facilities and are also entitled to sick pay benefits.

ESI Registration

ESI Registration for Employers having more than 10 employees. Therefore, The Employer must contribute 4.75% of the Employees wages towards ESI. Once, registered the organization has allotted a 17 digit unique identification code.

ESI due date
Due Date for ESI payment

ESI return contribution has to deduct every month from the employee and it has to be contributed to the department. So ESI payment due date is monthly, on or before the 15th of next month. It is similar to PF in this respect.

ESI return due date

ESI return filing has done on a half-yearly basis and therefore, the due dates are fixed as 11th of November and May.


Due Date for ESI payment – On or before 15th of every month
ESI Return due date – 11th of Nov and 11th of may

ESI interest

Hence, An employer who does not pay the contribution within the time limit shall be liable to pay simple interest at the rate of 12% per annum for each day of the default or delay in payment of contribution.

Procedure for ESI return filing

Below are the steps to be followed

  • Log in employer portal using the 17 digit employer digit code
  • GO to the monthly contribution section
  • All the details of the employer contribution will be displayed
  • Verify the details.
  • If there are any short payments in respects of the employer then complete the dues.
  • Do self-certification under monthly contribution section, and then check to mark the declaration and submit the return.

How we help with ESI return filing

Here, Virtual Auditor can help your business to file ESI return and make ESI payments on time.

Document Collection

Here, A Virtual Auditor ESI Expert will collect the necessary information and documents for preparation of ESI return for your business.

Return Preparation

Therefore, based on the documents and information presented, a Virtual Auditor ESI expert will prepare your ESI return and send for your approval.

Return Filing

Once the ESI return is verified and approved by you. Hence, Our ESI expert will file your ESI return with the ESIC department.

    How does the ESI scheme help the employees?

    The ESI scheme provides complete medical care to the employees registered with the ESIC during the period of his/her incapacity and working capacity. It also provides financial assistance to compensate for the loss of wages of the employee during the period of his/her abstention from work due to sickness, maternity and employment injury. The ESI scheme provides medical care to family members of the employee also.

    Who administers the ESI scheme?

    The ESI scheme is administered by a statutory corporate body called the Employees’ State Insurance Corporation (ESIC), which has members representing employers, Central Government, employees, medical professions, state government, and the members of Parliament. The Union Minister of Labour is the Chariman of ESIC and the Director-General of the ESIC is the Chief Executive Officer of the ESIC.

    How is the ESI scheme funded?

    The ESI scheme is a self-financing scheme. The ESI funds are primarily built from the monthly contributions of the employers and employees. The monthly contributions are made at a rate of a fixed percentage of wages paid. The state governments also bear 1/8th share of the cost of medical benefits.

    What are the establishments that are covered under the ESI scheme?

    The Central Government issued a notification that all factories where 10 or more persons are employed are covered under the ESI scheme mandatorily. The following establishments employing 10 or more persons are also mandatorily covered under the ESI scheme:

  • Shops.
  • Hotels or restaurants not having any manufacturing activity, but only engaged in ‘sales’.
  • Cinemas, including preview theatres.
  • Road motor transport establishments.
  • Newspaper establishments.
  • All private educational institutions and medical institutions.

  • Who fixes the rate of contribution for the ESI scheme?

    The Government of India revises and fixes the rate of contribution for the ESI scheme. The rates are revised from time to time. Currently, the government reduced the rate of contribution in June 2019, effective from 1st June 2019. At present, the employee’s contribution rate (w.e.f. 1.07.2019) is 0.75 % of the wages, and that of the employer’s is 3.25% of the wages paid/payable in respect of the employees in every wage period.

    Is ESIC compulsory for all employees?

    Yes. All the establishments covered under the ESI Act and all factories that employ more than 10 employees and pay wages below or upto Rs.21,000 per month (Rs.25,000 for employees with disability) must register with the ESIC and contribute towards the ESI scheme. All the employees earning more than Rs.21,000 per month are exempted from the ESI contribution.