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Chartered Accountants India
Rahul B. Kavale & Co.Chartered Accountants
ESIC Registration (Employees’ State Insurance Corporation)
Registrations & Licenses•Rahul B. Kavale & Co.

ESIC Registration (Employees’ State Insurance Corporation)

Statutory ESIC registration under the Employees’ State Insurance Act, 1948 for factories and establishments with 10+ employees earning wages up to ₹21,000/month, providing social security, health, and medical benefits.

Read our approach
The Employees’ State Insurance (ESI) scheme is a comprehensive multi-dimensional social security system governed by the Employees’ State Insurance Act, 1948. Administered by the Employees’ State Insurance Corporation (ESIC), the scheme provides complete medical care and financial protection against sickness, maternity, temporary or permanent disablement, and death due to employment injuries. In Maharashtra and across designated implemented districts in India, ESIC registration is legally mandatory for all non-seasonal factories and commercial establishments (including shops, hotels, restaurants, educational institutions, IT units, and road motor transport undertakings) employing 10 or more persons. The scheme covers employees drawing gross monthly wages up to ₹21,000 (₹25,000 for persons with disabilities). We provide end-to-end ESIC registration on the Unified Shram Suvidha / ESIC portal, securing your 17-digit Employer Identification Code, registering covered staff, generating individual Insurance Numbers, and facilitating electronic Pehchan identity cards.

What we do

Our work in this practice group is structured around the records, deadlines, and decisions involved:

  • Statutory immunity from employer liability under the Workmen’s Compensation Act, 1923.
  • Comprehensive medical care in ESIC dispensaries and superspecialty hospitals for employees and family members.
  • Cash sickness, maternity, disablement, and lifelong dependent pension benefits funded by ESIC.
  • Low combined contribution burden: only 0.75% from the employee and 3.25% from the employer (total 4.0%).
  • Mandatory qualification criterion for corporate vendor empanelment and government tenders.
  • Clean compliance records preventing inspection notices, recovery warrants, and criminal prosecution.

How the engagement works

Under Section 2A of the ESI Act, 1948 read with Regulation 10B of the ESI (General) Regulations, 1950, every factory or establishment to which the Act applies must apply for registration within 15 days of becoming applicable. Failure to register or delayed payment attracts interest at 12% per annum under Section 39(5)(a), statutory damages up to 25% under Section 85B, and prosecution under Section 85.

Scenario 1: A manufacturing unit, retail outlet, hotel, or logistics company in Pune reaching a total headcount of 10 employees.

Scenario 2: An IT service firm or business process center hiring customer support and facility personnel earning under ₹21,000/month.

Scenario 3: A manpower supplier or facility management contractor deploying security guards or housekeepers requiring ESI insurance cards.

Scenario 4: An employer receiving an inspection notice or Form C-18 ad-hoc assessment order from an ESIC Social Security Officer.

Scenario 5: A company onboarding corporate clients who mandate comprehensive labour law statutory clearances.

Coverage & Wage Audit

We review your employee census, identify covered employees drawing gross monthly wages up to ₹21,000, and evaluate statutory applicability.

Shram Suvidha Portal Application

We draft and file the online Form 01 registration on the Unified Shram Suvidha portal with certified entity documentation.

17-Digit Code Allotment

We track departmental processing, address queries, and secure the official 17-digit ESIC Employer Code Letter (C-11).

General questions

01What is the employee threshold for mandatory ESIC registration?

In Maharashtra and most Indian states, ESIC registration is mandatory for any commercial establishment or factory employing 10 or more persons.

02What is the current wage ceiling for an employee to be covered under ESIC?

The wage ceiling for coverage is ₹21,000 gross wages per month (₹25,000 per month for employees with physical disabilities).

03What are the current contribution rates for ESIC?

The total contribution is 4.0% of the employee’s gross wages: 0.75% deducted from the employee’s salary, and 3.25% contributed by the employer.

04Can employees earning above ₹21,000 be covered under ESIC?

Employees earning above ₹21,000 per month are exempt from ESIC coverage. However, if an employee’s wage crosses ₹21,000 during a contribution period, they continue to be covered until the end of that specific contribution period.

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