ESI is a health and monetary benefit program called ‘Employee State Insurance’ managed by the Employee State Insurance Corporation, an autonomous body created by the law under the Ministry of Labour and Employment, Government of India. A number of benefits are entitled to the low paid employees working in Business Units earning up to INR 15,000 per month. Its rule as per ESI Act 1948 says that, business units, such as, Private Limited Companies, Public Limited Companies, One-Person Company, Proprietorships, Partnerships and LLP's are to mandatorily register in this scheme, if they employ more than 10 employees. Some states allow 20 employees in the Unit for its eligibility. Shops, Restaurants or Hotels only engaged in sales, Cinemas, Road Motor Transport Establishments, Newspaper Establishments and Private Educational Institutions come under the rule of this law.

• It is a health insurance and self-financing social security scheme including medical benefits, disablement benefits, maternity benefits, sickness benefits, free supply of physical aids, funeral expenses to the employees and their family.
• Business Units are to apply for ESI Registration within 15 days after the Establishment/Factory comes under the periphery of ESI Act 1948.
• 4% of employee’s salary should be contributed by employer and 1% of the monthly salary by the employee to be taken for ESI purpose, excepting for those employees earning INR 100 per day.
• This registration is a one-time process followed by ESIC monthly payment and ESIC biannual return in a Financial Year.

ESI Benefits:

• Covers Medical and Sickness (70% of salary, in case of certified illness that has lasted up to 91 days)
• Maternity benefits for the pregnant women with paid leaves
• After-Death benefit of up to 90% of the deceased employee’s salary, who died during his/her service period, per month to the dependent family member. Same applicable in the case of employee’s disability during service period.
• Allowance of funeral expenses
• Old age medical care expenses
• Concession in ESI dispensaries and hospitals on Medical Care

• ESI Consultation
• Employer Registration
• Employee Registration
• Documentation

Documents for Employers:

• License issued under Shops and Establishment Acts or Factories Acts or Registration Certificate
• MOA and AOA/TRUST DEED/PARTNERSHIP DEED according to applicant entity
• Business Address Proof (indicating the capacity of the Business Space, if needed)
• Photocopy of Latest Building Tax or Property Tax Receipt
• Copy of PAN Card
• Copy of Bank Statement
• Employment Position, Salary, etc. as recorded month wise
• Photocopy of Certificate of Commencement of Production and Registration Number of CST/ST or GST
• Evidence establishing the Date of Commencement of Production/Business/First Sale, like a copy of 1st Invoice

Documents for Employees:

• Family Members’ Photographs and their personal details

Step 1: Information Submission

Provide us with the necessary information and documents for ESI Registration. We'll verify the details to ensure accuracy and relevance, minimizing any potential issues. Following this, we'll prepare your ESI Registration Application for submission to the appropriate Regional Office.

Step 2: Application Processing and Verification

Your ESI Application will be filed using Employer’s Registration Form (Form-1) based on the provided information. We'll keep you updated on its status. The concerned Department will verify your application before issuing the ESI Code and other official credentials. Note: Form 3 (Return of Declaration) must be filed along with Form 1.

Step 3: ESI Credentials Issuance

Upon satisfactory verification by the concerned Department, a 17-Digit Unique Identity Number will be issued to your Business Unit. Employees can enroll in ESI by submitting Form-1, along with family member details and photographs, during their joining formalities. After verification of employees' ESI Applications, they will receive an Insurance Number and Temporary Identity Card for medical benefits for themselves and their family members within 3 months. Later, a Permanent Photo ID Card will be issued, which remains valid even if they change employers.

Step 4: Congratulations!

Your registration is now complete and remains valid lifelong. However, as a Business Unit, you must update employee records as needed.