Quick answer
When is ESI registration required for an employer?
ESI registration is required once a factory or covered establishment employs 10 or more people, and it then covers every employee earning up to ₹21,000 a month (₹25,000 for persons with disability). The employer applies online, then pays 3.25% of wages while the employee pays 0.75%, within 15 days after each month ends.
- Threshold: 10 or more employees
- Wage limit ₹21,000 a month, ₹25,000 for disability
- Employer 3.25%, employee 0.75% of wages
- Pay within 15 days after the month ends
- Now under the Code on Social Security
What is ESI registration and who must register?
ESI registration is the employer's enrolment under the Employees' State Insurance scheme run by ESIC. It is compulsory for non-seasonal factories and most shops, offices, hotels, restaurants, private clinics and schools employing 10 or more persons, and it insures employees earning up to the wage limit.
Once you are registered, each eligible employee gets an insurance number. That number gives the worker and family access to ESIC dispensaries and hospitals, plus cash benefits during sickness, maternity or injury at work. The employer's job is to register, enrol staff and pay contributions every month.
ESI under the Labour Codes
The Code on Social Security 2020 took effect on 21 November 2025 with the other three Labour Codes. The PIB release says ESIC coverage is mandatory above the 10-employee mark, voluntary for smaller units, and applies even to a single worker in hazardous processes. Law firms note that rules and schemes under the old ESI Act were kept running for a transition year, so the ESIC portal and forms you file on look much the same as before.
| Point | Rule |
|---|---|
| Factories | Non-seasonal factories with 10 or more persons |
| Shops, hotels, restaurants, cinemas, transport, newspapers, private medical and educational institutions | 10 or more persons where the state has extended the scheme; 20 or more under central extensions |
| Employee wage limit | ₹21,000 a month (from 1 January 2017) |
| Persons with disability | ₹25,000 a month |
| Hazardous processes | Covered even with one employee, under the Code |
| Below the threshold | Voluntary coverage possible |
Sources: ESIC coverage page; PIB, Labour Codes. Checked 10 November 2026.
Documents required for ESI registration
ESIC employer registration is filed online, so you need scanned copies rather than paper files. Keep the business PAN, a registration proof for the entity, owners' KYC, premises address proof, bank details and the list of employees with wages and dates of joining ready before you start.
| Document | Why it is needed |
|---|---|
| PAN of the business | Identifies the employer on the portal |
| Incorporation certificate, partnership deed, LLP agreement or GST / Shops certificate | Proves the business exists and its legal form |
| PAN and Aadhaar of proprietor, partners or directors | Details of the people responsible |
| Rent agreement or utility bill for the premises | Address of the factory or office |
| Cancelled cheque or bank statement | Bank account for contributions |
| Employee list with wages and joining dates | Shows the date coverage started and who is covered |
| Family details and photographs of each employee | Needed when enrolling staff after registration |
Our working checklist for the Shram Suvidha and ESIC employer flows, as of November 2026. The portal may ask for more in a specific case.
Need help with ESI registration and ESI return filing? Talk to a chartered accountant in Delhi today. First call is free.
How to get ESI registration online: step by step
Employers register with ESIC online through the Shram Suvidha portal, which ESIC links from its employer section. New companies that tick ESIC in the SPICe+ AGILE-PRO-S form get the code with incorporation, because MCA lists ESIC as a mandatory item there.
- 1
Check the date of coverage
Find the date your headcount first reached 10, counting contract and casual workers.
- 2
Log in to Shram Suvidha
Create or use the employer login and choose ESIC registration.
- 3
Fill employer details
Enter the business name, PAN, address, nature of work, date of commencement and number of employees.
- 4
Submit and receive the code
Upload documents and submit; ESIC issues an employer code number and a registration letter by email.
- 5
Set up the ESIC employer portal
Log in with the code, update bank and contact details and check the address shown.
- 6
Register each employee
Add every worker earning up to the wage limit with Aadhaar, bank and family details to generate their insurance number.
- 7
Pay the first contribution
File the monthly contribution and pay the challan within 15 days after the month ends.
What are the ESI contribution rates and due dates?
From 1 July 2019 the employer pays 3.25% and the employee pays 0.75% of wages, so 4% in total, according to ESIC. Contributions are due within 15 days of the end of the calendar month. Workers whose average daily wage is up to ₹176 do not pay their share, though the employer still pays.
Worked example
A Rohini clinic pays a receptionist ₹18,000 gross for October 2026. ESI for October is ₹135 from the employee (0.75%) and ₹585 from the clinic (3.25%), a total of ₹720, payable by 15 November 2026. If the same person earned ₹23,000, ESI would not apply, because wages are above the ₹21,000 limit.
| Item | Rule |
|---|---|
| Employer share | 3.25% of wages |
| Employee share | 0.75% of wages |
| Low-wage exemption | Employee share waived up to ₹176 average daily wage |
| Payment due | Within 15 days after the month ends |
| Contribution period 1 | 1 April to 30 September (benefits 1 January to 30 June) |
| Contribution period 2 | 1 October to 31 March (benefits 1 July to 31 December) |
Source: ESIC, contribution. Checked 10 November 2026. The EPF wage ceiling rise to ₹25,000 in September 2026 did not change the ESI limit.
How does ESI return filing work?
ESI return filing is mainly the monthly contribution: you enter each insured employee's days worked and wages on the ESIC employer portal, generate the challan and pay online within 15 days of the month end. The portal also tracks the six-month contribution periods that decide each worker's benefits.
Monthly accuracy matters more than the form. Points we check each cycle:
- Days and wages: enter actual days paid; zero days needs a reason code, such as left service or on leave without pay.
- New joiners: register them on the day they start, so a work injury in week one is still covered.
- Wage limit crossers: a worker whose pay rises above ₹21,000 mid-period needs care; check the rule on the portal before dropping them.
- Contractor staff: collect the contractor's ESI challans, since the principal employer is answerable if they do not pay.
We file ESI and PF from the same salary sheet, which is why most clients pair this with PF registration and PF return filing.
Penalties and common ESI mistakes
Late ESI contributions carry interest, reported at 12% a year, for each day of delay, and ESIC can also levy damages and recover dues from the date coverage should have started. Employers who skip ESI registration altogether face back-dated demands, and the employee's medical claims cannot be met in the meantime.
- Counting only permanent staff, so the 10-person date is missed.
- Deducting the 0.75% but not paying it within 15 days.
- Leaving a worker unregistered and then facing an accident claim with no insurance number on record.
- Wrong bank or address on the employer portal, so notices go unseen.
- Treating ESI as optional for a shop because it is "small", when its headcount already crosses 10.
We do not publish damage rates because the Code's schemes were still being notified through 2026. Use the ESIC portal or the notice itself for the figure.
ESI registration in Delhi: local points to know
For a Delhi employer, ESI registration is a national online process with no state form, and Delhi has ESIC dispensaries and hospitals for insured workers. Two local points help: Delhi levies no professional tax at present, and minimum wages are set by the Delhi Labour Department, which changes how many staff fall under the ₹21,000 limit.
Many Delhi workers in shops, factories and service jobs earn near the minimum wage, so a large share of a typical shop-floor or retail team is inside ESI. Check the current Delhi minimum wage notice before fixing pay, because wages are what decide coverage. We do not print rates here as recent orders have been disputed.
Factories in Narela, Bawana and Wazirpur, and clinics and schools across North West Delhi, are the employers we most often register. If you are near the northern industrial belt, our CA in Narela page covers the area.
How CA in Delhi handles ESI registration and ESI return filing
We handle the whole cycle: coverage date check, employer registration, employee enrolment, and the monthly contribution. Khubchandani & Co. Chartered Accountants lists PF and ESI returns as a service; for new registrations CA in Delhi passes the enquiry to the listed firm or partner professional that handles it and confirms scope with you before work starts.
- You send: PAN, entity proof, owners' KYC, address proof, bank details and the staff list with wages.
- You get: the ESIC employer code, insurance numbers for each worker, portal access and the first challan paid.
- Each month: we ask for attendance and wages by the 5th, file contributions and send you the paid challan.
- Price: a fixed quote before work starts, depending on headcount and whether we run PF and payroll too.
See the firms we work with on chartered accountant firms in Delhi, or our payroll services if you want salaries, PF, ESI and TDS done together. Looking for help close to home? Try CA near me. Send the enquiry form with your headcount, or call or WhatsApp +91 99114 92897 to start.
Frequently asked questions
Is ESI registration mandatory for 10 employees?
Yes, for factories and for shops and establishments where the scheme has been extended, ESI applies at 10 or more persons. Some central-extension categories start at 20. Under the Code on Social Security, smaller units can join voluntarily and a single worker in a hazardous process is enough to bring an employer in.
What is ESI return filing?
ESI return filing is the monthly entry of each insured employee's days and wages on the ESIC employer portal, followed by online payment of the challan. Payment is due within 15 days after the month ends. These monthly filings build up each worker's contribution record for the six-month periods.
What is the ESI wage limit in 2026?
The ESI wage limit is ₹21,000 a month, in force since 1 January 2017, and ₹25,000 for persons with disability. The September 2026 rise in the EPF ceiling to ₹25,000 applies only to provident fund and did not change the ESI limit, as of November 2026.
How much ESI does an employer pay?
The employer pays 3.25% of each covered employee's wages and deducts 0.75% from the employee, both paid together each month. For a worker on ₹15,000, that is ₹487.50 from the employer and ₹112.50 from the employee. Workers on up to ₹176 a day pay nothing, but the employer still pays its share.
Do employees earning above ₹21,000 need ESI?
No. Employees whose wages are above ₹21,000 a month at the start of a contribution period are outside ESI, though they still count towards your headcount for the 10-person threshold. Persons with disability are covered up to ₹25,000. Keep a list so the monthly filing includes only eligible staff.
Can a company get ESI registration at incorporation?
Yes. In SPICe+, the AGILE-PRO-S form lists ESIC registration as mandatory, so a new private limited company or OPC gets an ESIC code with incorporation. Contributions start only once you employ covered staff, but the code is ready. Our company registration in Delhi page explains SPICe+.
What benefits does ESI give employees?
Insured employees and their families get medical treatment at ESIC dispensaries and hospitals, and cash benefits for sickness, maternity and injury at work, with support for dependants after a fatal work injury. Eligibility for cash benefits depends on contributions paid in the related contribution period.
We crossed 10 employees last year. What now?
Register now with the correct date of coverage, enrol the eligible staff and pay the back contributions. ESIC can charge interest and damages for the period, so the sooner it is regularised the smaller the cost. We work out the back period from your salary sheets before filing.
Is ESI the same as PF?
No. ESI is health and cash insurance run by ESIC, paid at 3.25% plus 0.75% for staff earning up to ₹21,000. PF is a retirement savings and pension scheme run by EPFO, compulsory at 20 employees, with 12% from each side on wages up to the ceiling. Many employers need both.