When you’re running a business in India that employs workers, ESIC Registration isn’t just a good idea—it’s a legal necessity under certain conditions. The Employees’ State Insurance Corporation (ESIC) is a government-run initiative that offers financial, medical, and social protection to employees and their families. It plays a crucial role in supporting the working class by offering timely aid during health-related emergencies. Employee State Insurance (ESIC) is a comprehensive social security scheme introduced by the Government of India to provide protection to employees in the private sector. It is managed by an autonomous body called the Employees’ State Insurance Corporation, functioning under the Ministry of Labour and Employment.

This scheme was specifically designed to support employees and their families in case of illness, injury, disability, or maternity by offering immediate medical treatment and financial assistance. It ensures the employee’s well-being and also reduces the financial burden of unexpected medical costs.

ESIC registration is one of the best schemes for securing the health and future of employees and their dependents. It was primarily introduced to offer security to workers employed in the private sector. Whether it’s an accident, illness, or any medical emergency, the ESIC scheme ensures that the employee or their family receives immediate treatment and financial relief.

Employees can avail themselves of the scheme’s benefits multiple times during their working tenure, without any cap on frequency. In case of workplace injury, the employee is entitled to receive their full salary every month upon submitting the required documents. This government-backed initiative assists thousands of employees every year, enabling them to manage expensive medical treatments without financial stress.

Moreover, any establishment with more than 10 employees must register with ESIC and file regular returns. This registration is mandatory for both employers and employees, ensuring transparency and accountability in employee welfare.

ESIC registration is mandatory for:

• Establishments or organizations employing 10 or more workers 
• Employees earning a gross monthly wage of ₹21,000 or less
• Businesses including factories, shops, hotels, restaurants, cinemas, newspapers, schools, colleges, and other establishments specified under the Act

Employees earning above ₹21,000 per month are not compulsorily covered under ESIC. However, they have the option to voluntarily opt in, depending on the company’s internal policy. If they choose to participate, the necessary deductions can be made from their salary accordingly.

Even smaller businesses employing fewer than 10 people can choose to register voluntarily under ESIC to extend social security benefits to their staff and stay ahead in compliance.

The Employees’ State Insurance Scheme offers a wide range of benefits to both employees and employers, making it one of the most comprehensive social security initiatives in India. The aim is not just to provide financial assistance during illness or injury but to create a safety net that promotes a healthier, more secure workforce.

1. Comprehensive Medical Coverage
   ESIC provides complete medical care and treatment to insured employees and their dependent family members. This includes access to hospitals, dispensaries, specialists, and even super-specialty treatment in tie-up hospitals—without any extra cost. Coverage starts from day one of ESIC registration.
2. Maternity Benefits
   Working women enrolled under ESIC are entitled to paid maternity leave for up to 26 weeks, along with medical care before and after childbirth. In case of complications, additional benefits or extended leave may also be granted based on medical advice.
3. Sickness Benefits
   Employees suffering from illness and temporarily unable to work are eligible for cash compensation equal to 70% of their wages for up to 91 days per year, provided they have contributed for a minimum number of days in the contribution period.
4. Work-Related Injury Benefits (Employment Injury Benefits)
   If an employee gets injured while performing job duties, ESIC provides complete wage compensation (100%) during the recovery period. This ensures that the injured worker or their family doesn’t face financial hardship during treatment or rehabilitation.
5. Disability Benefits
   • Temporary Disablement: If an employee is temporarily disabled, they receive full wage compensation until recovery.
   • Permanent Disablement: In the case of permanent disability, ESIC provides a monthly pension for life, depending on the extent of disability.
6. Dependents’ Benefits
   In unfortunate cases where an employee dies due to an employment-related injury or illness, dependents such as spouse, children, or parents are entitled to a monthly pension. This benefit helps families remain financially stable even after losing their breadwinner.
7. Funeral Expenses
   A fixed amount (currently up to ₹15,000) is paid as funeral expense reimbursement to the family of the deceased insured person. This amount helps cover basic cremation or burial costs during difficult times.
8. Confinement Expenses
   If the insured woman or wife of an insured man delivers a child at a place where ESIC medical facilities are not available, a fixed amount is provided for delivery expenses.
9. Rehabilitation Services
   For those who suffer from long-term illness, permanent injuries, or disabilities, ESIC offers vocational training and rehabilitation support, helping them regain employment capabilities.

1. Registration certificate under Shops & Establishments Act or Factories Act
2. PAN Card of the business and employer
3. Address proof of the company premises
4. Bank account details of the business
5. Employee details including:
   • Name, date of joining, salary, designation
   • Aadhaar and PAN card copies
6. Digital signature of the employer
7. Recent wage registers and attendance register

The ESIC scheme is contributory in nature, meaning both the employer and employee are required to contribute to the Employees’ State Insurance Fund. These contributions are made monthly at specified rates, which may be revised by the government from time to time.

Here are the current applicable contribution rates (as of FY 2024–25):

• • Employee’s Contribution:
    The employee contributes 0.75% of their basic monthly wages towards the ESIC Fund.
  • Employer’s Contribution:
    The employer contributes 3.25% of the basic wages paid to each employee.

Note: ESIC contributions are mandatory only for employees earning a gross monthly wage of ₹21,000 or less.
Employees earning above this threshold can voluntarily opt-in to the scheme, depending on company policy.

The timely and accurate deposit of these contributions ensures uninterrupted benefits like medical care, sickness allowance, maternity benefits, and more.

Managing your team’s social security benefits shouldn’t feel overwhelming. If you’re exploring ESIC Registration or want to understand how to stay compliant without the hassle, you’re in the right place.

With expert guidance from a trusted ESIC Consultant & CA firm In Pune, you can:

• Understand your responsibilities under the ESIC Act
• Register your organization without delays
• Stay ahead on ESIC return filing and compliance timelines
• Support your team with the benefits they deserve

Thousands of businesses like yours are simplifying their compliance journey while creating a safer, more supportive workplace. Would you like to do the same? Get personalized help—backed by experience and updated knowledge of current ESIC laws.