Employment & Social Security#057

Understanding ESIC employer and employee registration

At a glance

Jurisdiction

Central — Employees' State Insurance Corporation (ESIC), Ministry of Labour and Employment

Who applies

Employers of factories or establishments (shops, hotels, restaurants, cinemas, road motor transport, newspaper establishments, and private educational/medical institutions) that employ 10 or more persons (20 or more in some states for shops), and their employees earning ₹21,000/month or less (₹25,000/month for persons with disability).

Typical time

Employer registration: 1–3 working days (online with auto-generated code). Employee registration and insurance number: 1–7 working days after employer submits data.

Fee

Employer contribution: 3.25% of gross wages. Employee contribution: 0.75% of gross wages. No registration fee charged by ESIC.

Who should use this process

✓Factory or establishment must employ 10 or more persons (10 in most states for factories and certain establishments).
✓Employees earning ₹21,000/month or less are compulsorily covered (₹25,000 for persons with disability).
✓Once covered, an employee remains an insured person even if wages temporarily exceed ₹21,000 during an IP (Insured Person) period.
✓ESIC applies to manufacturing, service, retail, IT/ITES (in notified areas), hospitals, educational institutions, and other establishments as notified.
✓The employer must register within 15 days of the Act becoming applicable to the establishment.

Who does NOT need to apply

✕Establishments covered under the Factories Act but with fewer than 10 employees are exempt.
✕Employees earning above ₹21,000/month (₹25,000 for PwD) are excluded from ESIC contributions.
✕Casual and contract workers employed through a contractor may be the contractor's liability, but the principal employer has residual liability.
✕Certain scheduled employment classes notified as exempt by the appropriate government.
✕Government employees covered under CHS (Central Health Scheme) or state government health schemes may be excluded.

Documents required

#	Document	Type needed	Purpose
1	PAN card of the employer / company / firm	Self-attested Copy	Tax identification of the employer entity; mandatory for ESIC employer registration.
2	Certificate of incorporation / partnership deed / proprietorship declaration	Self-attested Copy	Proof of legal constitution of the employer entity.
3	Address proof of establishment (electricity bill / rent agreement / property deed)	Self-attested Copy	Confirms the location of the establishment for ESIC branch office assignment.
4	Bank account details of employer (cancelled cheque / bank statement)	Self-attested Copy	Required for ESIC contribution payment via net banking / challan.
5	List of employees with name, DOB, wages, designation, Aadhaar, and bank details	Soft copy (PDF)	Submitted on the ESIC portal to register employees and generate Insurance Numbers (IP Numbers).
6	Aadhaar card of each employee	Self-attested Copy	Mandatory for employee registration and linking to IP number; used for biometric access at ESIC dispensaries.
7	Licence / registration certificate of establishment (shop and establishment licence, factory licence, etc.)	Self-attested Copy	Confirms legal operation of the establishment under the relevant state law.

Original documents: Carry originals only for in-person visits — do not hand them over permanently unless explicitly required.

Step-by-step guide

1
Employer registers on ESIC portal
Online
Visit https://www.esic.gov.in and click 'Employer Login' → 'Sign Up'. Fill in employer details: name, PAN, establishment type, address, date of coverage. Submit to receive a 17-digit ESIC employer code (Employer Code Number) instantly.
1–2 hoursESIC Employer Portal — https://www.esic.gov.in
2
Submit establishment details and obtain ESI code
Online
Log in with employer credentials. Complete the registration by uploading required documents (PAN, address proof, bank details, establishment licence). After verification, the ESI employer code is confirmed and a registration certificate is issued.
1–3 working days
3
Register employees on ESIC portal
Online
Under 'Employee Registration', add each covered employee's details: name, date of birth, Aadhaar, wages, joining date, family members. The system generates a unique 17-digit ESIC Insurance Number (IP Number) for each employee.
1–7 working days (bulk upload available)Employer / HR Administrator
4
Issue ESIC e-Pehchan Card / TIC (Temporary Identity Certificate)
Online
After employee registration, the employer downloads and distributes the ESIC e-Pehchan card or TIC to employees. Employees can also download from the UMANG app or ESIC portal using IP number and Aadhaar.
Immediate after registration
5
Pay monthly ESIC contributions via challan
Online
By the 15th of every month, generate the contribution challan on the ESIC portal for total employer (3.25%) and employee (0.75%) contributions. Pay via net banking or designated bank. Maintain records for compliance.
Monthly recurring
6
File half-yearly returns
Online
File the ESI half-yearly return (for the periods April–September and October–March) on the ESIC portal within 42 days of the contribution period ending. Include details of all insured persons, wages, and contributions.
Bi-annual recurringESIC Compliance Officer

Government officers involved

Social Security Officer (SSO)

ESIC Branch / Sub-Branch Office

Post-registration — periodic inspection of employer records, contribution compliance check.

Inspects establishment records, verifies employee coverage, and investigates complaints.

ESIC Branch Manager

ESIC Branch Office

Grievance resolution and registration issues — handles disputes, registration corrections.

Oversees employer compliance and handles registration-related queries.

Government portals

ESIC Employer and Employee Services Portal

https://www.esic.gov.in

Employer registration, employee registration, contribution payment, return filing, grievance.

ESIC IP Portal (Employee Self-Service)

https://ip.esic.gov.in

Employee login to view IP details, beneficiary details, e-Pehchan card download, dispensary info.

UMANG App

https://web.umang.gov.in/landing/department/esic.html

ESIC services on mobile — IP details, dispensary locator, e-Pehchan card download.

Things to watch out for

Registration must happen within 15 days of applicability

The ESI Act requires the employer to register within 15 days from the date the Act first applies (i.e., when headcount reaches 10). Delayed registration attracts interest at 12% per annum plus damages up to 25% of arrears.

Once covered, always covered — no exit if headcount drops

Once an establishment is covered under ESIC, it remains covered even if the number of employees later falls below the threshold. The only way to exit coverage is via formal application and ESIC order.

Principal employer is liable for contractor employees

If you engage contract workers through a labour contractor, you are the principal employer. If the contractor fails to register workers under ESIC, you bear the liability. Ensure contractor compliance and include ESIC clauses in labour contracts.

Contribution rate changes — always check current rates

ESIC contribution rates have changed over the years (reduced from 4.75%/1.75% to 3.25%/0.75% from 2019). Always check the current notified rates on esic.gov.in before computing payroll deductions.

Aadhaar seeding for employees is mandatory

Employee ESIC registration without Aadhaar linkage will not generate a valid IP number. Collect employee Aadhaar details during onboarding. Employees without Aadhaar must be guided to enrol first.