ESI (Employees’ State Insurance) is a social security scheme run by the ESIC (Employees’ State Insurance Corporation) under the Ministry of Labour and Employment, Government of India. It provides medical, disability, maternity, and dependent benefits to employees working in eligible establishments.
If you’re running a business with 10 or more employees (in some states 20), and their monthly wages are ₹21,000 or less, ESI registration is mandatory. At SKNV and Associates, we assist Hyderabad-based employers in obtaining ESI registration quickly and correctly.
ESI registration is a legal requirement for businesses that fall under the ESI Act, 1948. It helps employees get access to:
Medical care and hospitalization
Maternity benefits (for women employees)
Sickness and disability pay
Dependents’ benefits in case of death or injury at work
Both the employer and employee contribute to the ESI fund monthly.
Businesses with 10 or more employees
Employees earning a gross monthly salary ≤ ₹21,000
Factories, shops, restaurants, schools, hospitals, or service organizations
Even if you’re running a small business, once you cross the threshold, registration is compulsory under law.
Collect company and employee details
Prepare necessary documents
Apply online on the ESIC portal
Generate 17-digit ESI number
Issue ESI cards to employees
Once registered, the business must regularly file ESI returns and deposit contributions on time.
PAN and registration certificate of business
Address proof and utility bill of the premises
Employee details with salary statements
Bank account details of company
Digital signature (Class 2 or 3)
Deduct 0.75% from employee salary
Contribute 3.25% as employer share
Deposit ESI monthly before the 15th
File bi-annual ESI returns
Maintain employee records and update any changes
Non-compliance can result in penalties and legal consequences under the ESI Act.
