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Compliance Pack

ESIC employer registration and monthly contribution

  • ESIC gives your lower-paid staff medical cover and cash benefits, and is compulsory once you have 10 or more people.
  • Deadline: Practitioner guidance: register within 15 days of crossing the threshold; contribution by the 15th of the following month; half-yearly returns for April to September and October to March
  • Done in Registration in 3 working days after documents; monthly filing 2 working days after payroll
  • Prepared by your Savvy, checked by a CA
  1. Incorporation or registration certificate
  2. When did your headcount
  3. Check coverage and list eligible employees
  4. Registration letter C-11 with 17-digit code
The law and the stepsPay and start · ₹2,499One time, then monthly, + 18% GST

Answer in brief

ESIC gives your lower-paid staff medical cover and cash benefits, and is compulsory once you have 10 or more people. We register your establishment, enrol eligible employees, and file and pay the 4% contribution by the 15th each month.

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From the official sources

What the law says, and what trips people up

From the official portal's manuals and FAQs, with the source for each point.

The law

  • Code on Social Security 2020, Chapter IV (ESI), in force 21 November 2025; ESI Act 1948 repealed subject to savings

    ESI continues under the Code with ESIC as the implementing body; employers keep paying contributions and filing returnsSource

  • Code on Social Security 2020, Section 29

    Contribution has an employer's share and an employee's share at rates prescribed by the Central Government; falls due on the last day of the wage periodSource

  • Code on Social Security 2020, Section 31

    Employer pays both shares, including for contract workers; may recover only the employee's share from wages of that period; cannot deduct the employer's shareSource

  • Code on Social Security 2020, Section 164(2), savings

    Existing ESI rules, rates and coverage limits continue during the savings window, which a practitioner says closes on 20 November 2026Source

  • Code on Social Security 2020, Section 127; S.O. 2698(E), 29 May 2026

    12% simple interest a year on any amount due from an employer under the CodeSource

  • Government fee

    No registration fee found in sources read. Contribution: employer 3.25% and employee 0.75% of gross wages (4% total), unchanged since 1 July 2019; employees with average daily wage up to ₹176 pay no employee share but the employer still pays 3.25%. Source: https://www.patronaccounting.com/blog/esi-registration-compliance-rates-deadlines

  • Late fee or penalty

    Interest at 12% a year simple on late contributions (Sec 127 of the Code, S.O. 2698(E)): https://www.sgcms.com/regulatory-updates/3380-2/ . Damages under the earlier ESI Act Sec 85B up to 100% of the amount due, as summarised by a practitioner: https://www.patronaccounting.com/blog/esi-registration-compliance-rates-deadlines

On the portal

  1. esic.gov.in > Employer Login > Sign Up with name, email and mobile; get the user ID and password
  2. Login > New Employer Registration; fill Form-1 with establishment, activity, start date and headcount
  3. Upload documents and submit with DSC; download the C-11 registration letter with the 17-digit code
  4. Register employees to generate insurance numbers and Pehchan cards
  5. Each month: enter or upload wages and days for each insured person, then generate and pay the challan
  6. Download challan receipts and monthly contribution history for records

What trips people up

  • Form returned because of a wrong PAN or an expired DSC

    Check PAN and DSC validity before submittingSource

  • Contractor's workers not enrolled, and the principal employer is held liable

    Count contract workers and check the contractor's ESIC code and challansSource

  • Headcount later falls below 10, employer stops paying

    Coverage continues once established; keep filingSource

  • Late registration leads to back-dated liability

    Liability can run from the date coverage first applied; register promptly and pay arrears with interestSource

  • Employer deducts its own 3.25% share from salary

    Not allowed; only the employee's 0.75% share may be recovered, from the same period's wagesSource

People ask

Has the ESIC wage limit gone up from ₹21,000?

No notification raising it was found as of mid-2026; proposals of ₹25,000 to ₹30,000 have been discussed.Source

Is the ESI Act still in force?

It was repealed from 21 November 2025 and ESI moved to Chapter IV of the Code on Social Security. Contributions and returns continue.Source

Can we join ESIC with fewer than 10 employees?

Under the Code, ESIC coverage is voluntary below ten employees and mandatory for hazardous work regardless of size.Source

When are the contribution and benefit periods?

Contribution periods are April to September and October to March; matching benefit periods are January to June and July to December.Source

What changed in ESIC benefits under the 2026 rules?

Funeral expenses up to ₹20,000 and a maternity medical bonus of ₹15,000 under the Social Security (Central) Rules 2026.Source

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  • Incorporation or registration certificate
  • PAN of the establishment
  • Shops or factory licence
  • Address proof and bank details
  • Employee list with Aadhaar, wages, joining dates
  • Nominee details of employees
  • Owners' PAN and Aadhaar
  • DSC of signatory
  • GST certificate if registeredOptional

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One time, then monthly. Delivered in Registration in 3 working days after documents; monthly filing 2 working days after payroll. Due: Practitioner guidance: register within 15 days of crossing the threshold; contribution by the 15th of the following month; half-yearly returns for April to September and October to March

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