Statutory Compliance made easy

Employees State Insurance Act, 1948 | ESI Act by Pionhr



The Employees’ State Insurance Act, 1948 provides for certain benefits to employees in case of sickness, maternity and disablement or death due to employment injury and to make provision for full medical care to insured persons and their families.


It is applicable to the whole of India. The Law is applicable to every company, factory, or establishment, employing 10 or more employees (20 or more in some states) with a salary up to Rs 21,000.

PionHR Helps You With Employee ESIC Registration

Employee’s State Insurance is a payment deduction scheme for Indian labourers that shields healthiness insurance and social safety. ESIC originates below the Ministry of Labour & Employment in India and functions as an independent corporation. The ESI Corporation  accomplishes the capitals which are structured by the strategies and guidelines of the ESI Act, 1948. This act manages the endowment of therapeutic and money advantages to employees and their families through their comprehensive network of hospitals and dispensaries all over India.

What Are The Advantages Of ESIC Registration?

PionHR helps in the registration process for both employee & employer.

Employer Registration

If an employer consists of  10 or more employees, it has to to take up the ESI Registration
Within fifteen days of the submitting of the Employer’s registration form, the establishment is estimated to attain a Documentation number or ESI Code from the Local office. This number will be utilized in communication associated with the scheme

Employee Registration

Whenever an employee joins any private limited company, the ESIC online registration needs to be done by the employer and the family photograph also needs to be submitted at the ESIC office after stamp and signature by the employer

Within 90 days a permanent photo ID is delivered to the employee and will be delivered an insurance number for proof of identity under the scheme
Once listed, the ESIC registration can be transmitted if the employee ever changes the company.

Who Needs To Get ESIC Registration?

ESI Registration is compulsory for all establishments. In toting to that specific firm with equal to or more than 10 fixed employees are employed, calculated their monthly pay of such employees is not further than INR 21,000/- per month.

When Is It Obligatory For The Employer To Have The ESIC Registration?

Getting an ESI Registration for the industrial establishment is the legal obligation of the employer under Section 2A of the ESI Act 1948, read with Guideline 10-B of the same Act. The ESIC Registration has to be attained within ten working days from the date of commencement of operations at the industrial establishment

Advantages of Registering Under This Scheme Are Wide-Ranging, Like

  • Sickness aids from the monthly salary around 70% are aid, in case of any specialized disease and which lasts for a thoroughgoing of 91 days in any year
  • Remedial Reimbursements to an employee and his dependents
  • Motherhood Advantage (Pain Leaves) to the women who are pregnant
  • If the demise of the employee occurs during the job time – 90% of the payment is given to his wife or children in the form of a monthly compensation after the demise of the employee
  • Similar to overhead in case of the infirmity of the employee
  • Cremation expenditures
  • Oldness curative care expenditures


Sickness Benefit: Periodical payments to any insured person in case of his sickness certified by a duly appointed medical practitioner or by any other person possessing such qualifications and experience as the Corporation.

Maternity Benefit: Periodical payments to an insured woman in case of confinement or miscarriage or sickness arising out of pregnancy, confinement, premature birth of child or miscarriage, such woman being certified to be eligible for such payments.

Disablement Benefit: Periodical payments to an insured person suffering from disablement as a result of an employment injury sustained as an employee under this Act and certified to be eligible for such payments.

Dependants’ Benefit: Periodical payments to such dependants of an insured person who dies as a result of an employment injury sustained as an employee under this Act.

Medical Benefit: Medical treatment for and attendance on insured persons.

Funeral Expenses: Payment to the eldest surviving member of the family of an insured person who has died, towards the expenditure on the funeral of the deceased insured person or, where the insured person did not have a family or was not living with his family at the time of his death, to the person who actually incurs the expenditure on the funeral of the deceased insured person.

For Example

This amount is calculated each month. To simply the math, assume that your basic salary is Rs.15,000 per month including dearness allowance.

Your ESI contribution

Your contribution towards ESI is 0.75% of Rs.15,000 which amounts to Rs. 112.50 each month.

Your employer’s EPF contribution

Your employer’s contribution towards ESI is 3.25% of Rs.15,000 which comes to Rs. 487.50 per month.

So, the Total ESI contribution (by you and your employer) for a month amounts to Rs. 600 (Rs. 112.50 + Rs. 487.50).