Frequently Asked Questions (FAQs)
1. What is ESI Registration?
ESI registration is required for companies to provide medical and financial benefits to employees in case of sickness, maternity, or workplace injuries. It ensures social security for workers.
2. Who needs to register for ESI?
Any company with 10 or more employees (20 in some states) must register if their employees earn up to ₹21,000 per month (₹25,000 for disabled employees).
3. How do employers register for ESI?
Employers can register online on the ESIC portal by submitting business and employee details, uploading documents, and getting a 17-digit ESI registration number once approved.
4. What documents are needed for ESI registration?
You’ll need:
✅ Business registration certificate (Shops & Establishment Act or Factories Act)
✅ Address proof of the company
✅ PAN card of the business
✅ Bank account details
✅ Employee details (joining date, salary, identity proof)
5. How much is the ESI contribution?
Employer pays 4.75% of the employee’s salary
Employee pays 1.75%
This 6.5% contribution goes towards ESI benefits.
6. What benefits does ESI provide?
Employees and their families get:
✅ Medical care at ESI hospitals and dispensaries
✅ Sick leave with pay
✅ Maternity benefits for women employees
✅ Disability benefits for workplace injuries
✅ Financial support for dependents in case of employee death
7. Is ESI registration compulsory?
Yes, if your business meets the eligibility criteria. Not registering can lead to fines and legal action.
8. How do employees use ESI benefits?
Employees get an ESI card and can avail medical benefits at registered ESI hospitals or clinics. Cash benefits are claimed through the employer.
9. Can employees opt out of ESI?
No, if an employee earns ₹21,000 or less, ESI is mandatory. There’s no option to opt out.
10. What happens if an employer doesn’t register for ESI?
If an employer doesn’t register or contribute, they can face penalties, fines, and legal consequences. They may also have to pay past dues with interest.
