ESIC Registration in 2026: Who Must Register, Contribution Rates and How to Apply

The Employees' State Insurance (ESI) scheme gives workers earning up to ₹21,000/month free medical care for themselves and their families. It also pays them cash during sickness, maternity, injury and unemployment. Employers who are covered must register with the Employees' State Insurance Corporation (ESIC), register each eligible employee and pay contributions every month. This guide is for small business owners, HR and payroll staff and accountants. It covers who must register in 2026, what changed when the Code on Social Security, 2020 came into force, the contribution rates with ₹ examples, the employer and employee registration steps, contribution periods and the benefits your staff can claim.

Quick answer

If you employ 10 or more employees, register on the ESIC portal (or Shram Suvidha). It is free and instant: you get a 17-digit employer code and the C-11 letter online. Then register every employee earning up to ₹21,000/month and pay 3.25% (employer) + 0.75% (employee) of wages by the 15th of the following month. Since 21 November 2025, ESIC coverage applies across India under the Code on Social Security.

• Wage ceiling ₹21,000/month; ₹25,000/month for persons with disability

• Employees on up to ₹176 a day average daily wage pay nothing; employer still pays

• Fewer than 10 employees can join voluntarily; hazardous-process units are covered with even one employee

• Companies formed via SPICe+ already have an ESIC code from AGILE-PRO-S

What changed in 2025–26: ESIC under the Code on Social Security

For more than seventy years the scheme ran under the Employees' State Insurance Act, 1948. That changed on 21 November 2025, when the Ministry of Labour and Employment brought the Code on Social Security, 2020 into force along with the other three labour codes. ESIC's circular of 28 November 2025 records that the ESI Act is "since repealed". The scheme now runs under Chapter IV of the Code. ESIC, its hospitals, the IP numbers and the contribution system all continue, so existing registrations remain valid.

The changes that matter to employers are:

• Pan-India coverage. Earlier, the scheme applied only in areas the government had "notified". The PIB backgrounder on the codes says this concept has been removed, so covered establishments anywhere in India are within ESIC.
• Voluntary coverage below 10 employees. Establishments with fewer than 10 persons can opt in with the mutual consent of employer and employees.
• Hazardous processes. The Labour Ministry's December 2025 release says coverage is mandatory for establishments employing even a single employee in a hazardous process.
• Wider family cover. A widower and a grandparent are now "dependants" for dependants' benefit. The father-in-law and mother-in-law of a woman employee now count as "family" for medical benefit.
• New wage definition. The Code has one definition of "wages" across labour laws. Excluded allowances such as HRA and conveyance count only up to 50% of total remuneration, and any excess is added back. Payroll teams should recheck which pay components attract ESI contributions.
• New rules. The Social Security (Central) Rules, 2026 were notified on 8 May 2026 (G.S.R. 344(E)). They replace the ESI (Central) Rules, 1950 and route establishment registration and compliance through the Ministry's Shram Suvidha portal.

The wage ceiling and contribution rates did not change with the Code. ESIC's own pages still show ₹21,000/month and 3.25% + 0.75%.

ESIC at a glance (2026)

3.25%

Employer contribution

of wages

0.75%

Employee contribution

of wages

₹21,000/month

Wage ceiling

₹25,000/month for PwD

15th of the following month

Payment due

for the previous month

Who must register: applicability rules

Establishments. ESIC applies to non-seasonal factories and to establishments employing 10 or more employees. Over the years state and central notifications extended the scheme to shops, hotels, restaurants, cinemas, road transport undertakings, newspapers, private medical and educational institutions and other categories. ESIC's coverage page still lists these. The count includes everyone employed directly or through a contractor, and both permanent and casual staff. You count all workers, not only those under the wage ceiling.

A note on the 10 vs 20 threshold. ESIC's employer registration help file still carries a state-wise table from the old regime. It shows 10 employees for factories everywhere, but 20 for some categories of establishments in states such as Maharashtra, Tamil Nadu, Uttar Pradesh and Madhya Pradesh. Under the Code the threshold is 10, and the government says coverage has been extended pan-India. Until the transition settles, an employer in one of the old 20-employee states with 10 to 19 staff should confirm its position with the local ESIC branch office in writing.

Employees. Every employee of a covered unit whose wages are up to ₹21,000/month a month is an insured person (IP), or up to ₹25,000/month for a person with disability. Coverage continues for the rest of a contribution period even if their wage rises above the ceiling during it. Under the long-standing rule, a unit once covered stays covered even if its headcount later falls below 10.

Worked example. A Pune garment unit has 14 workers. Twelve earn ₹14,000 to ₹19,500 a month and two supervisors earn ₹32,000. The unit is covered because it has more than 10 employees. The twelve workers are insured persons and contributions are paid on their wages. The two supervisors count towards the 10 but are not insured, because they earn above the ceiling.

Contribution rates and how to calculate them

Contributions are a percentage of each insured employee's wages for the month: 3.25% from the employer and 0.75% from the employee. These rates have applied since 1 July 2019, when they were cut from 4.75% and 1.75%. The employer deducts the employee's share from salary and deposits both shares together. An employee whose average daily wage is ₹176 a day or less pays no share, but the employer must still pay its 3.25%.

For a unit with twelve insured workers averaging ₹16,000, the monthly ESIC outgo is about ₹6,240 from the employer and ₹1,440 deducted from the workers, ₹7,680 in all. The portal calculates the shares from the wages you upload, so the figures you enter must match your payroll.

What counts as wages. Include basic pay, dearness allowance, overtime and incentives paid as part of wages, applying the Code's 50% rule to excluded components. Annual bonus and other items that the definition excludes are left out. Getting the wage base wrong is a common inspection finding, so align your payroll with the Code's definition. Our salary slip generator shows the ESI deduction line separately.

How to register as an employer

ESIC's own help file describes employer registration as "fully online" and "real time". You fill in the screens, a code number is generated at once, and the registration letter C-11 is emailed with your login credentials. No physical documents are submitted, and the computer-generated C-11 is valid proof of registration without a signature.

Employer registration on the ESIC portal

1. 1

   Sign up

   On the ESIC portal choose Employer Login → Sign up, enter the company name, principal employer's name, state, region, email and mobile. Login details arrive by email.

   ESIC employer portal
2. 2

   Register the main unit

   Log in, choose 'New Employer Registration', select the type of unit (factory or establishment) and enter the nature of business, PAN, date of commencement, employee count and wage details.

3. 3

   Add employer and unit details

   Enter the principal employer and managers, the registration or licence under which the unit operates (Shops Act, Factories Act, GST, company or LLP registration) and the address.

4. 4

   Choose branch office and dispensary

   Pick the ESIC branch office and inspection division nearest to your unit, and the dispensary or IMP for your workers.

5. 5

   Submit and get the code

   On submission the 17-digit employer code is generated and the C-11 letter is emailed. Manpower suppliers, security agencies and contractors must first pay six months' advance contribution online.

   Tip: Save the C-11. Banks, tenders and principal employers ask for it.

Alternative routes. The Shram Suvidha portal is the Labour Ministry's common registration and compliance portal. Under the 2026 Central Rules it handles establishment registration across the social security schemes. Companies incorporated through SPICe+ since 23 February 2020 get their ESIC code automatically through AGILE-PRO-S (company registration guide). They still need to log in, complete their profile and start contributions once they cross the threshold.

When to register. Register as soon as the establishment becomes coverable. That is the date you reach 10 employees, or the date you start a hazardous process. Contributions are due from that date, not from the date you get round to registering. ESIC can assess and recover arrears for the gap, with interest and damages.

Documents to keep handy. Although nothing is uploaded at sign-up, inspectors and branch offices may ask for:

Keep these ready for ESIC

0/7

• PAN of the business and of the principal employer
• Registration proof: certificate of incorporation, LLP certificate, partnership deed or Shops and Establishment / factory licence
• GST registration certificate, if any
• Address proof of the premises (rent agreement or ownership document)
• List of employees with date of joining, wages and Aadhaar
• Bank account details for paying contributions
• Attendance and wage registers for the period since you became coverable

Share Print

Registering employees and the IP number

After the employer code is active, every eligible employee must be registered on the portal when they join. Enter the employee's Aadhaar, date of birth, wages, family members, nominee and the dispensary they will use. The system issues a 10-digit Insurance Number (IP number). You download the e-Pehchan card for the employee, and family members are linked to it. Register promptly: a worker injured on day two is covered only if they are on the system. An employee who already has an IP number from a previous job keeps it, so search before creating a new one, because duplicate IP numbers block claims.

Paying contributions: periods, due dates and records

Contributions are calculated monthly and paid online through the employer portal (monthly contribution upload, then e-challan) by the 15th of the following month. The year is divided into two contribution periods, each linked to a benefit period that starts three months after it ends. Whether a worker qualifies for cash benefits depends on how many days were paid for in the corresponding contribution period.

ESIC contribution and benefit periods

Every month, by the 15th

Upload wages and days, generate the challan and pay employer + employee shares for the previous month

1 April – 30 September

Contribution period 1 → benefit period 1 January – 30 June of the following year

1 October – 31 March

Contribution period 2 → benefit period 1 July – 31 December

On any employment injury

Report the accident to ESIC promptly through the portal so the worker's disablement and medical benefits start

Keep a wage register, attendance register, the accident book and copies of challans. Late payment attracts interest and, for longer delays, damages. Persistent non-payment of deducted employee shares is treated seriously because the money belongs to the workers. If a month has zero wages (for example, a seasonal shutdown), file a nil contribution for that month rather than skipping it.

When employees join, leave or cross the ceiling

New joiners. Register the worker on the portal when they join, before the first wage month closes. Contributions start with the first wage period. Medical benefit is available from the first day of insurable employment, and cash benefits follow once enough contribution days are on record.

Wage rises above the ceiling. If a worker earning ₹20,000 gets a raise to ₹23,000 in August, they stay insured and contributions continue on their actual wages until 30 September, the end of that contribution period. From 1 October they drop out of coverage unless their wage falls back under the ceiling. Do not stop deducting mid-period. That is one of the commonest payroll errors ESIC inspectors find.

Exits. When an employee leaves, enter the date of exit on the portal so the system stops expecting contributions for them. Their IP number stays valid and moves with them to the next covered employer. An insured person who loses a job involuntarily may be able to claim unemployment allowance, so record the reason for leaving accurately.

ESIC alongside EPF. ESIC is separate from the Employees' Provident Fund. EPF covers establishments with 20 or more employees and builds a retirement corpus. ESIC covers health and income protection from 10 employees for workers within its wage ceiling. A 25-worker unit will usually be registered with both, and a 12-worker unit may be covered by ESIC alone.

What your employees get: ESIC benefits

ESIC's benefits page lists the main entitlements:

Main ESIC benefits for insured persons

Benefit	What is paid	Key condition
Medical benefit	Full medical care for the IP and family at ESIC hospitals and dispensaries	From the first day of insurable employment
Sickness benefit	70% of wages for up to 91 days a year	Contributions for 78 days in the matching contribution period
Extended sickness benefit	80% of wages (up to 2 years) for 34 long-term diseases	Specified diseases, certified by ESIC
Maternity benefit	Full wage for 26 weeks (extendable by one month on medical advice)	Contributions for 70 days in the two preceding contribution periods
Disablement benefit	90% of wages: temporary while disabled; permanent as monthly payment by loss of earning capacity	Employment injury; no contribution condition
Dependants' benefit	Monthly pension to dependants, up to 90% of wage	Death from employment injury or occupational disease
Confinement expenses	₹15,000 per case	Where ESI facilities are not available
Unemployment allowance	Cash allowance under RGSKY / ABVKY and rehabilitation	Involuntary loss of employment, subject to scheme conditions

Medical benefit

What is paid

Full medical care for the IP and family at ESIC hospitals and dispensaries

Key condition

From the first day of insurable employment

Sickness benefit

What is paid

70% of wages for up to 91 days a year

Key condition

Contributions for 78 days in the matching contribution period

Extended sickness benefit

What is paid

80% of wages (up to 2 years) for 34 long-term diseases

Key condition

Specified diseases, certified by ESIC

Maternity benefit

What is paid

Full wage for 26 weeks (extendable by one month on medical advice)

Key condition

Contributions for 70 days in the two preceding contribution periods

Disablement benefit

What is paid

90% of wages: temporary while disabled; permanent as monthly payment by loss of earning capacity

Key condition

Employment injury; no contribution condition

Dependants' benefit

What is paid

Monthly pension to dependants, up to 90% of wage

Key condition

Death from employment injury or occupational disease

Confinement expenses

What is paid

₹15,000 per case

Key condition

Where ESI facilities are not available

Unemployment allowance

What is paid

Cash allowance under RGSKY / ABVKY and rehabilitation

Key condition

Involuntary loss of employment, subject to scheme conditions

For employers there is a practical upside too. An insured woman's maternity pay comes from ESIC, so she cannot claim it again from you. Employment injuries are compensated by ESIC rather than through a separate employee compensation claim against you.

How the rules apply to common businesses

Shops, restaurants and salons. These are covered as establishments once they have 10 or more employees, counting kitchen staff, helpers, cleaners and part-timers on the payroll. A restaurant with eight staff that hires two extra waiters for the wedding season becomes coverable in the month the headcount reaches ten.

Startups and IT services. Many tech employees earn above the ceiling, so a 30-person software firm may have only a handful of insured persons, such as office assistants, drivers and housekeeping staff. The firm is still covered and must register, then pay contributions only for staff within the ceiling.

Contractors and manpower agencies. Security agencies, housekeeping contractors and labour suppliers register in their own name and pay six months' advance contribution at registration, as ESIC's help file requires. Principal employers should check the contractor's code and challans every month.

Micro units below 10 employees. Since the Code came into force, a small workshop or clinic with fewer than 10 employees can join voluntarily if the employer and employees agree. This gives workers ESIC hospital access at a cost of 3.25% plus 0.75% of wages. That is often cheaper than private group health insurance for low-wage staff.

Helping workers claim benefits

Employees claim most benefits directly from ESIC, but the employer's records decide whether the claim succeeds. For sickness benefit, the worker gets a certificate from the ESIC dispensary or an authorised doctor, and the branch office checks the contribution days you have paid. For maternity, the branch office checks contributions and the expected date of confinement. For an injury at work, you must report the accident through the portal with the details. The worker's temporary disablement benefit is paid at 90% of wages with no waiting period, but processing depends on your report. Keep your monthly filings current and your registers accurate. A worker who cannot claim because the employer did not pay or report can complain to ESIC, and the Corporation can recover the cost of benefits from the employer.

Common mistakes and how to fix them

Waiting for an inspection. Some employers stay unregistered after crossing 10 employees and hope ESIC never notices. When it does, through a complaint, an injury or data-matching with GST and EPFO, ESIC assesses contributions from the date you became coverable, plus interest and damages. Register as soon as you cross the threshold.

Counting only low-paid staff. The 10-employee test counts everyone, including managers and contract workers. Only the contributions are limited to employees within the wage ceiling.

Not covering contractors' workers. The principal employer is responsible for ESI on workers supplied through contractors if the contractor fails to pay. Ask contractors for their ESIC code and monthly challans, and keep copies.

Creating duplicate IP numbers. Always search by Aadhaar before registering a new joiner. Duplicates split a worker's contribution record and delay benefits.

Ignoring the Code's wage definition. If more than half of a worker's pay is in excluded allowances, the excess counts as wages under the Code. Restructure pay slips or contribute on the correct base.

Official links

• ESIC employer portal (sign up / login)Employer and employee registration, monthly contributions
• Employer registration help fileScreen-by-screen guide
• ESIC contribution ratesRates, periods, due date
• ESIC coverageWage ceiling and covered establishments
• ESIC benefitsBenefit rates and conditions
• ESIC circular — Code on Social Security in force28 November 2025

What to do next

Count your employees, including contract staff, and check their monthly wages against the ₹21,000/month ceiling. If you are covered, register on the ESIC portal today, enrol each eligible worker and set a monthly reminder for the 15th. Check your other payroll registrations alongside: EPF, gratuity and professional tax. Use the salary slip generator so each payslip shows the ESI deduction clearly.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

Who needs ESIC registration in 2026?

Any factory or establishment employing 10 or more employees must register, and since the Code on Social Security came into force on 21 November 2025, coverage applies pan-India rather than only in notified areas. Establishments with fewer than 10 employees can join voluntarily, and those carrying on a hazardous process are covered even with one employee. Employees earning up to ₹21,000/month are insured.

What is the ESIC contribution rate?

The employer pays 3.25% and the employee 0.75% of wages, 4% in total, unchanged since 1 July 2019. Employees whose average daily wage is up to ₹176 a day pay nothing, but the employer still pays its share. Contributions for a month are due by the 15th of the following month.

What is the ESIC wage limit?

Employees earning up to ₹21,000/month in wages are covered, or ₹25,000/month for persons with disability. The limit has applied since 1 January 2017. If an employee's wage rises above the ceiling in the middle of a contribution period, they stay covered and contributions continue until that period ends.

Is ESIC registration free?

Yes. There is no fee to register an employer or an employee on the ESIC portal. The registration letter (C-11) and the 17-digit employer code are generated online in real time. The only exception is manpower suppliers, security agencies and contractors, who must pay six months' advance contribution after the code is generated.

How does an employee get an ESIC IP number?

The employer registers each eligible employee on the ESIC portal, entering Aadhaar, family details, nominee and preferred dispensary. The system issues a 10-digit Insurance Number (IP number) and an e-Pehchan card. The employee then uses it for treatment at ESIC hospitals and dispensaries. The IP number stays the same when the employee changes jobs.

Does a new private limited company need separate ESIC registration?

No. Companies incorporated through SPICe+ since 23 February 2020 get their ESIC registration number automatically through the AGILE-PRO-S form. They still have to register employees and start paying contributions once they cross the coverage threshold. Firms, LLPs and proprietorships register directly on the ESIC portal or through the Shram Suvidha portal.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 7 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Contribution — Employees' State Insurance Corporation · accessed 7 October 2026
2. 2.Coverage — Employees' State Insurance Corporation · accessed 7 October 2026
3. 3.Information — Benefits — Employees' State Insurance Corporation · accessed 7 October 2026
4. 4.Employer and employee registration through ESIC portal — help file — Employees' State Insurance Corporation · accessed 7 October 2026
5. 5.Implementation of the Code on Social Security, 2020 (circular N-11011/2/2025-BFT-II) — Employees' State Insurance Corporation · accessed 7 October 2026
6. 6.Labour Codes backgrounder (December 2025) — Press Information Bureau · accessed 7 October 2026
7. 7.Social Security for Unorganised Workers — PIB release, 18 December 2025 — Ministry of Labour & Employment (PIB), copy hosted by Simpliance · accessed 7 October 2026
8. 8.The Social Security (Central) Rules, 2026 — G.S.R. 344(E) — StaffNews · accessed 7 October 2026
9. 9.ESI wage ceiling holds at ₹21,000 for FY 2026-27 — IndianHRM · accessed 7 October 2026