ESIC (Employees' State Insurance Corporation)

What is the Employees’ State Insurance Act, 1948?

The Employees’ State Insurance Corporation (ESIC) is a statutory body under the Ministry of Labour and Employment in India. It manages the ESI scheme, which provides medical, maternity, and financial benefits to employees. For companies employing 10+ people earning below ₹21,000, ESIC registration and regular contributions are mandatory. This guide explores everything employers must know about ESIC in 2025. 

What is the Employees’ State Insurance Act, 1948? 

The ESI Act was enacted to provide social security to workers in case of sickness, maternity, disability, or death due to employment injury. Initiated based on a report by Professor B.P. Adarkar in 1943, the Act laid the foundation for a structured insurance mechanism for India’s workforce. 

Who is Covered Under ESIC? 

Mandatory Coverage: 

• Factories/establishments with 10+ employees (20+ in some states like Maharashtra) 

• Employees earning less than ₹21,000/month (₹25,000/month for disabled employees) 

Exclusions: 

• Entities with fewer than 10 (or 20) employees 

• Employees earning above the wage ceiling 

• Daily wage earners below ₹137/day (partially covered by employer’s contribution) 

ESIC Contribution Rates (2025) 

What are the Benefits of ESI? 

Under Section 46 of the ESI Act, there are six core benefits: 

Sickness Benefit 

• 70% of wages for up to 91 days/year 

• Extended sickness (80% for long-term diseases) 

• Enhanced benefit (100%) for sterilization recovery 

Disablement Benefit 

• Temporary: 90% of wages until recovery 

• Permanent: As per disability extent assessed by the Medical Board 

Maternity Benefit 

• Full wage payment for 26 weeks (extendable by 1 month) 

Medical Benefit 

• Unlimited expenditure for employee & dependents 

• Coverage for retirees (₹120/year premium) 

Dependents’ Benefit 

• Monthly pension to dependents in case of death due to work injury 

Other Benefits 

• Funeral expenses (₹15,000) 

• Confinement allowance 

• Vocational rehabilitation 

• Old-age medical care (₹120/month) 

ESI Registration Process for Employers 

Timeline: Must be completed within 15 days of applicability 

Mode: Fully online 

Steps: 

• Sign up on the ESIC portal 

• Fill in company and employer details 

• Receive login credentials via email 

• Log in → New Employer Registration → Fill establishment details 

• Add employee details and declarations 

• Choose branch office and inspection division 

• Pay the initial contribution to receive C-11 registration certificate 

Documents Required for ESIC Registration 

• Certificate of Incorporation / Factory License / Shop & Establishment Registration 

• PAN (Company & Employees) 

• List of employees with salary and attendance details 

• GST registration 

• Canceled cheque 

• Digital signature of employer 

• Partnership deed or MoA & AoA 

• Shareholder and director details 

• Employer’s Registration Form 

What is the ESI Card (Pehchan Card)? 

The Pehchan Card is a biometric health card issued to the insured person and their dependents, used for availing treatment at ESI network hospitals. It contains the Employee Insurance Number and personal details. 

How to Apply: 

• Log in to the ESIC portal 

• Go to ‘E-Pehchan Card’ section 

• Enter Insurance Number → View → Print counterfoil 

• How to Claim ESIC Benefits 

Eligibility: 

• Must be registered with ESIC 

• Earnings below ₹21,000 (₹25,000 for disabled) 

When to Claim: 

• Upon sickness, maternity, disability, injury, or death 

How to Claim: 

• Visit ESI hospital 

• Present Pehchan card 

• Submit relevant forms and documentation 

Important ESIC Benefit Claim Forms 

 The ESIC scheme plays a critical role in protecting India’s workforce. By ensuring timely registration, accurate contributions, and awareness of claim procedures, employers can foster both compliance and employee welfare. In 2025, aligning with ESIC is not just a legal mandate—it’s a commitment to employee wellbeing. 

Partner with TopSource Worldwide for Seamless ESIC Compliance 

Navigating ESIC registration, contributions, and benefit management can be complex—but you don’t have to do it alone. TopSource Worldwide offers expert payroll and compliance solutions to ensure your business meets all statutory requirements under the ESI Act. 

From employee onboarding to monthly filings, we simplify compliance—so you can focus on growth. 

Get in touch with TopSource Worldwide today and ensure your workforce is fully protected.