# ESIC Registration & Monthly Contributions

> Under the Code on Social Security, ESIC applies to establishments with 10 or more employees across India. Employees earning up to ₹21,000 a month (₹25,000 for persons with disability) are covered, with contributions of 3.25% by the employer and 0.75% by the employee, paid monthly by the 15th. Covered employees get medical care, sickness, maternity, disability and dependants' benefits.

Practice: Labour Law & HR Compliance — https://www.industax.com/services/labour-hr/

ESIC registration is online; each covered employee gets an insurance number and e-Pehchan card. Employees above the wage ceiling aren't covered, but coverage continues to the end of the contribution period if wages rise mid-period.

We register the establishment, enrol employees, file monthly contributions, and handle accident reporting and inspections.

## Key facts

| Item | Detail |
| --- | --- |
| Applies to | Establishments with 10+ employees |
| Wage ceiling | ₹21,000 a month (₹25,000 for persons with disability) |
| Contribution | 3.25% employer + 0.75% employee |
| Due date | 15th of the following month |

## Who needs this

- Employers with 10+ employees
- Factories, shops, restaurants and offices
- Employers with low-wage staff

## What's included

- ESIC registration
- Employee enrolment
- Monthly contribution filing
- Inspection support

## Documents

- Entity registration and PAN
- Employee details
- Salary register

## Process

1. **Register** — Establishment code obtained.
2. **Enrol** — Employees registered.
3. **Pay** — Monthly contributions filed.

## FAQs

### Is ESIC mandatory for an IT company?

Yes, if it has 10 or more employees in total; only employees earning up to the wage ceiling are covered, so many IT companies have few or no covered employees.

### Can employees opt out of ESIC?

No. Coverage is mandatory for eligible employees in covered establishments.

### What is the penalty for late ESIC payment?

Interest at 12% a year and damages, plus possible prosecution for persistent default.

## Official sources

- ESIC: https://www.esic.gov.in/
- Ministry of Labour & Employment — Labour Codes: https://labour.gov.in/

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Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.