ESIC Registration in India: A Complete Guide for 2025

In 2025, the Employees' State Insurance Corporation (ESIC) continues to serve as India's premier social security scheme, providing essential medical, financial, and welfare benefits to workers in the organized sector. Administered under the Employees' State Insurance Act, 1948, by the Ministry of Labour and Employment, ESIC registration ensures employers and employees gain access to comprehensive coverage against contingencies like sickness, maternity, disability, and occupational hazards. With the launch of SPREE 2025 (Scheme for Promotion of Registration under Employees' State Insurance), the focus is on expanding coverage to over 5 crore additional workers through simplified digital processes, incentives for voluntary enrollment, and integration with platforms like UMANG and Aadhaar. This guide covers eligibility, processes for employers and employees, documents, fees, benefits, and compliance, helping businesses and workers navigate the fully online system at esic.gov.in.

What is ESIC, and Why Register in 2025?

ESIC is a statutory body offering a multi-faceted social security net to low- and middle-income workers. It provides cashless medical treatment at over 1,500 ESIC hospitals and tie-up facilities, along with benefits like sickness allowance (70% of average daily wage for up to 91 days), maternity benefits (100% wage for 26 weeks), and dependent pensions. Registration is mandatory for applicable establishments, fostering employee welfare and employer compliance. In 2025, SPREE 2025 introduces one-time incentives (up to ₹500 per employee for voluntary coverage), Aadhaar-based auto-verification, and relaxed thresholds for gig workers and MSMEs, aiming to boost enrollment amid economic recovery. Non-registration invites penalties up to ₹5,000 for employers and interest on delayed contributions at 12% per annum.

Eligibility for ESIC Registration

ESIC applies to non-seasonal factories and establishments (shops, hotels, restaurants, cinemas, etc.) with:

• 10 or more employees (20 or more in states like Maharashtra, Chandigarh, and Uttar Pradesh as of 2025).
• Employees earning up to ₹21,000 per month (₹25,000 for persons with disabilities).

Voluntary coverage extends to smaller units under SPREE 2025. Employees must be Indian citizens or eligible expatriates in insurable employment. Apprentices under the Apprenticeship Act, 1961, and family members are excluded from direct coverage but benefit indirectly. Establishments incorporated post-February 23, 2020, via MCA are auto-registered if eligible.

Employer Registration Process: Step-by-Step

Employers must register within 15 days of becoming applicable. The process is 100% online via the ESIC portal, taking 7–15 days.

• Sign Up on ESIC Portal: Visit esic.gov.in, click "Employers" > "Employer Registration" > "Sign Up." Enter PAN, mobile, email, and captcha; verify via OTP. Create login credentials.
• Fill Form-01 (Employer Registration): Log in, select "New Registration." Provide details: establishment name, address, PAN/TAN, bank info, employee count, nature of business. Aadhaar linkage auto-fills for faster processing.
• Upload Documents: Attach scans (PDF/JPG, <2MB) and e-sign using DSC or Aadhaar OTP.
• Pay Advance Contribution: Deposit 6 months' estimated ESI (3.25% of wages) via SBI net banking or challan. This generates a temporary code.
• Verification and Approval: ESIC verifies (auto for low-risk; manual inspection for large units). On approval, receive Form C-11 (registration letter) via email with a 17-digit code—your permanent ESIC number.

Post-registration, generate employee Pehchan cards and file monthly returns.

Employee Registration Process: Step-by-Step

Once the employer is registered, employees are auto-enrolled but must complete personal registration for benefits.

• Employer Initiates: Employer adds employee details in the ESIC portal under "Employee Registration" using Aadhaar/PAN.
• Fill Form-01 (IP Registration): Employee logs in via "Insured Person Login" (or employer-assisted). Enter personal info: name, DOB, address, family details, bank account, Aadhaar.
• Upload Documents: Submit self-attested scans; e-sign.
• Temporary ID Issuance: Get a 13-digit Insurance Number (temporary) instantly.
• Pehchan Card Generation: Employer downloads counterfoil; employee attests photo/signature and submits to ESIC branch. Permanent card arrives in 7–10 days, enabling cashless treatment.

Under SPREE 2025, gig workers can self-register via the UMANG app with employer verification.

Documents Required for ESIC Registration

For employers and employees, prepare self-attested copies. Digital uploads are mandatory.

• For Employers: PAN/TAN, incorporation certificate (for companies), rent agreement/utility bill (address proof), bank cancellation cheque, balance sheet (if applicable), Form-01 signed by authorized signatory, DSC/Aadhaar for e-sign.
• For Employees: Aadhaar/PAN/Voter ID (ID proof), bank passbook, passport-size photo, family details (for dependents), Form-01 with employer attestation.

No fees for registration itself; only advance contributions apply.

Fees and Contributions in 2025

Registration is free, but contributions fund the scheme. Rates unchanged: Total 4.75% of gross wages (up to ₹21,000 ceiling)—employer pays 3.25%, employee 0.75% (deducted from salary). For disabled employees, the ceiling rises to ₹25,000.

• Advance Payment: 6 months' estimated contribution at registration (e.g., for 10 employees at ₹15,000 avg. wage: ~₹1.42 lakh employer share).
• Monthly Returns: File by the 15th of next month via the portal; pay via SBI branches or online.
• Two Periods: April–September (benefits October–March); October–March (benefits April–September).

SPREE 2025 waives advance for voluntary small units (<10 employees). Interest on delays: 12% p.a.

Benefits of ESIC Registration in 2025

Registered members' access:

• Medical: Cashless treatment at ESIC hospitals/dispensaries; OPD/IPD coverage up to ₹2 lakh/year.
• Cash Benefits: Sickness (₹140/day), maternity (full wage), unemployment (50–80% wage for 3 years via Rajiv Gandhi Atal Bima Yojana integration).
• Other: Funeral expenses (₹15,000), disability pension (90% wage), and dependent benefits.
• Family Coverage: Immediate family included; enhanced telemedicine under Ayushman Bharat tie-up.

SPREE 2025 adds portable coverage for migrant workers and digital claim processing via mobile app.

Post-Registration Compliance in 2025

• Monthly Returns: File Form-5 (employee additions/deletions) and challans by 15th.
• Half-Yearly Returns: Form-7 by 12th of November/May.
• Updates: Report changes (wage, address) within 7 days; annual muster roll submission.
• Audits: ESIC inspections; maintain records for 5 years.
• Penalties: ₹400–₹1,000 per violation; damages up to 100% of arrears.

Use ESIC's WhatsApp channel for queries; integrate with EPFO for seamless compliance.

Recent Updates and Changes in 2025

• SPREE 2025 Launch: Approved in early 2025, it promotes voluntary registration with incentives, targeting MSMEs and the gig economy. Includes Aadhaar-PAN linkage for auto-enrollment.
• Threshold Relaxation: States like Rajasthan reduced to 10 employees uniformly; coverage extended to seasonal workers.
• Digital Enhancements: Full e-filing; Pehchan card via DigiLocker; AI-based claim approvals.
• Wage Ceiling Review: No hike, but proposals for ₹25,000 general ceiling under discussion post-Budget 2025.

Monitor esic.gov.in for notifications; Budget 2025 allocated ₹4,500 crore for ESIC expansion.