The Employees’ State Insurance (ESI) scheme is a self-financing social security and health insurance framework administered by the Employees’ State Insurance Corporation (ESIC) under the ESI Act, 1948. Employers that cross the coverage threshold must register on the ESIC portal and contribute monthly so that eligible employees receive medical, sickness, maternity, disablement and dependant benefits. This guide explains ESIC applicability, the wage limit, contribution rates, the registration process and ongoing compliance for 2026.<\/p>\n
ESIC registration is the statutory enrolment of an eligible establishment and its employees under the ESI Act. On registration, the employer is allotted a 17-digit ESI code number, and each covered employee is issued an insurance number that links them and their family to the ESIC network of dispensaries and hospitals. Registration is mandatory once an establishment becomes coverable; it is not optional, and delayed or non-registration attracts interest and damages.<\/p>\n
Coverage depends on the number of persons employed and the nature of the establishment, read together with the state notification that applies to it. The commonly applied thresholds are as follows.<\/p>\n
Because the applicable threshold and the classes of covered establishments vary by state, the correct position should always be confirmed against the notification in force for the state where the unit operates. Once an establishment crosses the relevant threshold, the employer must complete ESI registration within 15 days.<\/p>\n
ESI covers employees whose monthly gross wages do not exceed the prescribed ceiling. For 2026 the position is:<\/p>\n
An employee earning above the ceiling is outside coverage. Importantly, if a covered employee’s wages rise above Rs 21,000 mid-way through a contribution period, contributions must continue until the end of that period. The two contribution periods run from April to September and from October to March.<\/p>\n
The contribution rates have remained unchanged since July 2019 and continue to apply in 2026.<\/p>\n
Employees earning an average daily wage of up to Rs 176 are exempt from paying their own share, but the employer must still deposit its 3.25% contribution for such employees. Contributions are calculated on gross wages actually paid in the month rather than on a notional figure.<\/p>\n
Before starting the online application, the employer should keep the following ready.<\/p>\n
Employer registration is completed online, either directly on the ESIC portal at esic.gov.in or through the Government of India’s Shram Suvidha portal, which offers a common registration for several labour law enrolments. The broad steps are as follows.<\/p>\n
After the establishment is registered, each eligible employee is added on the portal to generate their insurance number and e-Pehchan card, which enables access to ESIC medical benefits.<\/p>\n
Registration is only the starting point; the scheme is driven by timely monthly compliance. Employers should note the following recurring obligations.<\/p>\n