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Home Services Payroll Compliance Employees' State Insurance (ESI)
PAYROLL COMPLIANCE

Employees' State Insurance (ESI) compliance

Registration, monthly contributions, employee enrolment, returns and benefit support under the Employees' State Insurance Act, 1948.

Employees' State Insurance (ESI)
Professional sign-offon every deliverable
Applies toEstablishments with 10+ employees
Wage ceiling₹21,000 / month (₹25,000 for PwD)
Contribution0.75% employee + 3.25% employer
Due date15th of the following month
QUICK ANSWER

What is ESI compliance?

ESI compliance means registering with the Employees' State Insurance Corporation (ESIC), enrolling every employee earning up to ₹21,000 a month, deducting 0.75% of wages from the employee, contributing 3.25% as employer, paying by the 15th of the following month, and reporting accidents and changes on time.

OVERVIEW

How Paalan handles Employees' State Insurance

ESI applies to establishments with 10 or more employees in notified areas, covering employees earning up to the prescribed wage ceiling (currently ₹21,000 a month). Contributions are due by the 15th of the following month, and every coverable employee must be registered from the day they join.

We handle ESI end to end, from registration and sub-codes for new locations to monthly contributions, employee enrolment, accident reporting and responses to ESIC notices.

SCOPE OF SERVICES

What's included

Everything we take ownership of under Employees' State Insurance (ESI).

01

Registration

ESI code registration and sub-codes for branches and new locations.

02

Monthly contributions

Computation, contribution filing and challan generation by the due date.

03

Employee enrolment

Registration of new joiners, family details and e-Pehchan cards.

04

Threshold monitoring

Tracking of employees crossing in or out of the wage ceiling and contribution periods.

05

Accident & benefit support

Accident reporting and support for sickness, maternity and disablement benefits.

06

Notices & inspections

Replies to ESIC notices and support during inspections.

WHO NEEDS IT

Who needs Employees' State Insurance?

  • Establishments with 10 or more employees in ESI-implemented areas
  • Hazardous establishments, even with one employee
  • Factories, shops, hotels, hospitals, educational institutions
  • Principal employers of contract workers
  • Employers with many entry-level employees
Check what applies to you
KEY FEATURES

Why clients choose Paalan for Employees' State Insurance

Contribution-period rules applied correctly
Joiners registered from day one
Wage-ceiling crossings tracked every month
Accident reports filed within the timeline
Benefit claim assistance for employees
Interest and damages exposure monitored
KEY DUE DATES

Employees' State Insurance compliance calendar

Typical statutory timelines. Exact dates vary by state and notification, we maintain the calendar for each of your locations.

ActivityFrequencyDue date
Monthly contributionMonthly15th of the following month
New employee registrationOn joiningFrom the date of joining
Contribution periodsHalf-yearlyApril–September and October–March
Accident reportEvent-basedWithin the prescribed time
RISK OF NON-COMPLIANCE

What happens if Employees' State Insurance is not managed well?

Interest and damages

Delayed contributions attract interest and damages.

Liability for benefits

If an eligible employee is not registered, the employer may be liable for the cost of benefits.

Recovery proceedings

ESIC can initiate recovery for unpaid contributions assessed on inspection.

HOW IT WORKS

Our process

Step 1

Assess

We study your entities, locations, headcount and existing records to map every obligation that applies.

Step 2

Plan

A location-wise compliance calendar and responsibility matrix, agreed with your team.

Step 3

Execute

Registrations, registers, returns and filings handled on time, every time, reviewed by a professional.

Step 4

Report

Regular status reports and an evidence file ready for auditors, inspectors and management.

FAQS

Employees' State Insurance: frequently asked questions

Can't find your answer? Our specialists are a message away.

Pricing on request

Fees depend on your entities, locations and headcount. Share your requirement for a tailored proposal.

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Who is covered under ESI?

Employees earning up to the prescribed ceiling (currently ₹21,000 a month; ₹25,000 for persons with disability) in establishments with 10 or more employees in areas where ESI is implemented.

When are ESI contributions due?

ESI contributions are due by the 15th of the month following the wage month.

What if an employee crosses the wage ceiling mid-year?

Contributions continue until the end of the current contribution period. We track these cases every month so coverage is applied correctly.

What benefits does ESI provide?

Medical care for the employee and family, sickness benefit, maternity benefit, disablement benefit, dependants' benefit after an employment-injury death, and funeral expenses.

Is ESI applicable across India?

ESI applies in areas where ESIC has implemented the scheme, which now covers most districts. We confirm coverage for each of your locations.

Did the ESI wage ceiling change in 2026?

No. While the EPF ceiling rose to ₹25,000, the ESI ceiling remains ₹21,000 a month (₹25,000 for persons with disability).

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