ESI registration for employers: 10 employees, steps, rates

In short

ESI applies to establishments with 10 or more persons where ESIC provides benefits (most of India; 674 districts by January 2025). Hazardous establishments notified by the government are covered even with one employee.
Employees earning up to ₹21,000 a month (₹25,000 for persons with disability) are covered.
Contribution: employer 3.25%, employee 0.75% of wages. Employees whose average daily wage is up to ₹176 pay no share; the employer still pays.
Register on the Shram Suvidha portal (common Form-I) or the ESIC portal; new companies get their ESIC code through SPICe+. There is no fee.
Pay by the 15th of the following month. Register each employee on or before the day of joining.

When an establishment must register

10 or more persons employed, in any establishment other than a seasonal factory, in an area where ESIC benefits have been notified. Since the Code on Social Security came into force on 21 November 2025, coverage runs from the date the government notifies that ESIC provides benefits there.
Hazardous or life-threatening work notified by the government: covered even with one employee.
Voluntary coverage: an establishment below the limit can join if the employer and a majority of employees agree.
ESIC's FAQ asks employers to register within 15 days of ESI becoming applicable.

ESI has been extended district by district and covered 674 districts by 1 January 2025. In Karnataka the employee limit for establishments is 10.

Which employees are covered

Employee	Covered?
Wages up to ₹21,000 a month	Yes
Person with disability, wages up to ₹25,000 a month	Yes
Wages above the limit at the start of a contribution period	No, for that period

Coverage is decided at the start of each contribution period (or on joining). An employee whose pay rises above ₹21,000 during a period stays covered until the period ends. The ₹21,000 limit has applied since 1 January 2017; we found no notification changing it as of 4 November 2026.

Contribution rates and periods

On the wages for the month, rounded up to the next rupee
Who pays	Rate
Employer	3.25%
Employee	0.75% (nil when the average daily wage is up to ₹176)
Total	4%

Contribution period	Benefit period that follows
1 April to 30 September	1 January to 30 June of the next year
1 October to 31 March	1 July to 31 December

Our PF, ESI and PT calculator shows the ESI share for one salary.

How to register

Companies being incorporated: ESIC registration is part of SPICe+ (AGILE-PRO-S), so the code comes with incorporation.
Others: apply in the common Form-I on the Shram Suvidha portal (one form for ESIC and EPFO), or sign up on the ESIC portal.
Give the establishment's details: PAN, address, nature of work, date of starting, number of employees, the employer's and manager's details, and the bank account.
ESIC generates the 17-digit employer code number and e-mails a registration letter (C-11).
Register each employee on the ESIC portal on or before the day they join, with Aadhaar. The employee's insurance number lapses unless the declaration is completed within 30 days.

There is no fee for ESI registration. Manpower suppliers, security agencies and contractors are asked by ESIC to pay six months' contribution in advance.

After registration: the monthly duties

Duty	When
Monthly contribution (employer and employee share)	Within 15 days of the end of the month, by the 15th
New employees	Registered on or before the day of joining
Late payment	Interest at 12% a year, and damages, under the ESI regulations that continue during the transition to the Code

Questions people ask

Is ESI compulsory for 10 employees?

Yes, for an establishment (other than a seasonal factory) with 10 or more persons in an area where ESIC benefits are notified, which now covers most of India. Notified hazardous work is covered even with one employee.

What is the ESI salary limit?

₹21,000 a month, or ₹25,000 for a person with disability. It has applied since 1 January 2017.

What are the ESI rates?

Employer 3.25% and employee 0.75% of the month's wages, 4% in all. Employees whose average daily wage is up to ₹176 do not pay their share; the employer still pays 3.25%.

Is there a fee for ESI registration?

No. You pay only the monthly contributions once registered.

By when must ESI be paid?

Within 15 days of the end of the month, so by the 15th. Late payment attracts interest at 12% a year and damages.

Do PF and ESI need separate registrations?

Under the Code on Social Security there is one common form (Form-I) on the Shram Suvidha portal for both, and new companies get both codes through SPICe+. PF applies from 20 employees, ESI from 10.

Sources

Written from these official pages and notifications, checked on 4 Nov 2026. Rules change by notification: before you act, check the latest position or ask us.

General information, not legal or tax advice for your case. Parishrama Consulting Services is a private firm, not a government office.

ESI registration for employers: who must register and how