Central regulation

Employees' State Insurance (ESIC) Registration

Establishments with 10+ employees earning up to Rs 21,000/month wage must register under ESIC; employer share 3.25%, employee 0.75%.

Definition

Establishments with 10+ employees earning up to Rs 21,000/month wage must register under ESIC; employer share 3.25%, employee 0.75%.

What it means in practice

Employees' State Insurance (ESIC) Registration is administered by Employees' State Insurance Corporation (ESIC). The obligation is grounded in Employees' State Insurance Act, 1948 + Notification SO 423(E) dated 22 Jan 2017 (Section 1(5) + Sec 2(12)).

Most powerloom workers fall under the Rs 21k wage ceiling — full wage roll typically attracts ESIC.

Triggers (applicability predicates)

These predicates are evaluated by Compliance Radar's applicability engine against a business profile to decide whether this rule applies.

Deadlines and penalty

Cadence: monthly

Penalty for default: Failure to pay contributions: interest @12% p.a. + damages 5–25% (Sec 85B); prosecution under Sec 85.

Citations