The ESIC, or Employees’ State Insurance Corporation, is the statutory body that runs the ESI scheme. It is an autonomous corporation under the Ministry of Labour and Employment, and it owns and operates the hospitals, dispensaries and branch offices that deliver ESI benefits, as well as the portal employers use to register and file returns.

What the ESIC does

It collects contributions, maintains the insured-person records, runs the medical infrastructure, and pays the cash benefits: sickness benefit, maternity benefit, disablement benefit, dependants’ benefit and the funeral expense. It also decides coverage questions, conducts inspections, and levies interest and damages when an employer deposits late.

For an employer, the ESIC is who you register the establishment with once you cross the coverage threshold, and whose portal you use to generate the monthly challan and file the half-yearly returns. For an employee, it is the issuer of the ESI number and the operator of the dispensary or hospital where care is actually received.

ESIC vs ESI

ESI is the scheme, its contributions, benefits and rules. The ESIC is the organisation that administers it. You are covered under ESI; you deal with the ESIC.

Frequently asked questions

Is the ESIC contribution rate different from ESI?

No. The rates are the same because they are the same scheme: 0.75% employee and 3.25% employer on gross wages, within the wage limit.

How does an employer register with the ESIC?

Online through the ESIC portal, within 15 days of the Act becoming applicable to the establishment. Registration generates a 17-digit employer code.

What returns does the ESIC require?

A monthly contribution challan, and a return of contributions for each of the two contribution periods, April to September and October to March.

Calculate contributions with the ESI Calculator. For where ESIC filing sits in the monthly cycle, see our guide to payroll processing and our overview of payroll software.