ESI applicability, contributions & collection
Applicability of ESI in Karnataka
Under Section 2(12) the Act is applicable to factories employing 10 or more persons. Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings, newspaper establishments, and Private Medical and Educational Institutions employing 10 or more persons (in Karnataka).
Areas covered under ESIC Scheme
The ESI Scheme has covered the entire Karnataka State.
Wage limit for coverage
The current wage limit for ESI coverage is Rs. 21,000/- per month (Rs. 25,000/- per month for disabled persons).
ESI Contribution Rates
- Employees’ contribution — 0.75% of the wages.
- Employers’ contribution — 3.25% of the wages.
- Total contribution (employee + employer) — 4.00% of the wages.
Manner of Contribution
The E.S.I. Scheme being contributory in nature, all employees in factories or establishments to which the Act applies shall be insured in the manner provided by the Act. The contribution payable to the Corporation in respect of an employee comprises the employer’s contribution and the employee’s contribution at specified rates. Currently, the employee’s contribution is 0.75% of wages and the employer’s contribution is 3.25% of wages paid / payable in respect of employees in every wage period.
Employees earning a daily average wage of up to Rs. 137/- are exempted from payment of the employee’s contribution; the employer contribution still applies in respect of such employees.
Collection of Contribution
An employer is liable to pay his contribution in respect of every employee and deduct the employee’s contribution from the wages bill, and shall pay these contributions at the above specified rates to the Corporation within 15 days of the last day of the calendar month in which the contributions fall due. Payment can be made online.
Documents for ESI registration
- List of Directors / Partners and Address.
- MoA, AoA, CoI (if it is a Company).
- Shops and Establishment Act — Registration Certificate.
- Certificate of Incorporation / Partnership Deed / Trust Deed (as applicable).
- Board Resolution authorising ESI registration (for companies).
- PAN Card copy — Company's / Firm's / Entity's.
- PAN Card copy, Aadhaar Card copy and photo of all Directors / Partners / Proprietor.
- Rental agreement and office electricity bill for the establishment.
- Salary register from day when number of employees crossed 10 or more.
- ESI Applicable Member Details in Annexure 2 format.
- Bank statement (recent month) and cancelled cheque.
- Contact details — Email & phone number.
- Date of coverage in DD/MM/YYYY format — i.e., date from when ESI becomes applicable to your establishment.
- ESI Nomination — Information of employees with salary below Rs. 21,000 (or Rs. 25,000 for disabled employees).
- Number of existing employees in the format below:
- a) Number of Male Employees: _______
- b) Number of Female Employees: _______
- Number of employees to whom ESI is applicable in the format below:
- a) Number of Male Employees: _______
- b) Number of Female Employees: _______
- Digital Signature of the authorised signatory of the entity.
- Attachment pertaining to ESI:
- a) Employee-wise ESI registration details.
- b) OR Employee details with IP number (if applicable).
Other registrations we handle
Talk to our team.
A 30-minute call with our team — no deck, no follow-up email blasts. Just a read on whether we’re the right team to handle your ESI registration.