ESI Return
The Employees’ State Insurance (ESI) scheme is a social security and health insurance plan designed for Indian workers. It provides medical, monetary, and other benefits to employees and their families. The scheme is managed by the Employees’ State Insurance Corporation (ESIC), an autonomous body under the Ministry of Labour and Employment, Government of India.
What is an ESI Return?
An ESI return is a periodic report submitted by employers to the ESIC. This report includes details about the employees covered under the ESI scheme and the contributions made by both the employer and the employees. Filing ESI returns is mandatory for all establishments registered under the ESI Act, 1948.
Who Needs to File ESI Returns?
- Employers with 10 or more employees (20 in some states).
- Employers must register their establishment under the ESI Act and obtain an ESI code.
- Employees earning a monthly wage of up to INR 21,000 (INR 25,000 for employees with disabilities) are covered under the scheme.
Components of ESI Returns
Employee Contribution:
- 0.75% of the employee’s wages.
- Deducted from the employee’s salary.
Employer Contribution:
- 3.25% of the employee’s wages.
- Paid by the employer.
Benefits of ESI Compliance
Medical Benefits:
- Comprehensive medical care for employees and their dependents.
Sickness Benefits:
- Cash compensation during medical leave.
Maternity Benefits:
- Maternity leave with pay for female employees.
Disability Benefits:
- Monthly payments for permanent disability.
Dependents’ Benefits:
- Monthly pension for dependents in case of the employee’s death.
Filing ESI Returns: Step-by-Step Process
Register on the ESIC Portal:
- Visit the ESIC website.
- Register your establishment to obtain the 17-digit unique employer code.
Login to the ESIC Portal:
- Use the employer code to log in.
Collect Employee Details:
- Maintain accurate records of all employees covered under the ESI scheme.
- Ensure that employee details, such as wages and contributions, are up to date.
Generate Challan:
- Calculate the total contribution (employee + employer) for each month.
- Generate a challan using the online portal.
Make Payment:
- Pay the calculated amount through online banking or designated bank branches.
- Ensure the payment is made before the 15th of the following month.
Submit ESI Return:
- After making the payment, log in to the ESIC portal.
- Navigate to the ‘Monthly Contribution’ section.
- Upload the required details and submit the return.
Deadlines for Filing ESI Returns
Monthly Returns:
- Contributions for each month must be paid and returns filed by the 15th of the following month.
Half-Yearly Returns:
- April to September: Due by 11th November.
- October to March: Due by 12th May.
Penalties for Non-Compliance
Failure to comply with ESI regulations, including late payment of contributions or failure to file returns, can result in penalties, including:
- Interest on Delayed Payment:
- 12% per annum on the due amount.
- Penalties:
- Up to 25% of the contribution amount.
