ESI Return Online Filing

The Employee's State Insurance (ESI) is a comprehensive social security scheme designed to provide financial and medical benefits to Indian workers and their families in case of illness, maternity, disability, or death resulting from a work injury. Employers with at least 10 employees must register for ESI, and all employees earning Rs. 15,000 or less per month must contribute to the scheme. ESI returns are filed semi-annually, and India Filings can assist businesses with ESI registration, returns, and compliance. ReminDue is a helpful tool for tracking ESI due dates and payment deadlines.

• PAN card of the organization
• A canceled cheque from the company
• Monthly challans and returns submitted for ESI
• Attendance register to maintain a record of employees present or absent
• Form 6 for registration under the ESI Act
• Register of wages to record details of payments made to employees
• Register any accidents on the premises to keep track of workplace accidents and injuries
• Inspection book to record inspections carried out by ESI authorities.

• Companies registered with ESI must file returns twice yearly: from April 1 to September 30 and from October 1 to March 31.
• The returns should be filed within 42 days from the end of each half-year.
• The filing can be done online through Form 5 or offline by visiting the nearest ESI branch office.
• To file ESI returns online, employers should follow these steps:
  • Step 1: Use the user ID, password, and 17-digit code received upon ESI registration to log in to https://www.esic.nic.in/.
  • Step 2: Click 'File Monthly Returns' on the right-hand side of the portal's provisions for modifying employee details.
  • Step 3: Check the employee details and fill in bank details before submitting the monthly ESI contribution.
  • Step 4: After making the contribution, generate a challan and keep it for inspection.
  • Step 5: Tick the checkbox for self-certification under the Monthly Contribution section and submit the returns. Upload a Chartered Accounts certificate if there are more than 40 employees.
• Suppose an employer needs to pay for any of the months in the two periods. In that case, they must contribute the returns physically to the respective ESI branch office or the ESI regional commissioner.
   

Employers can either follow the above steps or contact Filing Buddy to have their ESI return filing done by expert lawyers.

• Form-6 register
• Attendance register of employees
• Wages register
• Accident register
• Inspection book
• The file containing all monthly challans & returns submitted.

ESI registration is mandatory for all commercial establishments, including corporate organizations, factories, cinema theaters, offices, and institutions. However, there often needs to be more clarity regarding the contribution percentage. ESI is deducted from an employee's gross salary, the income earned before tax, and health insurance deductions.

The components of the salary used to calculate ESI include basic pay, dearness allowance, HRA, incentives, special allowances, and more. The employee's contribution rate is 1.75% of the gross income, while the employer's is 4.75%, totaling 6.5% of the wages paid towards ESI contributions.

For example, if an employee earns a gross pay of ₹20,000 per month, the ESI deduction would be calculated as follows:

• Employee's Contribution: 1.75% of ₹20,000 = ₹350 per month
• Employer's Contribution: 4.75% of ₹20,000 = ₹950 per month
• Total Contribution: ₹350 (employee contribution) + ₹950 (employer contribution) = ₹1,300 per month.

If the employee's salary increases to ₹25,000 during any contribution period, the ESI calculation would be based on their new salary.