ESI RETURN FILING, Registration, Due Date, ESI Scheme
According to the ESI Act, 1948 ESI is mandatory for business entities employing 20 or more individuals, also employees earning not more than Rs. 15,000 monthly need to contribute 1.75% of their pay towards the ESI contribution, whereas 4.75% will be contributed towards their ESI by the company, the total share being 6.5%.
The ESI scheme provides various benefits to the employees, has a large network of dispensaries, and hospitals nationwide run by the concerned state governments for facilitating speedy and efficient medical care. In addition, to the medical care, insured persons also benefit the sick pay benefits. Registration with ESI also improves worker’s morale and ensures employee retention.
Who should register for the ESI SCHEME?
ESI is managed by the Employees’ State Insurance Corporation (ESIC) and mandated by the Ministry of Labour and Employment of the Government of India. Both an employer and employee contribute a shared 4% of the employee’s gross pay towards the ESI fund each month.
Any business establishment in India employing 10 or more people should voluntarily register with the ESIC within 15 days from the date of applicability.
How to register your business for the ESI scheme
To make the registration process easy for business owners, the statutory body has made the registration process fully online. No physical copies of documents are required. However, there are a few soft copies of documents that you should have on hand to ensure a quick registration.
Required Documents for ESI Registration
- Certificate of registration
- Certificate of incorporation
- Company PAN Employees PAN
- Cancelled Cheque
- List of all employees employed by the company and their salary details
- List of all shareholders and directors of the company
- Light Bill
- Rent Agreement (if rental)
- Memorandum of association and articles of association of the company
ESI Returns
ESI Registered employers are required to submit ESI Returns every sixth month, providing critical information about the employees insured under the scheme, their salaries, and the contributions made by both the employer and the employees. These returns play a key role in verifying the accuracy of contributions to the ESI scheme and ensuring that insured employees are accessing the benefits they’re entitled to.
It’s mandatory for all employers registered under the ESI scheme to file these returns on time, as any delay or failure to do so can result in penalties and legal actions.
ESI Returns offers several significant benefits for both employers and employees under the Employee State Insurance (ESI) scheme
- Compliance: Timely filing of ESI Returns ensures compliance with the ESI Act, helping employers avoid legal penalties and fines associated with non-compliance.
- Record Keeping: It maintains an accurate and official record of all contributions made by and on behalf of the employees, which can be referenced in future audits or clarifications.
- Benefit Entitlement: Filing returns is essential for the validation of employees’ entitlement to the various benefits under the ESI scheme, such as medical, maternity, disability, and dependent benefits.
- Transparency: Regular filing promotes transparency in the financial and administrative aspects of the ESI contributions, enhancing trust between employers and employees.
- Dispute Resolution: In case of any discrepancies or disputes regarding ESI contributions or benefits, filed returns serve as a reliable reference point for resolution.
- Ease of Benefit Processing: Accurate and timely filed returns facilitate the smooth processing of claims and benefits for employees, ensuring they receive support when needed without unnecessary delays.
- Financial Health: For businesses, regular compliance with ESI regulations through return filing reflects positively on their financial and operational health, building credibility with stakeholders.
- Updates and Adjustments: Filing returns allows employers to update or correct any discrepancies in employee details or contribution amounts, keeping the ESI records accurate and current.
ESI Return Due Dates
For the contribution period from April to September, returns must be filed by the 12th of November. For the contribution period from October to March, the filing deadline is the 12th of May.
Required Documents for ESI Returns
- Attendance register
- Form 6
- Register of wages
- Accident register
- Cancelled cheque of the company
- Inspection book
- Company PAN Card
- Monthly challans and returns for ESI
FAQ
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How do I file an ESIC return?
Ensure that all employee information and contribution details are accurate and complete. Submit the Return: After reviewing and ensuring all data is correct, submit the return on the ESIC portal. This process is entirely online, and no physical documents need to be submitted.
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What is the due date for filing ESI return?
For the contribution period from April to September, returns must be filed by the 12th of November. For the contribution period from October to March, the filing deadline is the 12th of May.
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How do I file an ESIC return?
Ensure that all employee information and contribution details are accurate and complete. Submit the Return: After reviewing and ensuring all data is correct, submit the return on the ESIC portal. This process is entirely online, and no physical documents need to be submitted.
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ESIC return compulsory?
Businesses that are ESI registered are required to file ESI returns every month. It is governed by the ESI Act of 1948; ESIC (Employees’ State Insurance Corporation) pays benefits to employees in the event of sickness, death, disablement, injury, and other unforeseen circumstances.
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How is ESI calculated?
ESI is calculated on the gross salary paid to the employees. As per the ESI Act, the employer contributes 3.25% of the wages, and the employee contributes 0.75% of the wages to the contributory fund, which is then used to provide insurance cover to the employees in difficult times.
