All you need to know about the Procedure of Filing ESI Return

Employees State Insurance (ESI) of India is a social system having different aspects and features which is made to provide socio-economic security to the workers and their dependents. It is brought into force by the Central Government after the independence of India. It is a social security scheme and a health supportive insurance plan for the employees in the organized sector that provides the employees with the lifetime medical benefits and disablement benefits on the contribution by both the employer and the employee while the employee is working in such sector. This article will provide with the information regarding all you need to know about the procedure of filing ESI return. 

What is ESI?

Employee State Insurance (ESI) is a self-financing social security scheme which provides health insurance plans to the workers in India, offering them with medical benefits and disablement benefits. ESI is governed by the Employee State Insurance Act, 1948 and is managed by the Employees State Insurance Corporation (ESIC) under the Ministry of Labour and Employment. The ESIC is required to manage the funds as per the rules and regulations provided under the ESI Act.

ESI Registration

The ESI ensures many benefits to the employees under its scheme. All the establishments, factories and units having 10 or more employees and having a payout wage rate of less than Rs. 21,000 per month is required to get registered under the ESI Act within 15 days of the applicability of the act.

According to the Employees State Insurance Corporation (ESIC) Act, every employee who is earning Rs 21,000 per month or less, have to contribute 1.75% of his/her pay towards ESI, whereas, the employer or the company has to contribute 4.75% of the wages paid.

The procedure for ESI Registration is as follows: –

Step 1:

The applicant is required to go on th and fill sign up form. The details required to be filled are, company name, email address, principal employer name, region or state etc.

Step 2:

The applicant shall receive the temporary log in credentials through a mail from the ESIC department, which is used to login in to the website.

Step 3:

 Further, the applicant is required to select “New Employer Registration” on the dashboard and the type of unit that is a “Factory or Shop Establishment”.

Step 4:

The next step is to complete the employer registration Form- 1 by filling all the mandatory details required. (The applicant is required to fill the fields marked with asterisk*)

Step 5:

Upon the verification, a registration number of 17 unique digits shall be provided to the applicant which shall be used for future filing of ESI.

Since the registration is mandatory for all the entities with 10 or more employees, an organisation can at anytime update the details of employee additions, payout changes and etc. to the ESI department by directly logging in to the official web portal of ESIC.

Documents required for ESI Registration

The following documents are required to be submitted for the ESI Registration: –

• List of partners, directors and shareholders of the company.
• List of the employees along with their monthly pay details.
• Certificate of registration of a license obtained by the firm under Shop and Establishment Act or Factory Act.
• Registration Certificate of Firm i.e. private company, partnership firm or LLP.
• Memorandum of Association (MOA) and Articles of Association in case of a private company.
• Partnership deed in case of partnership firm or LLP.
• PAN Card details of the employees and business.
• Bank details of business with the updated details of transaction regarding wages paid.

The procedure of filing ESI Return

Entities operating under ESIC registration are required to file returns every year. During this process, they are required to submit all the changes happened or done in the preceding year. The entities are also required to present the details of ESI contribution paid and must be done in every 6 months. The last date of submission of ESI return is 11^th November for the period of April to September and 11^th May for the period of October to March. 

The procedure of filing ESI return filing is as follows: –

Step 1:

The applicant is required to use the credentials to log in to ESIC online web portal^[1].

Step 2:

On the Employer Dashboard, a list of actions is displayed to which many changes can be made to the existing records like other expenses, additions of new employee records, reporting accident etc. to file monthly return, the applicant is required to go on “File Monthly return” option.

Step 3:

Once the employee details like inspection records, payment records, attendance etc. are updated, the applicant is required to enter the bank details and click on submit to file the monthly ESI contribution.

Step 4:

A Challan for the made transaction is generated which can be download by clicking on download challan button, once the successful payment of return is made.

Documents required for ESI Return

The following documents are required to be submitted for filing ESI return:

• Register for Form 6.
• Register of wages.
• Attendance registers.
• Register of any accident on the premises or place of work/ business.
• Inspection book.
• Monthly Challans and Returns submitted for ESI.

How is obtaining ESI Registration helpful to employees?

The ESI scheme not only provides medical health care to the employees but it also provides with financial assistance to the workers to get compensated for any loss of wage during the period of employment injury, sickness, maternity etc. also, the scheme covers the medical health care of the family members of the employee as well.

Conclusion

ESI registration is mandatory for a company having 20 or more than 10 employees working with it. Entities registered under ESIC are required to file their returns every year. The procedure of Filing ESI return has been discussed above and the employer can fill the ESI return through the official website of the ESIC.

Also, Read: Incorporate Section 8 Company: Concept & Process to Register