ESI Return Filing

Effortless ESI return filing online with Kanakkupillai
Our experts handle the entire ESI return filing process, ensuring accuracy and adherence to ESI corporation regulations.
We guide you in gathering the necessary documents, including challan proofs and wage details.
We ensure timely filing to prevent penalties and potential disruptions with ESI benefits.
Choose Kanakkupillai to file your ESI returns with ease.

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Overview of ESI Return Filing in India

The Employees' State Insurance (ESI) scheme is a comprehensive social security and health insurance initiative introduced by the Indian government under the Employees' State Insurance Act of 1948. The scheme was designed to secure the financial future of the employees and their families in case of sickness, maternity, disability, or workplace injuries. The Employees' State Insurance Corporation (ESIC) administers this scheme to ensure that registered employees can access medical care and cash benefits during contingencies.

Both employers and employees have to contribute a fixed percentage of wages to ESI under this scheme. Numerous benefits are covered, including maternity benefits for female employees, monetary payments for temporary or permanent disability, and medical care for employees and their dependents. In addition, the program provides dependents with financial assistance in the event that an employee passes away tragically as a result of work-related injuries. Employers are required by law to register their businesses, make sure that regular contributions are made, and promptly complete ESI returns. There may be consequences and penalties if you don't file the ESI Returns on time.

What is ESI?

ESI (Employees' State Insurance) is a social security and health insurance scheme introduced by the Indian government under the Employees’ State Insurance Act, 1948. It provides financial protection and medical benefits to employees in case of sickness, maternity, disability, or work-related injuries. The Employees' State Insurance Corporation (ESIC) is responsible for managing the scheme, which is funded through contributions from both employers and employees.

What is ESI Return Filing?

ESI return filing is the process through which employers submit necessary documents and details of their employees covered under the scheme to the ESIC. This ensures employees receive their entitled benefits, such as medical care, disability compensation, and maternity benefits.

Applicability of the ESI Scheme

Who Needs to Register?

Factories and establishments that have 10 or more employees (20 in some states) earning a monthly wage of up to Rs. 21,000 are required to register under ESI.
Employees with disabilities have an extended wage limit of Rs. 25,000.

Who is Covered?

All employees who earn Rs. 21,000 or less per month are eligible for ESI benefits.
The employer contributes 3.25% of the employee's wages, and the employee contributes 0.75% of its wage.

Benefits of ESI for Employees

1. Medical Benefits

All insured employees and their families get free access to medical care, consultation, hospital stays, and even operations costs under the ESI scheme. ESIC hospitals and clinics offer cashless care to employees, which reduces the financial burden.

2. Sickness Benefits

If an employee becomes unwell and is unable to work for up to 91 days in a year, they are entitled to 70% of their daily salary. For up to two years, extended sickness benefits cover 80% of wages in cases of chronic illnesses like cancer, heart disease, or tuberculosis.

3. Maternity Benefits

Female employees are 100% of their salary for 26 weeks of maternity leave, and prenatal and postnatal care, which guarantees that mother and child receive proper medical attention, are additional advantages.

4. Disablement Benefits

Temporary Disablement Benefit (TDB): Employees who suffer injuries at work receive 90% of their wages as compensation until they recover and resume work.
Permanent Disablement Benefit (PDB): In case of permanent disability, employees receive lifelong monthly compensation, calculated based on the severity of the disability.

5. Dependents' Benefit (Survivor's Pension)

If an ESIC-insured employee dies from an industrial disease or injury related to their job, dependents of the employee get a monthly compensation. The pension, which is split among the dependent parents, spouse, and children, guarantees the family's financial security.

6. Funeral Expenses

A lump sum amount of Rs. 15,000 is given to the family of the deceased insured employee to cover its funeral costs.

7. Unemployment Allowance (Rajiv Gandhi Shramik Kalyan Yojana)

Employees who lose their jobs due to factory closures, retrenchment, or permanent disability are eligible for an unemployment allowance of 50% of wages for up to 24 months.

8. Vocational Rehabilitation and Skill Training

In cases of disability, insured employees receive free vocational training to help them acquire new skills and reintegrate into the workforce.

9. Contributory Nature Ensuring Lifetime Benefits

Since ESI is self-financed through contributions, employees can continue enjoying lifetime benefits if they meet the required contribution conditions.

10. Coverage for Retired and Disabled Employees

For a small annual premium, employees can continue receiving medical treatment under ESI even after they retire or become disabled, guaranteeing lifetime healthcare security.

Documents Required for ESI Return Filing in India

To file an ESI return in India, Employers must gather several key documents:

Attendance register
Register for Form 6
Register of wages
Inspection book
Monthly challans
Register of any accidents on the premises
A list of workers with their monthly pay information
A list of directors, partners, and owners of the company
PAN card of the business and address proof of the establishment
Bank records of the organization, with evidence of the start of the operation

Checklist for ESI Return Filing

Employers can use the following procedures to find and fix mistakes in their ESI returns:

Cross-Check Employee Data: Always make sure that all employee information, including name, ESIC number, and pay, corresponds with official records before submitting.
Verify Contribution Calculations: To be sure the employer and employee contributions are correct, use the ESIC online contribution calculator available online.
Examine Past Challans: To find any discrepancy in filings and payments, compare the current return with previous challans.
Verify submitted papers: Make sure that all required papers, such as attendance records and wage registers, have been submitted accurately.
Stick to the Return Filing Deadlines: To make sure returns and payments are submitted on time, maintain a compliance calendar.
Track Payment Status: Verify that all the payments have been made correctly by visiting the ESIC site after making contributions.
Respond to ESIC Notices: If ESIC sends you a notice, read the notice carefully and make the necessary changes and modifications as soon as you receive an ESIC discrepancy notification.

Step-by-Step Guide to Filing ESI Returns Online in India

Employers must file ESI returns twice a year, ensuring accurate reporting of contributions and compliance with ESI regulations.

1. Log in to the ESIC Portal

Visit the official ESIC website at https://www.esic.gov.in/.
After login to the portal, click on the “File Return” section

2. Update Employee Details

Update all the details of employees, like their names, wages, and insurance numbers, are up to date.
Add the details of the new employees who have joined during the return period.
Remove details of employees who have left the organisation.

3. Upload Required Documents

Submit the following documents for verification:

Employment details
Attendance records of the employees
Wage registers of the employees
Challans of previous ESI contributions

4. Calculate Contributions

The calculation for ESI contribution is:

Employer Contribution: 25% of the employee’s gross wages.
Employee Contribution: 75% of the employee’s gross wages.

Cross-check totals to avoid discrepancies and penalties.

5. Generate Challan and Make Payment

Click on “Generate Challan” to create a payment slip.
Pay the contribution through net banking, NEFT, RTGS, or UPI.
Save a copy of the challan receipt as proof of payment.

6. Submit ESI Return

Once the contribution is paid, navigate to the return submission section.
Verify all details and submit the half-yearly ESI return online.
Download the acknowledgement receipt for records.

ESI Contribution Due Dates

1. Payment Due Date: 15^th of the upcoming month.

2. Return Filing Deadlines:

April to September: November 11
October to March: May 11

Penalties for Non-Compliance

Failure to file ESI returns not on time can result in penalties, such as:

Interest on Late Payment: 12% per annum interest will be imposed on outstanding contributions.
Penalties for Non-Filing: The fine can range from Rs. 5,000 to Rs. 25,000.

Common Mistakes in ESI Return Filing

Employers are mandated by law to file ESI returns. Employers frequently make the following errors when submitting ESI returns:

Inaccurate Employee Information: Employers sometimes add incorrect records of the information on employee names, salaries, or insurance numbers.
Failure to Update Employee Status: Contribution calculations may contain mistakes if new hires are not added to the records or if departing employees are not removed.
Contribution Miscalculations: Wage computation errors may lead to inaccurate contributions. Employers should confirm the amounts using the ESIC online calculator.
Late Payments: Employers are required to make timely contributions since late payments result in interest and penalties.
Omission of Necessary Documents: Failure to upload supporting documentation, such as wage registers and attendance records, may result in refusals or delays in processing returns.
Failure to Verify Challan Details: Incorrect amounts or details produced by employers can result in disparities in payment records.
Failure to miss the Deadline: Under the ESI Act, missing return filing deadlines may result in fines.
Not paying attention to ESIC Notices and Rectification Asks: If ESIC poses questions or requests corrections, a delay in responding may result in legal repercussions.

Why choose Kanakkupillai for ESI Return Filing?

Kanakkupillai is a trusted name in the industry that offers reliable services for ESI Return Filing and compliance with labour laws. When you choose Kanakkupillai for the ESI Return Filing, you benefit from the following:

Expert Advice: The Kanakkupillai team of experts guarantees an easy return filing procedure by calculating the contribution and guiding you at each and every step.
End-to-End Services: Kanakkupillai handles every stage of the return filing procedure, from registering your business at the ESI portal to filing the return.
Timely Completion: We guarantee that the ESI filing will be completed as soon as feasible, without any interruptions and unnecessary delays.
Reasonably priced: Kanakkupillai provides all services at affordable prices, with no hidden costs.
Client-Centric Approach: We guarantee that all of your questions are answered and provide personalised services depending on your company's needs.