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ESI Return

ESI Return

BASIC PACKAGE

INR 799 /- Exclusive of GST, No hidden Charges

ESI return filing for employers having less than 30 employees

STANDARD PACKAGE

INR 1,499 /- Exclusive of GST, No hidden Charges

ESI return filing for employers having less than 50 employees

PREMIUM PACKAGE

INR 4,899 /- Exclusive of GST, No hidden Charges

ESI return filing for employers having less than 80 employees

ESI Return filing package includes:

  • Preparation of salary sheet
  • Computation of ESI Contribution (Employers contribution and Employees contribution payable)
  • Assistance in making ESI payment
  • Addition or deletion employees in employees salary sheet

 

799.004,899.00

RECENT AMENDMENT EFFECTIVE FROM 1ST OCTOBER 2019

Employees must be registered online on the date of appointment, the online system shall allow maximum 10 days to register the new employee.

Contribution against employee must be deposited within the due date. You shall not be able to deposit contribution online after 42days from the end date of the contribution period.

Revised exemption of contribution for average daily wages of Rs. 176 or less has been made effective from 1st September 2019.

Employees State Insurance or ESI Return is required to be file on or before 15th of following month.For example due date of filing April month ESI return is 15th of May. Employee’s State Insurance (ESI) is a self-financing social security and health insurance scheme for Indian workers. …

For all employees earning Rs. 21,000 or less per month as wages, the employer must contribute 3.25% and employee must contribute .75% towards ESI.

Accordingly, the new rates of ESI Contribution, as notified by the Govt., are as under:

ESI Contribution  Existing Rate (%) Revised Rate (%)
Employer’s Share 4.75 3.25
Employee Share 1.75 0.75
Total ESI Contribution 6.50 4.00

Documents Required

Existing Employees

  • Employees Attendance register
  • Wages Register
  • Inspection Book, if any
  • Accident detail

New Employees

  • New employees joined during the month
  • Employees left during the month
  • Aadhaar Card
  • Mobile Number
  • Family Member Detail

Benefits

Medical Benefits

Complete Medical care benefit to insured person and their family members from the date of insurance. There is no ceiling on expenditure to be incurred on treatment and nature of disease.

Sickness and Disabled

Sickness Compensation to insured employees at rate of 70% of wages for certified sickness period upto 90 days and for disability compensation rate is 90% of wages.

Maternity Benefit

Maternity benefit of pregnancy is payable at rate of 100% of wages for period of 26 weeks and this period can be further extended up to one month on medical advice.

Other Benefits

Funeral Expenses up to Rs. 15000 to dependent and other benefits includes vocational rehabilitation, physical rehabilitation, old age care, Rajiv Gandhi Shramik Kalyan Yojana, Atal Beemit Vyakti Kalyan Yojana etc.

ESI Update

Due date Extension

Feb and March 2020, return filing and payment of contribution has been extended up to April and May 2020 respectively.

Funeral Expense

By amending rule 59 of ESI (Central) rule 1950, ESI has increased funeral expense from 10000 to 15000/- from 25th March 2019.

Dependent Parent Income

By amending rule 61A of ESI Rules 1950, ESI enhance income of dependent parent from 5000 to 9000 PM and applicable from 2nd Dec 2019.

Revision in ESI Contribution

ESI has revised rate of ESI Contribution wef from 13th June 2019. Revised employers contribution is 3.25% and employees contribution is .75% (total ESI is 4%)

Procedure

The ESI returns are filed half-yearly and can be done through their online portal.

To file, ESI returns online, you need to:

  • Collect the user id and password from the ESIC office. The login credentials are essential for filing returns through the portal.
  • Once you have collected the login id and password, click on the link to the official portal: http://www.esic.nic.in/
  • Press ‘Click here to Login’ on the right-hand side of the home page.
  • Enter your user name and password, provided to you by the ESIC. Click ‘Login’ to enter.
  • Once you enter the portal, you will have a list of actions that can be taken, or changes or additions made to your ESI account. For instance, you can change or update employee details, report an accident, and so on.
  • For filing monthly returns, click ‘FILE MONTHLY RETURNS’ on the right side tab. Before filing your monthly contributions, however, ensure that your employee details are current and updated. If not, you can edit details, before filing your contributions.
  • Enter the bank details, and click ‘submit’ to file your monthly ESI contribution.
  • After you have paid the contributions, you can go back to the ‘List of actions’ page, and click ‘Generate Challan’ on the right-hand tab.
  • A Challan, for the payment received, will be generated. The challan is an essential document that needs to be ‘filed’ and safeguarded for inspection.
  • Other than the filing of ESI returns, one can do several activities on the ‘List of Actions’ page. For instance, you can update an employee detail, add new employees, and so on. Check the website and carry out the necessary actions, before filing your ESI contributions for the month.
  • The ‘Employee annual information returns’ on the left side tab will give all the details about the ESI contributions and returns filed by your company.
  • If your company has more than ten employees who earn less than Rs. fifteen thousand monthly, then you must start paying for their ESI after getting your company enrolled for the same. You will have to deduct some portion of their salary towards this but a significant part of the entire ESI deposits must be contributed by your company. It is a beneficial scheme for employees because of the various medical security schemes associated with ESI.

FAQs

What is ESI Scheme?

  • ESI is a comprehensive Social Security Scheme designed to provide social protection to the employees against sickness, disablement and death due to employment injury and other events. The fund is self financing where employer and employee contribute on monthly basis and the amount can be utilised towards reimbursing expenses incurred on health of employee and his family members.

Is it Mandatory for the employer to register under ESI Scheme?

  • It is the Statutory responsibility of the employer to register the Factory or Establishment under the ESI Scheme within 15 days from the day of its applicability.

How can employees get registered under the Scheme?

  • When an employee joins insurable employment, he has to fill in a Declaration Form (form1) and submit a family photo in duplicate to the employer.
  • The employer then submits the documents to the ESI Branch Office.
  • The employee is then allotted an insurance number, the same number is then used for the purpose of his identification under the scheme. He is further issued a temporary identity card for availing medical benefit for self and family for a period of three months.
  • Thereafter, he is provided with a permanent photo identity card. A person once registered need not register again in case of change of employment. The same registration can be transferred from one place to the other.

How does the ESI scheme help employer?

There are a couple of benefits that employer gets on getting Employee State Insurance Registration for his business. The employer gets his employee protected by ESIC in all respects, so the employee can concentrate on his work.

  • The employer is relieved from providing any medical care to the employee and his family.
  • Employer is relieved from payment of Maternity Benefits.
  • Employer is relieved from payment of any compensation under the Workmen’s Compensation Act.

Who must register with Employees State Insurance Corporation?

  • Any entity, be it a government office, public sector or private sector entity which has 10 or more employees needs to get registered under the Scheme. The application must be filed within 15 days of reaching the employee count of 10.
  • Where the employer wishes to provide the benefits to his/her employees, he may voluntarily apply for registration.

What are the compliance requirements?

  • Every employer who is covered under this act is required to comply with various compliances like the deposit of monthly contribution, to file the half-yearly return and report to the ESIC authorities if there are any changes in the business activity, the address, ownership and the management, the maintenance of registers and records etc.

Are the benefits grants to the insured employees are transferable?

  • No, the right to receive any benefits under this act is not transferable.

Is it possible for an establishment or factory which was once covered go out of coverage if the number of persons employed by them falls below the minimum limit prescribed?

  • Once a factory or an Establishment gets covered under the Act, it will continue to be covered although the number of covered employees that were employed at any time falls below the required limit or there is any change in the manufacturing activity.

Is the over-time done by the employee to be included for the wage ceiling limit for coverage?

  • No, the overtime done by the employee is not included for calculating the wage ceiling limit for coverage. But, it is included for the payment of the contribution to cover the risk during the period of overtime work and to enable receiving the cash benefits at an enhanced rate also.

What is the time limit for the payment of contribution?

  • The contribution will be paid for the employees into a bank duly authorised by the Corporation within 21 days of the last day of the month in which the contribution is due for any wage period.

What is the mode of payment of the contributions?

  • The employer is required to file a monthly contribution online through the ESIC portal in respect of all its employees after getting them registered. The amount of contributions that are to be paid are calculated by keeping a record of, the employee wise number of days for which the wages are paid & the amount of wages that were paid respectively to calculate the amount of payable contributions. The total amount of contribution (which includes the shares of the employees and employers) in respect of all the employees for each month must be deposited in any branch of the SBI in cash or by a cheque or a demand draft on generation of such a challan through the ESIC portals. The contributions can be paid online through SBI internet banking too.

Is there any interest on the delayed payment?

  • An employer who does not contribute within the time limit shall be liable to pay simple interest at the rate of 12% per annum for each day of the default or delay in payment of contribution.

What are the records that are to be maintained for the ESI scheme?

In addition to the Muster roll, the wage record and the books of Account that are maintained under other laws, the employer is required to maintain the following records for the ESI:-

  • The accident Register in Form-11
  • An inspection book.
  • Immediate employer is also required to maintain the Employee’s Register for the
  • Employees deployed to the principal employer.

What is the registration of an employee?

  • The registration is a process of recording the information about the entry of an employee into insured employment, under the Act.

Why is the registration of an employee necessary?

  • The registration of the employees is needed to identify the employee and to provide them with the benefits under the Act which are related to the contributions paid by the employer on behalf of each of the insured employees.

What is an identity card?

  • After registration under the scheme, the employer can give a temporary identity certificate, affix employee’s photo and then authenticate it for use which will be valid for 3 months. This identity card acts as an identification for both claiming the medical benefit at dispensary/ hospital and for claiming the cash benefits at the ESI Branch Office.

What is the scale of the Medical Benefit?

  • The scale of the medical benefit includes the complete medical treatment from start to finish.

Do the disablement or the dependant benefits have a minimum period of work requirement?

  • No, there are no qualifying conditions or contributory conditions that are attached for claiming the disablement or Dependants benefit. Even if an employee meets with an employment-related injury on the first day or on any other day before he completes his first contribution period, the benefit can be claimed.

What are the benefits admissible to dependents?

  • The dependents are entitled to full medical care as and when needed, to artificial limbs, artificial appliances etc. as a part of the medical treatment.
  • The medical benefits are also admissible to dependents during the period the employee is claiming an unemployment allowance. In case of his death during this period, his family will continue to receive the medical benefit until the completion of those twelve months. The reimbursement of the expenditure incurred on the funeral of the deceased employee.
  • In case of death of an insured employee due to an employment injury, the widow, widowed mother and children are entitled to the Dependants’ benefit. All benefits due to the insured employee at the time of death are paid to the nominee.

Who are the individuals to be counted for the coverage of an establishment?

  • As long as the establishment employs a minimum prescribed number of individual it will continue to be covered under the Act even if these employees are employed at one place or any other place separate from each other, as they are engaged in the organised activity of the same establishment. Hence, all the individual including those working in branches registered office, and the sales office etc. notwithstanding the location are to be counted.

Who is a principal employer?

The principal employer is:
In the case of factory:

  • An owner
  • The occupier
  • The managing agent of the owner or the occupier
  • The legal representatives on the behalf of a deceased owner or an occupier
  • The manager of a factory.
  • In the case of the Establishments belonging to or under the control of the Government of India
    B. The Authority Specified
    C. Head of the Department (In absence of a specified authority).
    In case of other the establishments: The person responsible for the supervision and the control of the establishment.

Who is an Immediate employer?

An Immediate Employer can be any or all of those given below: –

  • The one who executes any kind of work inside the premises of the principal employer of a factory or an establishment.
  • The one who executes the work in a factory or an establishment outside the premises which is supervised by the principal employer or his agent.
  • And also the one who gives on hire the services of his own employees to the principal employer of a factory or an establishment.
  • A Contractor

Who are the individuals to be covered as “Employees”?

Any individual employed for the wages in or in connection with a factory or establishment, and:
A. Directly employed by the Principal employer, in an establishment or a Factory within the premises or elsewhere, or in any other part, department or the branch of the factory or establishment.
B. Employees of the immediate employer:

  • Being employed in the premises on any work of the factory or an establishment
  • Being employed outside the premises on work in a factory or an establishment outside the premises being supervised by the principal employer or his agent.
  • The employees lent or let on hire to the principal employer on any work of the factory
  • The paid directors of a company.

The following are excluded:

  • An Apprentice
  • An employee who receives the wages above the ceiling limit for the coverage prescribed by the Central Government.
  • The ember of the Indian Armed Forces

What are periods of contribution and benefit?

  • The financial year from April to March is been divided into two six-monthly contribution periods i.e. 1st April to 30th September and 1st October to 31st March of the next year. The relevant period of benefit corresponding to each period of the contribution commences three months after end of that contribution period i.e. Jan to June and July to December (The calendar year has been divided into a two six-monthly benefits periods).

What is ‘Sickness Benefit’?

  • The scale of medical benefit includes complete medical treatment from start to finish. If an employee requires the medical treatment and is absent from work for medical reasons, the Sickness benefit is paid for the period of absence after it is confirmed by the Authorised Medical Officer, this is for a period not more than 91 days in two consecutive benefit periods (one year) at 70% of the standard benefit rate, subject to the payment of the contribution for not less than 78 days in the corresponding contribution periods.

What is Disablement?

  • Disablement is a condition resulting from an employment injury, which may render the employee briefly incapable of doing his work and it necessitates medical treatment (temporary disablement). This may reduce his earning capacity (permanent partial disability) or it may completely deny the employee of his ability to do any formwork (permanent total disability).

What is an ‘Employment-related Injury’?

  • This is a personal injury to an employee which is caused by an accident or an occupational disease arising out of and/or in the course of his employment within or outside India.

When do the Dependants receive Benefits?

  • The dependants’ benefit is a monthly pension that is paid to the dependents of an employee who dies as a result of an employment-related injury or an occupational disease.

What are the maternity benefit?

  • The maternity benefit is the cyclical payments given to an insured female employee for the specified period of absence from work, due to confinement, miscarriage or the sickness out of pregnancy, premature birth of child. The amount of maternity benefit is equal to the standard benefit rate.

What are the funeral expenses? Who is to be paid?

  • A lump sum amount not exceeding Rs.10000/- is appropriated towards the expenditure on the funeral of a deceased employee, it is paid either to the eldest surviving member of the family or if the deceased employee was without family or not living with his family at the time of the death, then the amount is paid to the person who actually performs the funeral of the deceased employee.

What is the Standard Benefit Rate?

  • The Mean average daily wages which is calculated by dividing the total wages paid during the contribution period by the number of days for which these wages were paid.

What are the advantages of ESI Registration?

The advantages of an ESI registration are as follows:

  • ESI offers complete medical benefits
  • It includes the dependants
  • It can be used at other ESI dispensaries and hospitals
  • All payments made are reimbursed
  • It takes into account the requirements of the disabled
  • It gives access to Medical care in ESI Dispensaries/Hospitals
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