Asktrix

Guide to ESI Return Filing

Employee State Insurance (ESI) is a social security scheme that provides medical and cash benefits to employees and their families. This comprehensive guide will help you understand ESI return filing requirements, processes, and compliance obligations for employers in India.

Governing Act and Rules

  • Employee State Insurance Act, 1948: The primary legislation governing ESI scheme and its implementation
  • Employee State Insurance (Central) Rules, 1950: Detailed rules and procedures for ESI compliance and return filing

Eligibility for ESI Registration and Filing

Employer Eligibility

  • Companies with 10 or more employees (in some states, threshold is 20 employees)
  • Employees earning up to ₹21,000 per month are covered under ESI scheme

Employee Eligibility

  • Employees with monthly wages up to ₹21,000 are eligible for ESI benefits
  • Both permanent and temporary employees are covered under the scheme

Contribution Rates for ESI

  • Employer Contribution: 3.25% of employee wages
  • Employee Contribution: 0.75% of employee wages
  • Total ESI Contribution: 4% of employee wages

Contributions must be deposited monthly, and quarterly returns must be filed with the ESIC (Employee State Insurance Corporation).

Step-by-Step Process for ESI Return Filing

Our streamlined process ensures quick and hassle-free ESI return filing:

1

Register on the ESIC Portal

Create an account on the ESIC portal (www.esic.nic.in) using your company registration details. Complete the employer registration process and obtain your ESIC registration number.

2

Maintain Accurate Payroll Records

Keep detailed records of employee wages, attendance, and other relevant information. Ensure all employee data is updated and accurate for ESI calculation purposes.

3

Deposit ESI Contributions

Calculate ESI contributions for each employee and deposit the total amount (employer + employee contributions) to the designated bank account before the due date.

4

Quarterly ESI Return Filing

File quarterly returns (Form 6) on the ESIC portal within the prescribed time limit. Include details of all employees, their wages, and contributions made during the quarter.

5

Generate ESI Return Acknowledgment

After successful filing, generate and save the acknowledgment receipt. This serves as proof of compliance and should be maintained for audit purposes.

Due Dates for ESI Filing

Period Filing Due Date
April - June July 15
July - September October 15
October - December January 15
January - March April 15

Benefits of Timely ESI Return Filing

  • Compliance with Legal Requirements: Avoid penalties and legal consequences by meeting filing deadlines
  • Employee Benefits: Ensure employees receive medical and cash benefits without interruption
  • Access to Claims and ESI Services: Maintain eligibility for ESI medical facilities and cash benefits

Penalties and Consequences for Non-Compliance

  • Interest on Late Payment: 12% per annum on delayed ESI contributions
  • Penalty for Late Filing: Additional charges for late submission of returns
  • Employer Liability: Legal action and prosecution for willful non-compliance

Example of ESI Calculation and Filing

Example: Ms. Priya - Monthly Wage: ₹18,000

Employer's Contribution (3.25%) ₹585
Employee's Contribution (0.75%) ₹135
Total ESI Contribution ₹720

Documents Required for ESI Return Filing

  • Challan Receipts: Proof of ESI contribution payments
  • Employee IP Numbers: Individual employee identification numbers
  • Monthly Payroll Records: Detailed wage and attendance records
  • Form 6 Register: Quarterly return form with employee details
  • Inspection Book: Record of ESIC inspections and compliance

Asktrix's ESI Filing Services

  • Hassle-Free Registration and Return Filing: Complete ESI registration and quarterly return filing services
  • Timely Reminders and Compliance Updates: Automated reminders for due dates and regulatory changes
  • Comprehensive Support for ESI Management: End-to-end ESI compliance management and expert guidance
FAQ

Frequently Asked Questions

Find answers to common questions about ESI return filing, eligibility, process, benefits, penalties, and compliance requirements.

What is ESI?

ESI (Employee State Insurance) is a social security scheme that provides medical and cash benefits to employees and their families. It covers medical expenses, sickness benefits, maternity benefits, and other social security benefits.

Who is eligible for ESI?

Employees earning up to ₹21,000 per month are eligible for ESI. Employers with 10 or more employees (20 in some states) must register for ESI and contribute to the scheme.

Who contributes to the ESI scheme?

Both employers and employees contribute to ESI. Employers contribute 3.25% of employee wages, while employees contribute 0.75% of their wages, making a total contribution of 4%.

When is the ESI contribution due?

ESI contributions must be deposited monthly, typically by the 15th of the following month. Quarterly returns must be filed within 15 days of the quarter end.

What is Form 6?

Form 6 is the quarterly return form that employers must file with ESIC. It contains details of all employees, their wages, contributions made, and other relevant information for the quarter.

What happens if ESI returns are filed late?

Late filing of ESI returns attracts penalties and interest charges. Employers may face legal action and prosecution for willful non-compliance with ESI regulations.

Can proprietorships apply for ESI?

Yes, proprietorship firms with 10 or more employees (20 in some states) must register for ESI and comply with all ESI requirements, including return filing and contribution payments.

How can Asktrix help with ESI compliance?

Asktrix provides comprehensive ESI compliance services including registration, monthly contribution calculations, quarterly return filing, and ongoing compliance management with expert guidance and timely reminders.

What is the penalty for late ESI deposit?

Late ESI deposits attract interest at 12% per annum. Additionally, there may be penalties for late filing of returns and other compliance violations.

Is ESI compulsory for all employers?

ESI is compulsory for employers with 10 or more employees (20 in some states) in establishments covered under the ESI Act. The threshold varies by state and type of establishment.

ESI return filing is essential for maintaining compliance and ensuring employee welfare. Asktrix provides expert guidance and comprehensive support to help you navigate ESI requirements efficiently and avoid penalties while ensuring your employees receive the benefits they deserve.

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