ESI refers to Employee's State Insurance. It was established under the ESI Act, 1948. According to this act, employees should be provided with the benefits in the event of sickness, disablement, death, injury, etc. A business firm registered under this scheme has to file the return every month. Under this scheme, the employee and the employer both have to contribute a certain sum of money each month. Employee who has a monthly salary or wages of less than rupees 21000 is covered under this. Along with the employees, their family members are also benefitted under this scheme. According to this scheme, the employer must contribute 4.75% and employee must contribute 1.75%, which comes to a total of 6.5%.
ESI return is to be filed on 15th of every month.
Note: To file the return, there are two contribution periods are present. One starts from 1st April to 30th September every year and another one starts form 1st October to 31st march of every year.
Get useful latest news & other important update on your email.