ESI Return Filing

Overview

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%.

Advantages

• Medical aid: The persons registered under ESI are provided with the medical aids along with their family members, starting from the day a person becomes the employee of the firm.
• Maternity benefit: Maternity benefits for pregnancy is provided under this act to the female employees of the firm. This is provided for a time period of 26 weeks. It is extendable up to a period of 1 months (4 weeks) on the medical advice.
• Disablement help: If the employee unfortunately comes in contact with any kind of injury due to which he/ she is not able to work then, the employer has to pay him/ her 90% of the salary as the disablement benefit.
• Sickness benefits: During sickness of any employee, employer has to pay him/ her 70% of his/ her regular salary as sickness benefit. This could only exceed up to a period of 91 days in year.
• Death benefit: 90% of the regular salary is paid by the employer in the case of death of the employee.
• Old age medical care: This benefit is accessed by the person or employee who is retiring on attaining the age of superannuation. It is also accessed by the person having to leaving the job due to permanent disability.
• Funeral expenses: A sum amount of rupees 10,000 is paid to the employee or the person who perform all the last rites of the deceased person by the organization or employer. In some cases, this amount is paid to the dependents dependent upon the employee.

Documents required for ESI registration

• Address proof or PAN card of the firm or organization.
• Canceled cheque.
• All the directors' / partner's / proprietor's PAN, address proof and ID proof.
• Partnership deed and incorporation deed
• Address proof of the company ( telephone bill or bank statement )
• Any other registration copy ( GST, service tax, shop and establishment TIN, etc.)
• Nature of work
• All directors' DIN
• DSC of the Authorized signatory and name, mobile number, mail ID.

Contribution of ESI employers and employees

• Employees contribute 1.75% of the gross pay.
• Employers contribute 4.75% of the gross pay to the employee.

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.