What is ESI registration?

ESI registration entails signing up for a social security and health insurance cover for workers in India. This cover is administered by the Employees' State Insurance Corporation and is a statutory requirement under the Employees' State Insurance Act of 1948. With ESI registration, workers are entitled to cash and medical benefits if they fall sick, go on maternity leave, become disabled, or even die as a result of a work-related injury. This cover is extended to factories and businesses that employ ten or more workers.

What is ESI Return?

The ESI Return is an important part of the Employees' State Insurance (ESI) Scheme. This is run by the Employee State Insurance Corporation (ESIC), which is overseen by the Ministry of Labour and Employment. In short, it is an insurance that provides workers with a safety net in case of sickness, disability, or other health-related problems.

Here is what you need to know about ESI Returns:

You need to file ESI Returns twice a year. These match the two halves of the financial year. If you have ESI registration for your organization, then filing these returns on time is not an option, it is a necessity if you want to avoid any problems with the ESIC.

Advantages of ESI Return Filing

1. Medical Advantages:

The objective behind filling out this form and getting registered is to give employees medical advantages. The employees suffering from a disease or illness can benefit from this scheme.

2. Social Security:

The government has introduced the ESIC registration program, and this is a type of social security program. The benefits that are provided are related to social security, and there is insurance for maternity, disability, etc.

3. Simple Processing:

The benefits that are provided under this scheme are easily available at any hospital or health care facility. Any amount that is paid under this scheme is compensated.

4. Advantages associated with sickness:

Every employee will receive a different type of sickness advantage under the ESIC registration program. The benefits are provided at a level that is 70% of the amount that is paid by the company. If the sickness is for more than 90 days or three months, we will take this into account and provide the amount.

5. Advantages associated with Maternity:

Every company that is a part of this program has to provide advantages to the women related to maternity, such as maternity leave.

Types of ESI Return Filing

2. Half-Yearly ESI Return

This is a principal return that every registered employer must file. Let’s see how it is divided:

April to September - File by November 11

October to March - File by May 11

What to include:

Employees

Wages paid

ESI contributions

Total working days

2. Monthly Contribution Filing (ECR / Contribution)

This is not a return, but still has to be uploaded on the ESIC Portal.

What to include:

Wages paid to each employee

How you calculated it

Generation of payment challan

When to file: Every month on the 15th. 

ESI Return Filing Procedure Step by Step

Step 1 Log in to the ESIC Portal

First of all, go to the ESIC website. You will see the option “Employer Login.” Now, enter your User ID, password, and the captcha code provided in the screen.

Step 2 Register Employees

Before filing the return, it is important to register all the employees working in the organization. To do that, go to the “Employee” section of the ESIC portal and select “Register New Employee.” Now, enter the name of the employee, father’s name, date of birth, address, salary/wages, etc., of the employee. As soon as you do that, the system will generate the Insurance Number for the employee.

Step 3 Upload Monthly Contribution

Next, go to the “Monthly Contribution” section of the portal and select “Upload Contribution.” Now, enter the IP number of the employees, the number of days worked by the employees, the salary/wages paid to the employees, etc.

Step 4 Generate Contribution Challan

Once the salary/wages of the employees have been entered in the system, the system will automatically calculate the contribution to be paid by the organization. Now, select “Generate Challan.” The rate of contribution is 0.75% for the employees and 3.25% for the employers.

Step 5 Make Payment

Make payment through net banking or credit/debit cards. The only thing to remember here is to make sure you make the payment before the 15th of the next month.

Step 6 Verify Contribution History

Once you have made payment, you can verify your payment through the Contribution History section.

Step 7 File Half-Yearly Return

Finally, you need to file your return for the correct period. If you have made payment for April to September, then you need to file your return by 11th November. If you have made payment between October and March, then you need to file your return by 11th May. The ESIC portal will take care of filling in the return for you. 

Required Documents

1.     Registration Certificate/License: The organization is required to present their Registration Certificate/License in accordance with the Shops and Establishments Act.

2.     Certificate of Incorporation: This certificate is mandatory for organizations registered under the Companies Act 2013.

3.     Memorandum and Articles of Association: Companies are required to present their constitution and how their business is being run.

4.     Trust Deed: Partnership firms are required to present a copy of their trust deed.

5.     Factory Work Commencement Certificate: Factories are required to present their certificate to prove that their business is operational.

6.     Employee Details: All details of employees in terms of their ESI.

7.     Details of Director/Shareholder/Partner: A list of details showing the directors, shareholders, and partners in the organization.

8.     PAN of Organization: Permanent Account Number is an important document for an organization.

9.     Bank Statement: Organization's bank statement to prove transactions.

10.  Property Address and Details: Details of where the organization is located.

11.  Certifications and Inspection Records: Certifications and an inspection book maintained for business.

12.  Organization's Attendance Records: Attendance records of all employees working in the organization.

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