ESI means ‘Employees State Insurance’. It is Social Security to the all-employee of an organization. ESI Registration offers monetary and medical benefits to Employees in a case of sickness, maternity, and employment injury and to make provisions for related matters. The Employees’ State Insurance Act, 1948 provides an integrated need based social insurance scheme. The Act also guarantees reasonably good medical care to workers and their immediate dependants.
Coverage of employees
ESI Registration is mandatory for companies/Firm who has at least 10 employees with wages less than 21000/- per month
Rate of Contribution of the wages
Employer need to contribute 4.75 % of the salary of the employee and employee’s contribution is 1.75% of the salary of employee. Thus, Total Contribution ( of employer and employee) is 6% which is to be deposited for ESI
Registration of employers under ESI Act is fully online, without requirement of submission of any physical application documents
On successful submission of the information; the code number is generated automatically and displayed to the employer.
Once the code number is generated and C-11 is sent to the email address of the employer,
The employer can log on to the website of the ESIC ( www.esic.in) and can perform all the online activities.
Manner and Time Limit for making Payment of contribution
The total amount of contribution i.e. employee’s share and employer’s share is to be deposited with the authorized bank through a challan in the prescribed form in on or before 21st of the month following the calendar month in which the wages fall due.
The user can manually type the contribution against each employee or can upload an excel file as an attachment for bulk upload. This is quite user-friendly for bulk data.
After submission user can make the online payment via SBI net banking by clicking on Pay online.
ESI returns is required to file half yearly. i.e. for the period of April to September by 12thNovember and for the period from October to March by 12th May.
Every ESI registered Companies have to file their return half-yearly and annually returns. They have to mention all the changes made during the year