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ESI Registration & return filing process – Benefits, Documents Required

ESI-Registration-and-return-filing-process

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ESI stands for Employee State Insurance; it is one of the demanded social security schemes and health insurance plan in India. This scheme is managed by the Employee State Insurance Corporation and it is an autonomous body brought into force by the Central Government of India. ESIC manages the fund according to the rules and regulations stated by the Act.

It is compulsory for almost all private limited companies to get registered under the ESI Act of 1948 and if the company fail to register in due course of time then it is liable to face penalty actions issued by the government. This self-financing social security scheme specially created for Indian workers to offer medical and disablement benefits.

ESI registration is mandatory for a company that holds 10 or more employees. As per the ESI Act, each and every employee earning less than Rs. 21,000 per month should contribute about 1.75% of his/her salary towards the ESI, and about 4.75% of the amount will be contributed by the company towards his/her ESI. The ESI scheme is very beneficial for workers as it provides tremendous welfare to the employees. A large network of hospitals and dispensaries around the country are connected with this scheme to facilitate fast and efficient medical care to the employees and their families.

Check out the benefits of ESIC registration

The benefits of ESI registering are varied. Some of them are listed below:

  • In the case of any certified illness of the registered person that lasts for a maximum of 91 days in any year, the sickness benefits at the rate of 70% of salary is payable.
  • Complete medical care is offered to the insured employee and his family members
  • Maternity benefit to the women – working women who are registered under ESI is eligible for paid leaves for about Twenty-Six (26) weeks and it can be extended further one month on the medical requirement or medical advice.
  • In case, the employee’s death happens while on duty then 90% of his salary is handed to his dependents every month.
  • Same as above will be followed in case of physical or mental disability of the insured employee
  • Funeral expenses of Rs.15,000/- is issued to the dependents or to the individual who does last rites to the insured person and it is applicable from day one of ESI registration of the employee.
  • Medical expenses for the insured employee and their spouse at their old age.

The following documents are needed for ESI Registration:

  • A registration certificate received either under the:
  1. Shops and Establishment Act
  2. Factories Act
  • Partnership deed in case of a Partnership and Registration certificate in case of Company,
  • Memorandum of Association and Articles of Association of the Company
  • The list of all the employees working in the organization
  • PAN Card of the organization along with a copy of pan card of all the Employees working under the company
  • The details of Compensation of all the employees
  • A canceled cheque from the Bank Account of the Company
  • List of Directors and the Shareholders of the Entity
  • Register with the details of the attendance of the employees of the entity

After compiling all the above-mentioned documents, the mentioned below procedure has to be followed to complete the registration process under ESI scheme:

  1. Form No – 1 Employers Registration Form has to be downloaded.
  2. Once downloading the form which will be in the PDF version and fill all the details, and submit it on the website along with all required documents.

Below mentioned is the stepwise procedure of ESI Registration 

  • After collecting all the required documents, the company can apply for ESI registration by presenting the Employer’s Registration Form (Form-1).
  • A PDF format of the ESI Registration form is available online. Enter the form with correct details and submit it on the official website to get registration under ESIC.
  • After all verification process, a 17-digit unique registration number will be provided to the business entity. 
  • Once you receive the 17-digit unique registration number, immediately ESI filings can be done.
  • Employees registered under the ESI scheme will receive an ESI card after submitting the required form along with photographs and complete information of the family members.
  • The ESI registration process is one-time process or it is permanent, and the number is valid for the lifetime of the entity, if anything you want to change, such as new employee addition or so on, you need to be approach the ESI.

ESI Return Filing Process

Companies running under ESIC’s registration have to file their returns every year. During this process, they have to submit all the changes done or happened in the preceding year. The entity also has to present the details of ESI contribution paid and it has to be done in every six months. The last date of submission of ESI return is 11th of November for the period of April to September and 11th of May from October to March. 

Here is the list of needed Documents for filing ESI returns.

  • Attendance register
  • Register of wages
  • Register for Form 6
  • Monthly challans and returns submitted for ESI
  • Register of any accidents on the premises
  • Inspection book

ESI Returns can be filed two times every year after the registration. An employer can fill the ESI return through the official website of ESIC. Every employer has their own 17 digits permanent code number which is issued by ESIC at the time of registration. To enter into the ESIC official website, this unique number is used as a user id and password as issued to you. 

  • Once entering the website, choose the monthly contribution section and surf to view RC and click it.
  • Here you can find the complete details of the contribution paid by the employer and the details of the wages of the employees.
  • Verify the complete details carefully. If there is any short payment of contribution for any employees, then generate supplementary challans using the option ‘modify challan option’ under the section of monthly contribution.
  • You can create miscellaneous challan If there are any payments to be made on omitted wages which is not related to identified workers.
  • Then click Self Certification which is under the monthly contribution section and check mark the declaration and click the submit button. You have to upload chartered Accountant certificate before submitting, in case you have 40 or more employees.

By following the above-mentioned steps, the employer can file the return of contribution.

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