What is ESI Return?
Employees' State Insurance (ESI) is self-financing social security and health insurance scheme for the Indian Workers, which is an autonomous corporation governed by Ministry of Labour and Employment. This Fund of ESI is managed by Employee State Insurance Corporation (ESIC) and its rules regulations. All entities registered under ESI registration must file ESI returns which is due half yearly.
Applicability of ESI
The ESIC is applicable on all the establishments having 10 or more workers and is beneficial to all the employees earning Rs.15, 000/- or less per month as wages, employer must contribute 4.75 percent and employee must contributes 1.75 percent towards ESI.
Benefits of ESIC
THE Employees registered under ESIC are entitled to medical treatment for themselves and their dependents, unemployment cash benefits and maternity leaves for women employees.
One of the main objectives of taking this form of registration is medical benefits to employees and workman. If any sickness or other contingency is experienced by workforce, then the same can be availed immediately by an affected worker.
The ESI registration scheme was brought out as a social security provided by the government. Through this scheme, social security features such as maternity benefits, sickness allowance and other related benefits are provided.
Benefits under this system can be availed easily at any hospital or health care centre. All payments which are used under this system can be compensated.
Benefits related to Sickness
Through the ESIC registration, all employees would be offered different form of sickness benefits. These benefits are offered at a rate of 70% of the salary of the employer. This amount would be considered and provided if the sickness extends over three consecutive months or 90 days.
Every organisation taking up this scheme would have to provide maternity benefits such as maternity leave during pregnancy.
Disability Benefits are also covered as a part of this scheme. In an unforeseen event in a permanent disability or the death of the employee, this can be claimed by the dependants of the employee.
How to file ESIC return?
Following points need to be considered for ESI Return:
- Log in Employer Portal using 17 digit Employer digit code. This code is provided to the company when registering under the ESI rules. When the 17 digit registration number is received by the company, the ESI filing process can be easily carried out.
- Go to monthly contribution section. Before considering this, the employer or factory must make sure that all the information related to the employees are updated before filing the returns.
- All the details of the employer contribution will be displayed.
- Verify the details. After this enter bank details and go to submit the monthly employee return.
- If there are any short payments in respect of employees then complete the dues.
- Do Self Certification under monthly contribution section, then check mark the declaration and submit the return.
Documents Required to File ESI return
The following documents are required to file ESI return
- Registration Certificate or the respective license which is obtained under the Shops and Establishments Act.
- If this is a company registered under the provisions of the Companies Act, 2013 then the certificate of incorporation must be provided
- The Memorandum of Association and Articles of Association also must be provided along with the other documents
- If the entity is a partnership company, then the copy of the respective trust deed must be provided.
- If the entity is a factory, then the certificate of commencement of work in the factory must be provided.
- Information on the employees of the establishment or the factory
- Information on the monthly contribution of the employees of the factory or the entity
- A detailed list of all the directors, shareholders and partners of the company
- Permanent Account Number (PAN) of the Establishment or the Entity
- Respective Bank Statement of the Organisation
- Register of Form- 6
- Wages Registry
- Address of the premises and other information related to the premises
- Inspection Book and Certificates
- Attendance registers of the Company