ESIC Return and other Annual Compliance

Narendra Kumar

11 Jun, 2019

What are ESIC Return and other Annual Compliances?

ESIC Return Employee State Insurance (ESI) is a self-financing social security and health insurance scheme for Indian workers. ESI Registration is mandatory for a business entity having 10 or more employees. The employees whose gross earnings are less than Rs.15000 per month than the entity needs to contribute 4.75% and the employee needs to contribute 1.75% towards ESI contribution. It is a corporation which is running under Ministry of Labor and Employment.

What are the benefits of ESIC?

The employees who are registered under ESIC can avail various medical and sickness benefits under the scheme.

• Sickness benefits at the rate of 70% of wages are payable to employees registered under ESIC scheme.
• Medical benefits are available to the employee and his family members
• Maternity benefits to the women who are pregnant
• If the death of an employee is caused during work than 90% of the salary is given to his dependents every month after his death
• If during work any person has met with an accident and it caused permanent disability than the employee will get 90% of the salary in form of monthly payments.
• Various other expenses such as funeral expenses, retirement benefits, old age care expenses, Dependents benefits are available under ESIC

What is the ESI Registration Procedure?

The following documents are required for registering under the ESI scheme:

• Shop and Establishment Act registration certificate
• Certificate of Incorporation in case of Put Ltd Company and Partnership Deed in case of Partnership Firm
• Memorandum and Articles of Association of company
• List of employees working in the company
• A list of directors, partners, and shareholders of the company;
• The PAN card of the firm/company
• Registered address proof of the establishment/firm/company
• Bank statements or canceled cheque of the establishment.

Once the application is filed with the department with all the required documents. The registration can be done online. The officer after verifying the form and details will issue a 17 digit unique number to the company along with the registration certificate.

ESI Returns

Every company/establishment registered under ESIC has to file half yearly returns and also annual returns. All the changes made to the employees during the year must be intimated to the department at the time of filing the ESIC annul return. The monthly Chillan copy must be submitted at the time of filing returns and all the particulars regarding the contribution made must be mentioned in the employee’s register. The establishment must maintain a register of wages, attendance register, inspection book, etc. The amount of contribution made by the employer and the employee must be deposited with the department within the prescribed time. The employees can also check the amount of ESIC return contribution online in employee’s passbook.