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TAXAJ Corporate Services LLP - Financial Doctors

ESI Compliance - ESI Return Filing

The employees’ state insurance or the E.S.I. is one of the most popular social security schemes that enhance healthcare facilities. The Central Government brought into force to make healthcare & medical facility affordable for the labours and all other working-class people. All private limited organizations should register under the E.S.I. Act of 1948 provides a sense of belonging in the people working for the organization. If they fail, then they may face penal actions in due course of time. So, abiding by the provisions of the E.S.I. Act will be best in your interest. E.S.I is a health insurance plan for Indian workers, offering medical and disability benefits. It is governed by the E.S.I. Act, 1948, & is a self-financing scheme managed by (ESIC) under the Ministry of Labour and Employment.
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About This Plan

File monthly PF and ESI returns online through TAXAJ platform.
Created by potrace 1.15, written by Peter Selinger 2001-2017


It usually takes 2 to 3 working days.

Services Covered
Who Should Buy
How It's Done
Documents Required
Services Covered

  • Registration on EPFO/ESI
  • Preparation of Salary/Wages Register
  • Bulk PAN Verification
  • Challan Verification
  • Online Challan Generation and Submission
  • Filing of EPF & ESI Return
Who Should Buy
Businesses liable to file EPF & ESI Compliances
How It's Done

    • Purchase of plan
    • FIll in the details in the template provided
    • Upload documents on vault
    • Return form prepared by Tax Expert
    • Filed by Our Experts
Documents Required
  • Salary Details of Employees/Labours
  • Details of Employer
  • Details of responsible person
  • Challan details

ESI Compliance explained here in this informative video!

Knowledge Base

1. What is the procedure for the registration of an employer?
An employer can apply for FORM 01 within 15 days after the Act becomes applicable to an establishment or a unit

3. What are the compliance requirements?
Every employer who is covered under this act is required to comply with various compliance like the deposit of monthly contribution, to file the half-yearly return and report to the ESIC authorities if there are any changes in the business activity, the address, ownership and the management, the maintenance of registers and records etc.

4. Are the benefits grants to the insured employees are transferable?
No, the right to receive any benefits under this act is not transferable.

7. Is it possible for an establishment or factory which was once covered go out of coverage if the number of persons employed by them falls below the minimum limit prescribed?
Once a factory or an Establishment gets covered under the Act, it will continue to be covered although the number of covered employees that were employed at any time falls below the required limit or there is any change in the manufacturing activity.

9. Is the over-time done by the employee to be included for the wage ceiling limit for coverage?
No, the overtime done by the employee is not included for calculating the wage ceiling limit for coverage. But, it is included for the payment of the contribution to cover the risk during the period of overtime work and to enable receiving the cash benefits at an enhanced rate also.

11. What is the mode of payment of the contributions?
The employer is required to file a monthly contribution online through the ESIC portal in respect of all its employees after getting them registered. The amount of contributions that are to be paid are calculated by keeping a record of, the employee wise number of days for which the wages are paid & the amount of wages that were paid respectively to calculate the amount of payable contributions. The total amount of contribution (which includes the shares of the employees and employers) in respect of all the employees for each month must be deposited in any branch of the SBI in cash or by a cheque or a demand draft on generation of such a challan through the ESIC portals. The contributions can be paid online through SBI internet banking too.

14. What is the registration of an employee?
The registration is a process of recording the information about the entry of an employee into insured employment, under the Act.

16. What is an identity card?
After registration under the scheme, the employer can give a temporary identity certificate, affix employee’s photo and then authenticate it for use which will be valid for 3 months. This identity card acts as an identification for both claiming the medical benefit at dispensary/ hospital and for claiming the cash benefits at the ESI Branch Office.

18. Do the disablement or the dependent benefits have a minimum period of work requirement?
No, there are no qualifying conditions or contributory conditions that are attached for claiming the disablement or Dependents benefit. Even if an employee meets with an employment-related injury on the first day or on any other day before he completes his first contribution period, the benefit can be claimed.

20. Who are the individuals to be counted for the coverage of an establishment?
As long as the establishment employs a minimum prescribed number of individual it will continue to be covered under the Act even if these employees are employed at one place or any other place separate from each other, as they are engaged in the organised activity of the same establishment. Hence, all the individual including those working in branches registered office, and the sales office etc. notwithstanding the location are to be counted.

22. Who is an Immediate employer?
An Immediate Employer can be any or all of those given below: –
👉 The one who executes any kind of work inside the premises of the principal employer of a factory or an establishment.
👉 The one who executes the work in a factory or an establishment outside the premises which is supervised by the principal employer or his agent.
👉 And also the one who gives on hire the services of his own employees to the principal employer of a factory or an establishment.
👉 A Contractor

24. What are periods of contribution and benefit?
The financial year from April to March is been divided into two six-monthly contribution periods i.e. 1st April to 30th September and 1st October to 31st March of the next year. The relevant period of benefit corresponding to each period of the contribution commences three months after end of that contribution period i.e. Jan to June and July to December (The calendar year has been divided into a two six-monthly benefits periods).

25. What is ‘Sickness Benefit’?
The scale of medical benefit includes complete medical treatment from start to finish. If an employee requires the medical treatment and is absent from work for medical reasons, the Sickness benefit is paid for the period of absence after it is confirmed by the Authorised Medical Officer, this is for a period not more than 91 days in two consecutive benefit periods (one year) at 70% of the standard benefit rate, subject to the payment of the contribution for not less than 78 days in the corresponding contribution periods.

26. What is Disability?
Disability is a condition resulting from an employment injury, which may render the employee briefly incapable of doing his work and it necessitates medical treatment (temporary disablement). This may reduce his earning capacity (permanent partial disability) or it may completely deny the employee of his ability to do any formwork (permanent total disability).

28. When do the Dependents receive Benefits?
The dependents’ benefit is a monthly pension that is paid to the dependents of an employee who dies as a result of an employment-related injury or an occupational disease.

30. What are the funeral expenses? Who is to be paid?
A lump sum amount not exceeding Rs.10000/- is appropriated towards the expenditure on the funeral of a deceased employee, it is paid either to the eldest surviving member of the family or if the deceased employee was without family or not living with his family at the time of the death, then the amount is paid to the person who actually performs the funeral of the deceased employee.

31. What is the Standard Benefit Rate?
The Mean average daily wages which is calculated by dividing the total wages paid during the contribution period by the number of days for which these wages were paid.

2. Is it mandatory for employers to register under the ESI?
Yes, this is a mandatory requirement for every employer who comes under this act to register their unit/Factory/ Establishment.

5. Is it mandatory for the Employer to register under the scheme?
Yes, it is the legal responsibility of the employer to register their unit/Factory/ Establishment under the ESI Act within 15 days from the date when the act becomes applicable to them.

6. What is the ESI Code number?
This is the 17-digit unique identification number that is allotted to every registered establishment. This number gets generated through the ESIC portal on the submission of required information by the employer or it is generated on receipt of a survey report from the Social Security Officer.

8. If wages of an employee exceeds Rs.15,000/- in a month, won’t he be covered and the deduction of the contribution from his wages be stopped?
If an employee’s wages (this excluding the remuneration for overtime) exceeds the wage limit that is prescribed by the Central Government after beginning of the contribution period, he continues to be an employee till end of that contribution period and therefore, the contribution is to be deducted and paid on the total wages earned by him.

10. What is the time limit for the payment of contribution?
The contribution will be paid for the employees into a bank duly authorised by the Corporation within 21 days of the last day of the month in which the contribution is due for any wage period.

12. Is there any interest on the delayed payment?
An employer who does not contribute within the time limit shall be liable to pay simple interest at the rate of 12% per annum for each day of the default or delay in payment of contribution.

13. What are the records to be maintained for the ESI scheme?
In addition to the Muster roll, the wage record and the books of Account that are maintained under other laws, the employer is required to maintain the following records for the ESI:-
👉 The accident Register in Form-11
👉 An inspection book.
👉 Immediate employer is also required to maintain the Employee’s Register for the
👉 Employees deployed to the principal employer.

15. Why is the registration of an employee necessary?
The registration of the employees is needed to identify the employee and to provide them with the benefits under the Act which are related to the contributions paid by the employer on behalf of each of the insured employees.

17. What is the scale of the Medical Benefit?
The scale of the medical benefit includes the complete medical treatment from start to finish.

19. What are the benefits admissible to dependents?
The dependents are entitled to full medical care as and when needed, to artificial limbs, artificial appliances etc. as a part of the medical treatment. The medical benefits are also admissible to dependents during the period the employee is claiming an unemployment allowance. In case of his death during this period, his family will continue to receive the medical benefit until the completion of those twelve months. The reimbursement of the expenditure incurred on the funeral of the deceased employee. In case of death of an insured employee due to an employment injury, the widow, widowed mother and children are entitled to the Dependents’ benefit. All benefits due to the insured employee at the time of death are paid to the nominee.

21. Who is a principal employer?
The principal employer is:
In the case of factory:
👉 An owner
👉 The occupier
👉 The managing agent of the owner or the occupier
👉 The legal representatives on behalf of a deceased owner or an occupier
👉 The manager of a factory.
In the case of the Establishments belonging to or under the control of the Government of India
        👉 The Authority Specified
        👉 Head of the Department (In absence of a specified authority).
In case of other the establishments: The person responsible for the supervision and the control of the establishment.

23. Who are the individuals to be covered as “Employees”?
Any individual employed for the wages in or in connection with a factory or establishment, and:
 A. Directly employed by the Principal employer, in an establishment or a Factory within the premises or elsewhere, or in any other part, department or the branch of the factory or establishment.  Employees of the immediate employer:

👉 Being employed in the premises on any work of the factory or an establishment
👉 Being employed outside the premises on work in a factory or an establishment outside the premises being supervised by the principal employer or his agent.
👉 The employees lent or let on hire to the principal employer on any work of the factory

The following are excluded:
👉 The paid directors of a company.
👉 An Apprentice
👉 The ember of the Indian Armed Forces An employee who receives the wages above the ceiling limit for the coverage prescribed by the Central Government. The ember of the Indian Armed Forces

27. What is an ‘Employment-related Injury’?
This is a personal injury to an employee which is caused by an accident or an occupational disease arising out of and/or in the course of his employment within or outside India.

29. What are the maternity benefit?
The maternity benefit is the cyclical payments given to an insured female employee for the specified period of absence from work, due to confinement, miscarriage or the sickness out of pregnancy, premature birth of child. The amount of maternity benefit is equal to the standard benefit rate.

32. What are the advantages of ESI Registration?
The advantages of an ESI registration are as follows:
👉 ESI offers complete medical benefits
👉 It includes the dependants
👉 It can be used at other ESI dispensaries and hospitals
👉 All payments made are reimbursed
👉 It takes into account the requirements of the disabled
👉 It gives access to Medical care in ESI Dispensaries/Hospitals