Overview

The Employee's State Insurance (ESI) scheme is a social security and health insurance scheme for employees in India. The scheme provides benefits such as medical treatment, sickness, maternity, and disability benefits to employees. Employers are required to register under the ESI scheme and contribute a percentage of their employees' salary towards the scheme. ESI return filing is the process of submitting details of the employer's contribution towards the ESI scheme.

Benefits

The following are the benefits of ESI return filing:

• Compliance: ESI return filing helps employers comply with the legal requirements of the ESI scheme. Non-compliance can lead to penalties and legal action.
• Employee welfare: The ESI scheme provides benefits to employees such as medical treatment, sickness, and disability benefits. ESI return filing ensures that these benefits are provided to eligible employees.
• Transparency: ESI return filing helps maintain transparency in the contribution and benefit processes of the ESI scheme. It allows employers and employees to access and verify their contribution and benefit records.
• Ease of filing: ESI return filing can be done online through the ESI portal, making the process quick and easy.

Required Documents

The following documents are required for ESI return filing:

• Employee details: Employers must maintain records of their employees' personal details such as name, address, date of birth, and salary details.
• Attendance records: Employers must maintain records of their employees' attendance to calculate the ESI contribution.
• Challans: Challans are payment receipts for the ESI contribution. Employers must keep records of the challans paid for each contribution period.
• Bank statement: Employers must maintain a bank statement of the ESI contribution payment made for each month.
• ESI contribution statement: Employers must generate a contribution statement for each contribution period, which shows the ESI contribution made for each employee.
• Form 6: This is a declaration form submitted by the employer to the ESI authorities, stating the number of employees and their salary details.
• Form 7: This is a register maintained by the employer that contains the details of the employees who are eligible for ESI benefits.
• Form 5: This is a return of contributions submitted by the employer for each contribution period, which shows the details of the employees and the ESI contribution made.

Registration Process

The following are the steps involved in ESI return filing:

• ESI registration: Employers are required to register under the ESI scheme by submitting an application to the ESI authorities. Once registered, the employer will receive a 17-digit code number that must be used for all future ESI-related transactions.
• Maintaining records: Employers must maintain records of their employees, such as their name, address, date of joining, and salary details, in the specified format.
• Calculation of ESI contribution: Employers must calculate the ESI contribution for each employee based on their salary. The current rate of contribution is 4% of the employee's salary, with the employer contributing 3.25% and the employee contributing 0.75%.
• Payment of ESI contribution: Employers must deposit their ESI contribution for each month by the 15th of the following month. The payment can be made online through the ESI portal or through authorized banks.
• Filing ESI returns: Employers must file their ESI returns for each contribution period by the 11th of the following month. The returns must be filed online through the ESI portal.

Penalties for Non-filing

• Late fee: Employers are required to file ESI returns within 42 days from the end of the contribution period. If the returns are filed after the due date, a late fee of Rs. 25 per day is levied, subject to a maximum of Rs. 5,000.
• Interest: If the ESI contribution is not paid by the due date, interest is levied at the rate of 12% per annum.
• Penalty for non-filing of return: If an employer fails to file the ESI return within the due date, a penalty of 5% of the total contribution amount is levied for each month of delay.
• Prosecution: In case of willful default or failure to pay the ESI contribution, the employer can be prosecuted under Section 85 of the ESI Act, which can result in imprisonment for up to 2 years and/or a fine of up to Rs. 5,000.

Why approach LAWYASA?

• Expertise: Lawyasa has a team of experienced lawyers who specialize in various fields of law, including family law, property law, and corporate law. We can provide you with expert legal advice and guidance on your specific legal issue.
• Convenience: Lawyasa is an online legal platform, which means that you can access our services from anywhere, at any time. You can consult with our lawyers, get legal documents prepared, and even file a case in court, all from the comfort of your own home.
• Cost-effective: Lawyasa offers cost-effective legal services, which can save you a lot of money compared to traditional law firms. We offer transparent pricing, so you know exactly how much you will be paying for our services upfront.
• Customised solutions: Lawyasa provides customised legal solutions tailored to your specific needs. We take the time to understand your legal issue and provide you with the best possible legal advice and representation.
• Customer support: Lawyasa provides excellent customer support. Our team is available to assist you with any questions or concerns you may have, and keep you informed throughout the entire legal process.

How can LAWYASA assist?

Lawyasa can assist in ESI Return filing in the following ways:

• ESI registration: Lawyasa can help businesses register for ESI and obtain an ESI registration number.
• ESI compliance: Lawyasa can ensure that businesses are compliant with ESI regulations and guidelines.
• Preparation of documents: Lawyasa can assist businesses in preparing the necessary documents required for ESI return filings, such as employee details, attendance records, challans, bank statements, and contribution statements.
• Filing of ESI return: Lawyasa can file the ESI return on behalf of businesses, ensuring that the return is filed accurately and on time.
• Resolving issues: Lawyasa can assist businesses in resolving any issues related to ESI return filings, such as late fees, penalties, or interest.
• ESI audit: Lawyasa can conduct an ESI audit for businesses to ensure that they are compliant with ESI regulations and guidelines.

Frequently Asked Questions