Introduction

Employee State Insurance is referred to as ESI. It offers medical and disability benefits to employees who have health-related concerns. 

The ESI Act of 1948 stipulated that employees earning Rs. 15000 per month or less have to make a statutory 1.75% contribution to the ESI Fund. In the case of the ESI system, employers will be required to pay 4.75%.

Who Can Sign Up for the ESI Program?

The Employees’ State Insurance Corporation (ESIC), acting on behalf of the Government of India’s Ministry of Labour and Employment, is in charge of overseeing the ESI. 

Every month, 4% of the employee’s gross pay is contributed to the ESI fund by both the company and the employee.

Within 15 days of being applicable, all Indian businesses with ten or more employees are required to register with the ESIC.

How do you sign up for the ESI program for your company?

The statutory authority has made the registration process entirely online in order to make it easier for business owners to register. 

Paper copies of documents are not required. However, in order to expedite the registration procedure, you should have a few electronic copies of critical documents on hand.

The advantages of online ESIC payments

The various features and benefits of using ESIC for online payments are enumerated below.

1. ESIC online payments must be made by the employer as well as the employee.
2. Indian nationals can pay their challan online without visiting any government offices.
3. Alternatively, they can do it from the comfort of their own home by going online.
4. In contrast, employer contributions account for 1.75% of employee wages or 4.75% of employee wages.
5. Significant time and effort savings, as well as increased system openness, will come from this. 
6. In addition to burial costs and a rehabilitation allowance, medical benefits are provided to the insured individual and their spouse, as well as extended sickness benefits for specific conditions, improved sickness benefits, and dependent maternity.

Requirement for Compliance with ESI Return Due Date

ESIC registration must be completed, and any changes to information must be reported. Every employee is required to provide a declaration in the format specified. Within ten days of the declaration forms being provided, the declaration form must be sent to the relevant office.

Each employee will get a temporary identification certificate and insurance number from the appropriate office upon receipt of the declaration forms, which the employer will then provide to each employee.

Each covered employee is required to provide family members’ details, which must be sent to the relevant office within ten days of the information being provided. An identity card must be issued to each employee by the relevant office.

Contribution returns must be submitted. within 42 days of the donation period’s end, in four copies. Contribution payments must be made within 21 days following the final day of each calendar month. Reports must be submitted every six months.

Penalties for Unpaid or Delayed ESI Contributions or ESI Return Due Date

The Corporation may impose and collect damages in accordance with the Regulations for any nonpayment or late contributions. The corporation should stick to the ESI Return Due Date. 

These damages are calculated at rates commensurate with the length of the delay but not more than the amount of the required contribution:

1. In less than two months: 5% annual damages
2. Delay of two to four months: 10% annual damages
3. Four to six months delay: 15% annual damages
4. If there is a six-month delay, damages are 25% annually.
5. If the employer does not comply, Section 85(a) may be used to take legal action; further infractions may result in more severe fines. 
6. The goal of the ESI program is to advance employee well-being, and the employer must achieve this goal.

ESI Payment Due Date 

Monthly contributions to ESI must be made by the 15th. Employers who sign up for the program must make the necessary payment by the deadline at a bank that the regulatory body has approved.

All ESI-registered companies are required to submit their annual and half-yearly returns. All of the modifications made over the year must be mentioned. 

Additionally, they must turn in the half-yearly ESI contribution, which must be paid to the closest branch office or ESIC regional commissioner between April 1 and September 30 and October 1 and March 31.

Within 42 days of the end of the half-year period, which falls on November 12 for April through September and May 12 for October through March, the ESI return must be filed.

At Lawgical Adda, we make the ESI (Employee State Insurance) registration process simple, fast, and hassle-free. Protect your employees and ensure compliance with labor laws. Protect your employees while avoiding legal complications, all at an affordable and transparent fee. 

With Lawgical Adda, you can trust in 100% compliance and professional guidance every step of the way. Don’t delay take the next step towards safeguarding your employees and your business! Contact us and get started with your ESI registration today!