File ESIC Return in India

The Employees’ State Insurance Act, of 1948 (ESI Act), was the first major legislation on social security for workers in India. File ESIC return in India is important. The ESI Act 1948, encompasses certain health-related eventualities that the workers are generally exposed to; such as sickness, maternity, temporary or permanent disablement, Occupational disease, or death due to employment injury, resulting in loss of wages or earning capacity-total or partial. 

Administered by Employee State Insurance Corporation (ESIC) it aims at upholding human dignity in times of crisis through protection from deprivation, destitution, and social degradation while enabling the society the retention and continuity of socially useful and productive manpower. In this comprehensive guide, we’ll navigate through the process of filing ESIC returns in India step by step, ensuring clarity and compliance for employers.

Understanding ESIC

According to the provisions of Employee State Insurance Act, every establishment having ten or more employees have to get themselves mandatorily registered under the Act. Both the employer and employees drawing a salary of upto Rs. 21000 per month makes contribution to the ESIC Fund. The employer’s contribution is 3.25% of the employee’s wages while the employee contributes 0.75%. The employer is responsible for deducting the employee’s share and depositing both contributions with ESIC. 

ESIC Return Filling

Every employer registered under the Act is required to file returns either monthly or half yearly. The ESIC return due date depends on whether the employer choose to file returns monthly or half yearly. 

• Employers choosing to pay monthly returns need to file it by 15th of the next month. Even if there is no employee contribution during the month, the Employer needs to submit a NIL Declaration to ESIC Department. 
• Employers choosing to pay returns half yearly need to file every six months. The due date for the period of 1st April to 30th September is 12th November and for the period of 1st October to 31st March is 12th May every year.

How to file ESIC half-yearly return online?

• The ESIC half yearly return filing procedure begins after the successful registration of employer under Employee State Insurance Act, he can file ESIC return in India through ESIC return filing portal using his unique User ID, password and a 17-digit code.
• Fill in the required information as asked and click on the “Login” button to access the employer’s dashboard.
• On the newly opened webpage, fill in the accurate information of the employees and navigate to “File Monthly Return” or “File half yearly return” option on the dashboard.  
• Correct any information if necessary among the list of options for editing employee details available on the portal. 
• In order to submit the monthly ESI contribution fill in the bank details and press on the submit button to initiate the contribution process.
• After the payment has been successfully initiated, visit the “List of Action” page on the portal and click on “create currency” to generate challan to make the contributions. 
• Click on the checkbox to accept the declaration made thereafter and then click on “self-certification” to confirm the compliance with ESI regulations.
• However, if the number of employees in the organization are more than 40, the Chartered Accountant certificate needs to be uploaded as a part of submission process.
• At last, review all the details and information entered and on satisfaction click on the “submit button” to finalize the ESI return submission.

How to file ESIC return after due date?

Any employer who fails to file ESIC return in India within the due period can file ESIC return after the due date as well provided such payment would attract interest and penalties.

As per Regulation 31 A of the Act, any employer who fails to pay contribution within the periods specified, shall be liable to pay simple interest at the rate of 12 per cent. per annum in respect of each day of default or delay in payment of contribution. 

And Regulation 31C of the Act states that If an employer fails to pay contribution within the periods specified, or any other amount payable under the Act, the Corporation may recover damages, not exceeding the rates mentioned below, by way of penalty: —

Non- payment and late payment of contribution also attracts penal provisions under Regulation 85 and 86 of the Act. Along with this, Section 405, 406 and 409 of Indian Penal Code also specifies that if an employer deducts employees contribution from their wages and not deposit the said contribution to ESIC, he commits an offence of Criminal Breach of Trust and shall be punishable with fine or imprisonment extendable to 3 years.  

How to file ESIC return after 42 days?

Regulation 26 of Employees’ State Insurance (General) Regulations, 1950 requires every employer to send a return of contribution to appropriate office in respect of all employees for whom contributions are payable in a contribution period, so as to reach that office within 42 days of the termination of contribution period. 

The ESIC in its further notification of 2019 stated that after the expiry of 42 days the rule shall not permit any change in the submitted return of contribution. The notification stated that:

• With effect from contribution period ending 09/2019 onwards the employer will not be allowed to create challan or pay the amount for any month beyond the contribution period after end of 42 days of the current contribution period.
• If any employer wishes to add further information to already submitted RCs of earlier periods, he may be allowed to do so after due verification and approval of concerned RO/SRO and this must be shown separately as Supplementary RC in the system. 

Therefore, no change shall be permitted after the expiry of 42 days.

Conclusion 

In summary, understanding the ESI Return process is essential for employers to fulfill their legal obligations and ensure that employees receive the benefits they deserve. By adhering to the guidelines and timely filing, employers contribute to a robust social security system that supports the well-being of Indian workers. Stay updated with more such legal updates with team Legal Window. Feel free to reach us at [email protected].