ESI Return Compliances
At VETRI AUDIT SERVICES PRIVATE LIMITED, we offer expert support in fulfilling ESI (Employees’ State Insurance) return compliances, ensuring your organization meets all regulatory requirements under the ESI Act, 1948. Our services are designed to help employers avoid penalties, stay audit-ready, and support employee welfare seamlessly.
What Are ESI Return Compliances?
ESI return compliances refer to the mandatory filing and payment obligations that every eligible employer must fulfill with the Employees’ State Insurance Corporation (ESIC). These returns ensure timely contributions, accurate wage reporting, and proper maintenance of employee insurance records.
ESI applies to organizations with 10 or more employees earning gross wages up to ₹21,000 per month (₹25,000 for persons with disabilities).
Mandatory ESI Compliances for Employers
Monthly ESI Contribution Payment
Employers are required to:
- Deposit both employer and employee contributions by the 15th of the following month.
- Make the payment via the ESIC online portal using the generated challan.
| Contribution Rates | 2024 onwards |
|---|---|
| Employer | 3.25% of gross wages |
| Employee | 0.75% of gross wages |
| Total | 4.00% of gross wages |
Half-Yearly ESI Return Filing
Employers must file bi-annual returns detailing employee wages and contributions:
| Return Period | Due Date |
|---|---|
| April to September | 11th November |
| October to March | 11th May |
Information Required for ESI Return Filing
While filing returns, employers must provide the following:
- Company Details: ESIC Code, Name, and Address
- Employee Details: Name, Insurance Number (IP Number), Date of Joining/Exit
- Wage Details: Total wages paid during the contribution period
- Contribution Breakdown: Employee and employer shares
- Employee Status: New registrations, left employees, or updated records
How to File ESI Returns Online
Filing returns online is mandatory and follows this standard process:
- Visit the ESIC Employer Portal.
- Log in using your ESIC Employer Code and password.
- Navigate to the "Monthly Contribution" section.
- Enter/upload salary and contribution details.
- The system auto-calculates the total contributions.
- Generate and pay the challan via net banking.
- Submit the Return of Contribution (RC) online.
Additional Employer Obligations
To stay compliant, employers must also:
- Maintain attendance and wage registers.
- Maintain an accident register (Form-11).
- Provide and update employee details regularly in the ESIC portal.
- Assist employees in getting ESI Pehchan Cards (Insurance Identity Cards).
Consequences of Non-Compliance
| Non-Compliance | Penalty / Consequences |
|---|---|
| Late Payment | Interest @ 12% p.a. on delayed amount |
| Failure to File Returns | Penalty up to ₹5,000; risk of inspection |
| Data Suppression/Fraud | Legal prosecution, fines, imprisonment |
| Contribution Default | Recovery proceedings, property seizure |
Expert Tips to Stay ESI Compliant
- Set automated reminders for payment and return due dates.
- Regularly reconcile payroll records and verify data before filing.
- Ensure all eligible employees are registered with valid IP Numbers.
- Use trusted payroll and compliance software to auto-generate ESI data.
- Conduct periodic internal audits to check for gaps in compliance.
Our ESI Compliance Support Includes:
- Registration under ESI Act
- Monthly contribution calculation & challan generation
- Half-yearly return filing
- Employee registration and record updates
- Advisory on legal updates and compliance risk
- ESIC audit support & response handling
Need expert assistance with your ESI compliance?
Get in touch with VETRI AUDIT SERVICES PRIVATE LIMITED – your trusted partner for professional statutory compliance services.
Contact us today for a consultation!
