• Employee’s State Insurance(ESI) is a self-financing social security and health insurance scheme for Indian workers
• Employee State Insurance managed by the Employee State Insurance Corporation which is an autonomous body created by the law under the Ministry of Labour and Employment, Government of India.
• To give benefit the indian workers in terms of health and social security, concept of ESI has been introduced.
• The Employees’ State Insurance Act, 1948 enacted by the legislature as an integrated need based social insurance scheme that would protect the life and living of workers in sickness or any kind of accident, maternity, temporary or permanent physical disablement, death due to employment injury resulting in loss of salary or earning capacity of an Individual.
• It was the first major legislation on comprehensive social security for workers in Independent India based on the principle of “Pooling of risks and resources”.
Wage Limit under ESI:
• Employees earning 21,000 INR per month or less are applicable for ESI contribution.
• Employee contribution: 1.75% of total wages.
• Employer Contribution: 4.75% of total wages.
Companies which are registered under ESI Act, need to file ESI return half-yearly.
Contribution Period: 1st April to 30th September and 1st October to 31st March
Last Date of Submission of Return:
• For the period 01st Apr to 30th Sep : Within 42 days from the end of half-yearly period(Upto 12th November.)
• For the period 01st Oct to 31st March: Within 42 days from the end of half-yearly period(Upto 12th May.)
Manner and Time Limit for making Payment of contribution
The total amount of contribution i.e. employee’s share and employer’s share is to be deposited with the authorized bank through a challan in the prescribed form on or before 21st of the month following the calendar month in which the wages fall due
Procedure to file return of contribution:
• Login to ESIC Portal with 17 digit registration code and password.
• Select the monthly contribution tab and drill down to select “view RC” Tab
• After feeding the details of wages bill, supplementary challan may require to generate depending upon there is any short payment.
• Miscellaneous challan has to be created by the amount of whose payment is to be made on the omitted wages (not related to identifying).
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