ESI RETURN

ESI return filing ensures that all contributions made by both employers and employees are accurately recorded and credited to the respective employee accounts under the Employees’ State Insurance Corporation (ESIC). Employers are required to submit these returns on a monthly or half-yearly basis, depending on the reporting requirements, through the official ESIC online portal. The return includes important details such as employee names, insurance numbers, wages paid, and contributions made by both parties during the specified period. The contributions under the ESI scheme are made at fixed rates — with the employer contributing 3.25% of the employee’s wages and the employee contributing 0.75%. These funds are used to provide various benefits such as medical care, maternity benefits, disability compensation, unemployment allowance, and other welfare services to insured employees and their families. Timely and accurate filing of ESI returns is crucial for ensuring that employees continue to receive uninterrupted medical and financial benefits. Failure to file or delays in submission can attract penalties and legal consequences under the ESI Act, 1948. The introduction of online filing facilities has simplified the process, enabling employers to upload data, generate challans, and make payments digitally. 

Description

The process involves several steps, including: 

ESI Contribution Calculation: Employers calculate the ESI contributions for each covered employee based on their wages/salary. The contribution rates are set by the government and are typically a percentage of the employee's wages.

Preparation of ESI Challan: After calculating the ESI contributions, employers generate an ESI challan, which is a statement showing the total amount of ESI contributions to be deposited with the ESI authorities. This challan also includes details such as the employer's and employees' ESI contribution amounts.

ESI Payment: Once the ESI challan is prepared, employers deposit the ESI contributions along with administrative charges with the ESI authorities through the designated bank.

ESI Return Filing: After making the ESI payment, employers file ESI returns with the ESI authorities. ESI returns typically include details such as the total ESI contributions made, employee-wise contribution details, wages/salary details, and other relevant information.

ESI return filing is typically done online through the ESI portal. It is essential for employers to ensure timely and accurate ESI return filing to comply with ESI regulations and avoid penalties for non-compliance.


Frequently Asked Questions

Browse practical answers curated by our CA and CS desks for ESI RETURN.

Understanding ESI Returns

A return under the ESI scheme is a periodic filing by an employer, reporting details of eligible employees, wages, contributions made by employer and employee, through the ESIC portal.

Any establishment registered under the ESI Act that has to contribute to the scheme must file returns—this includes those covered under the Act based on employee count or wage criteria.

Filing ensures employees get the benefits of the ESI scheme (medical, maternity, disablement) and helps the employer stay compliant with the ESI Act to avoid penalties.How often are ESI returns filed?

In many cases, returns must be filed every six months for the contribution period (April-September and October-March), in addition to monthly contributions and challans.

Due Dates & Filing Process

For the period April to September the due date is around 11 November, and for October to March around 12 May (may vary slightly).

Typically, employer contributions must be paid and the return/challan generated by the 15th of the next month for the previous month.

The employer logs in to the ESIC portal using their employer-code, verifies employee data, uploads contribution/challan details, self-certifies or uploads CA certificate (if required), and submits.

Even if there are no changes, a “nil” return should often be filed, showing zero contributions, to maintain compliance.

Compliance Issues & Risks

Delayed payment or non-filing may lead to interest charges (for example up to 12% per annum) and penalty/damages that can reach up to 25% per annum of the due contribution

Yes — non-payment of employee contributions may lead to prosecution under the IPC (Sections 406/409) or Section 85 of the ESI Act, as employee contributions are treated as entrusted funds.

 Employers should maintain registers such as attendance, Form 6 register, wages register, monthly challans, accident registers (if applicable) and employee contribution details.

Incorrect data can lead to mismatch in employee coverage or claims, may trigger notices or audits, and could result in penalties, blocked benefits or compliance issues.

How BizPriest Helps & Advantages

BizPriest offers end-to-end support: verifying eligibility, compiling employee & wage data, preparing and uploading returns, monitoring due-dates and ensuring compliance to avoid penalties.

Yes — BizPriest can handle multiple establishments under one employer-code or multiple codes, coordinate data across locations, and ensure each unit files correctly.

You gain timely compliance, reduced risk of penalties, accurate filings that protect employee benefits and audit readiness, as well as expert guidance on document maintenance and records.

Generally you’ll provide: employer registration code, list of employees (with UAN or ESIC numbers), wage & contribution data, monthly challans/payslips, attendance/registers, digital access to the portal (if required).

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