How to File ESI online?

Esi Online process

ESI is a Government of India’s insurance benefits scheme that provides workers health insurance,  maternity coverage, disability, and other benefits. Under the terms of the ESI Act, of 1948, employers are required to file ESI online for their workers. Under ESI coverage, Employees and his/her dependent family members are protected from medical risks including illness, and injury-related costs.

How to file ESI?

Before filing an employee ESI contribution online, the employer must have there ESI registered and hold the ESI login ID, the ESI & PF can be registered using common registration at Shram Suvidha online at free of cost, the link to register is here. Within one day from Prakasha & Co you will get the ESI registration.

Step 1: Ensure Eligibility for ESI

The first criteria to register with ESI as an employer, your company must have an employee count 10+ above.

And ESI filing purposes, Employees with salaries up to 21000 per month are eligible to register under ESI Act. The other eligibility criteria are:

• Employees limit: Establishments with 10 or more employees are required to register under the ESI Act.
• Salary or Wage Ceiling: Employees whose monthly wages are ₹21,000 or less (₹25,000 for persons with disabilities) are eligible for ESI coverage.

If your establishment meets these criteria, you can proceed with registration.

Step 2: Determine ESI Contribution

Every company there ESI to be remitted to Esi department by online on or before 15^th of the each month to get the continuity of the ESI benefits their staff.

The Esi contribution limit is as follows:

• Employee Contribution: 0.75% of the employee’s total Gross salary.
• Employer Contribution: 3.25% of the employee Total Gross salary.
• Total Esi Contribution: 4% (0.75%  employee + 3.25% company ) of the gross wages.

Wages Ceiling: Employees earning ₹21,000 or less per month are covered under ESI. Employees earning above this threshold are not eligible for ESI coverage.

Step 3: Log in to the ESIC Portal

Once you have the ESI registered, you can access the ESIC Portal for the filing process.

Visit the ESIC Portal: Go to ESI employer login link

Login:

• Enter ESIC user name as “Employer ESIC code” example: 49000659860001099
• Next Enter your ESIC Password,  If you don’t have a password, you can reset it by following the instructions.

Checklist for Monthly ESI upload

1. Update for New Joiners:

1. Any new joiners and there salary is upto 21000, add in ESIC within 10 days of joining.

2. Check with HR if they are holding ESIC IP numbers; if not, create a new IP number.

3. To create a new IP, get the new employee’s pan, Aadar, email, mobile number, family members’ data information and nominee, bank a/c number, and IFSC code.

 

1. Verify Employee Esi Database:

a. Review the current month’s employee Esi database to ensure all records are updated.

b. Update the status of employees who:

1. has left the organization.
2. Are on leave or other non-contributing statuses.

 c. Review and Submit:

d. Validate the data as per HR payroll file before uploading data to Esi

e. Submit the ESI return and generate the Esi challan to make the payment

Step 4: Employee ESI data format

 

Step 5: Upload the Esi Contribution online

After logging in to the ESIC, the next step is to click on the tab, File monthly contribution to upload. The next steps are:-

1. Choose the Contribution Period: Select the previous month & year for which you want to file the contribution.
2. Verify Employee Information: Ensure that all the employee details like total headcount, and there total Esi wages, and contribution amounts, are correct before final submit.

 

Step 6. Fill Maternity Contribution Details

1. You must make sure of the filing ESI contributions, including Maternity Contributions (MC):

   Data about Female Employees: Enter the information about female employees who qualify for maternity benefits under the ESI program. During the previous year, these workers had to have contributed for at least 70 days.

2. Contribution Calculation: Using the salaries of qualified female employees, the system will determine the MC (Maternity Contribution).

 

Step 7. Verify Esi wages Uploaded Details

  Employees ESI salary Data Verification:

• Ensure that the employees ESI wages of all employees are correctly taken as per HR input, including the female employees eligible for maternity benefits.
• Check that the number of days attended and that all contributions (both employer and employee) are calculated correctly.

  employees Maternity Contribution (MC):

• For eligible female employees, verify that the Maternity Contribution has been correctly calculated. This is usually part of the overall contribution and is a part of the total ESI contribution.
• Ensure that the female employees have contributed for at least 70 days within the last 12 months to qualify for maternity benefits.

  Contribution Amounts:

• Check that the employee esi share (0.75%) and the employer share (3.25%) of the total contribution at 4% for each employee.
• Verify the total contribution amounts, including the maternity benefits contribution, and ensure that the final figures match what is expected.

Step 8. Make Esi Payment:

The next step is to make the ESI payment through the bank.

1. Select esi Payment Method:
   • Payment can be made through Net Banking a the ESIC portal.
   • Click on the esic pay link
   • Enter the Esic code and search, you will find the esic challan number,
   • Click on the Esic challan and choose the bank to proceed “Make Payment”
2. Complete Payment:
   • Make the payment using the details on the challan.
   • Ensure the payment is made on or before 15 of the following month. For example, for Nov-2024 contributions, payment must be made on or before Dec 15^th 2024.

Step 9 : Download the Esic Contribution Receipt

After the esi payment, you will receive a Payment Acknowledgment or Challan Receipt.

• Download the Acknowledgment: Save the ESI paid acknowledgment for your records. This serves as proof of payment and can be used for audits or future reference.

 

Step 10: Submit Zero ESI Return

Every ESI registered, must file there ESIC return everymonth though no employees comes under ESI limit, this is in line with ESIC Act, most new private companies get there ESIC thorugh there Registration Spice forms, hence after 6monhs of waiting period of there esic registration, they must file the ESIC Nil return to keep the Esic compliant, else they have to make penalty on this.

 

 Step 10:  Review ESIC Compliance

Important Things in Esic

• Make the ESIC employee’s applicability check every first week after the half-year period ends like 1^st April to 30^th Sept, 1^st Oct to 31^st March, to exclude the ESI deduction for staff whose salary is more than 21000
• Maternity Eligibility: female staff has made at least 70 days contributions to the ESI fund during the previous 12 months, she is qualified for maternity benefits.
• Timely Filing: To avoid late fees and fines, be sure that payments and contributions are submitted by the fifteenth of each following month.
• Penalties for Postponement: ESI Penalties may be imposed for late payments or for not filing on time or delay, make the response to ESIC notice to cleanup.
• Correct Information: Verify all employee ESI registered information, including salaries and contributions for female employees who qualify for maternity benefits.

 

With the support of Prakasha & Co., Bhushan T. presents this comprehensive guide to ESI filing.