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ESI/PF Return
mployees State Insurance Corporation (ESIC) of India is a significant multifaceted social system designed to provide socio-economic security to workers and their dependents. The system ensures that the workers and his family do not suffer in case of unseen, unfortunate circumstances.
Employees’ State Insurance Corporation is a statutory corporate body set up under the ESI Act 1948, which is responsible for the administration of ESI Scheme. The ESI is a self-financed social security comprehensive scheme devised to protect the employees against financial distress such as sickness, disablement or death due to employment injuries.
EPF stands for Employee Provident Fund that is a scheme for providing monetary benefit to all salaried employees which act as the best investment methods
After taking registrations it is mandatory to file the returns on time as required under the statute otherwise there are prescribed penalties that have to be borne by the employer.
Eligibility
Employee State Insurance scheme-is applicable to all the factories and establishments where: Organization having count of employees 10 or more and. Their monthly salary should not exceed Rs. 21,000 and Rs. 25,000 for people with disability.
Employee Provident Fund scheme- is applicable to all the factories and establishments where: Organization having count of employees 20 or more and. Their monthly wage is not more than Rs 15000.
Advantage of ESI/PF Returns
ESI Benefits
- Medical benefit
- Sickness benefit
- Maternity benefit
- Disablement benefit
- Dependents benefit
- Funeral expenses
- Rehabilitation allowance
Due Dates of Filing ESI Return- The due date for ESI payment is 21st of every month and the returns are filed on half yearly basis which are as follows :
April-September : 11th of November
October – March : 11th of May
EPF Benefits
- Tax Benefits
- Premature withdrawal
- Pension Benefits
- Financial Support
- Contribution by employee
- Long Term Planning
- Interest benefits
Due Date of filing PF Return- The due date for PF payment is 15th of every month and the returns are filed on a monthly basis by 25th of the following month. Also an annual return is required to be filed by the 25th of April of the following financial year.
Documents Required
- Digital Signature Certificate
- Employee wise breakup of contributions
- Copy of Challan Payments
- Any accidents or mis-happening details
- Employee wage register
- Any other details, as required
Registration and Filing of Returns
An employer who is eligible to be registered as per the Employee State Insurance Act 1948 (“Act”) must do so by abiding by the following steps:
- An employer needs to keep all documents ready for reference.
- Next, an employer must file Form 1, which is available in PDF format on the ESIC website. ESIC will verify all the details and issue a 17 digit unique number. This unique number is required for all filings.
- Every employee will receive an ESI card post submission of the form stating all details by the employer. The documents required for registration are:
- PAN card of the business.
- Address proof of business.
- The license obtained under Shop and Establishment Act or Factories Act.
- Basic documents required as per the nature of entity – Articles of Association, Memorandum in case of a company, partnership deed in case of a partnership and Limited Liability Partnership.
- Details of all directors, partners, and shareholders.
- Details of all employees along with their salary information.
- Bank details.
On successful registration of the establishment, returns can be filed online by the employer. To file ESI returns online, the employer must follow the below-mentioned procedure:
- The login credentials will be available once registered. The same will be required for the online filing of returns.
- Once the login credentials are available, the employer must log in to the official website that is www.esic.nic.in.
- Once he is able to log in using the credentials, there is a list of actions that are available. For instance, modify employee details, report an accident and so on.
- To file the return, the employer must first verify if all the employee details are up to date and then file the return.
- The employer must then fill the bank details and submit them to file the returns.
- After that, the employer can go to the ‘List of Actions’ and ‘Generate Challan’.
- The challan must be downloaded and documented for future reference and inspections.
- The website also offers various actions that the employer can take like modify employee details, report accidents, add new employees, and so on.
- The contributions towards employee state insurance are very beneficial to employees, and hence the provisions for nonpayment or delayed payment are very stringent.
- The half-yearly return of ESIC for the period April to September is due by 12 November, and October to March is due by 12 May.
ESI
Employers have the responsibility to contribute to the ESI fund by deducting the employees’ contribution from wages and combining it with their own contribution.
Employers have to deposit the combined contributions within 15 days of the last day of the Calendar month. The payments can be made online or to authorized designated branches of the State Bank of India and some other banks.
EPF
Consequences of Non-Payment or Late Payment of Employees’ Contribution
Amount deducted from employee’s wages as an employee contribution is deemed to have been entrusted to the employer. Therefore the employer has a higher responsibility to deposit the contribution with ESI.
Non-payment or delayed payment of the Employee’s contribution deducted from the wages of the employee amounts to ‘Criminal Breach of trust’ is punishable under IPC Section(s) 406, 409 and also an offence u/s 85 (b – g) of ESI Act.
Non-payments, delayed payments, or falsifying payments under ESI Act may attract imprisonment for a period extending up to 2 years and a fine of up to Rs 5,000.
Consequences of Delayed Payment
An employer who fails to pay the contribution within the limit specified in the regulation shall be liable to pay simple interest at the rate of 12% per annum in respect of each day of delay or default in payment of contribution.
Penal Provisions for Non-Payment or Delayed Payment of Contribution
The Corporation may levy and recover damages as per the Regulations, at the following rates, not exceeding the amount of contribution payable for default or delay in payment of the contribution.
| Period of Delay | Rate of Damages in % p.a. |
| Less than 2 months | 5% |
| 2 to 4 months | 10% |
| 4 to 6 months | 15% |
| 6 months and above | 25% |
The employer is liable for prosecution under Section 85(a) for the first time, and if the employer repeats the offence, he will be liable for enhanced punishment for every repetition. The ESI has been established for the benefit and betterment of workers, and the employer must ensure that the purpose is served.
