ESI or Employee State Insurance is a social security scheme aimed at providing health and medical benefits to employees. The scheme is applicable to all establishments that employ ten or more employees. The employer is required to contribute 4.75% of the employee’s salary to the ESI fund, and the employee is also required to contribute an equal amount.
ESI returns refer to the statement that contains details of the contributions made by the employer and employee to the ESI fund. Every employer who has deducted ESI contributions from their employee’s salary is required to file an ESI return with the government. The return must be filed electronically using the ESIC portal.
The ESI return must contain details such as the name and address of the employer, the number of employees covered under the scheme, the amount of contribution made by the employer and the employee, and any other details required by the government. The return must also contain details of any arrears or late payments made by the employer.
Filing an ESI return is mandatory for all employers who have employees covered under the scheme. Failure to do so can result in penalties and legal action. It is important to file the return accurately and within the specified due date to avoid any penalties or interest.