ESI or Employee State Insurance demands monthly contribution from both the employee and the employer and the same can be made either online or offline. You can generate an e-Challan on the ESIC portal and use it to make the required payment. In this in-depth guide by H&R Block India, you will learn how you can generate the challan and make the monthly payments.
Employee State Insurance scheme or ESI is an integrated measure of social insurance implemented in 1948 with an objective of accomplishing the task of protecting employees. The Insurance protects you against the impact of incidences of sickness, maternity, disablement and death due to employment injury and to provide medical care to insured persons and their families. The ESI scheme applies to the factory and other establishments like shops, Hotels, road transport etc. where the number of employees is 10 or 20 (varies from state to state) and drawing a salary of Rs. 21,000 or less.
The ESI scheme is financed by the contribution of both employer and employees. The employer contributes 4.75% of the wage payable to the employee whereas, the employee contributes 1.75 % of the wage payable to him/her.
Note: Employees earning less than Rs. 100 per day as daily wage are exempted from payment of their contribution.
ESI payment of monthly contribution is completely online without any manual intervention and fairly simple. You can make payment of your monthly contribution and get a Challan which is a document resembling receipt or invoice by simply following the steps explained below;
Note: The last date for ESI monthly payment is 15th of every month.
Have you receive a letter for payment of default amount. Don’t worry in case you forgot to pay your monthly contribution, just follow the steps mentioned below:
Have you received a letter for recovery of your monthly contribution? Don’t worry just follow the steps explained above (How to generate Challan for defaulting amount?)
ESIC portal automatically stores information regarding few things as stated below:
Payment against E-challan at bank generally means that you can directly go to the bank and make your payment for the monthly contribution physically. The bank verifies the check digit which is incorporated to the bank as a duplicate copy of the Challan is to be presented at the bank for payment.
As per your information given to the bank officers, the bank verifies the same stored in the data i.e. the Challan number, Amount payable and mode of payment. Once you make the payment, the details are then transferred to the ESIC through MIS data and the bank officer will return you the duplicate copy and keep a second copy of the challan.
A. ESI scheme is a self-financing scheme.
A. Yes! It is a statutory responsibility of the employer.
A. It is a 17 digit unique identification number.
According to the recent amendment possibly about 50 lakh workers and their families will come under the ESIC scheme. Although the net take home salaries for eligible employees will come down, there are a surplus of benefits that can be availed under the ESIC scheme. The employee can avail full medical care is provided to the employee and his family members from the day he enters insurable employment without any limits on expenditure of the treatment of an employee or his family member.
Get your ESI registered today!!
Saving taxes and filing income tax return accurately becomes very easy when you have professional help. This is where we come into the picture. You can either use our intuitive tax filing platform to easily file your tax return or let our tax experts file it for you. We have a team of in-house tax experts who can accurately file your tax returns online while giving you maximum tax benefits.