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Online ESIC Payment using E-Challan

Last Update Date : April 29, 2019
Estimated Read Time: 5 min

esic e challan payment

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.

What is ESI Scheme?

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.

Generate e-Challan for ESIC Monthly 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;

  • STEP 1: Firstly login to the home page: using Mozilla Firefox.
  • STEP 2: Once you logged in, click on the “generate challan” tab to create a challan for the payment of monthly contribution.
  • STEP 3: You can now see the challan created, with submit and cancel option. Click on the submit option to generate the challan number.
  • STEP 4: You can now note down your challan number as shown in the image below, and click on the “continue” to proceed further to the payment gateway of SBI’s multi-option payment system.
  • STEP 5: Here, you can either select SBI for payment through SBI or under the other payment modes choose other “bank option” for payment through other banks internet banking.
  • STEP 6: You will be directed to State Bank Multi-option Payment system, select your bank for internet banking and click on “make payment”, you will be redirected to corresponding bank gateway.
  • STEP 7: Let’s say you select Bank of Baroda, you will be redirected to the payment gateway now, enter the ID to login followed by the username and sign in password.
  • STEP 8: Finally when you’re redirected to the payment details click on “pay” to proceed with payment.
  • STEP 9: Lastly you will receive a payment successful confirmation receipt. In due course, you will be automatically redirected to ESIC page where you can see the transaction completed message. Take a print of the same for future reference.

Note: The last date for ESI monthly payment is 15th of every month.

How to Generate e-Challan for Defaulting Amount?

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:

  • STEP 1: Firstly, log in on the homepage i.e., click on “Recovery/Defaulter challan” as shown in the image below to get redirected to next page.
  • STEP 2: Once you’re redirected to the next page, click on the submit to generate challan number.
  • STEP 3: you can now note the Challan number and click on “continue” to proceed further to the payment gateway.
  • STEP 4: Here on, you can follow the same explained above (how to generate monthly e-challan).

How to Generate e-Challan for Recovery Amount?

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?)

What is the Information Stored in ESIC portal?

ESIC portal automatically stores information regarding few things as stated below:

  • Employer’s name and code number
  • The monthly contribution to be paid online
  • The date on which the challan was created
  • The fourteen digit Challan number which is auto-generated as a check digit

What Does Payment against E-challan at Bank mean?

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.

People also ask

Q. How is the ESI scheme funded?

A. ESI scheme is a self-financing scheme.

Q. Is it mandatory for the employer to register under the scheme?

A. Yes! It is a statutory responsibility of the employer.

Q. What is code number?

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!!

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CA Madhuri Marne
Madhuri is a tax expert at H&R Block (India) with over a decade of professional experience. Having co-authored a book on economics for the ICAI exam, she now enjoys writing about tax-related topics in a simple and easy manner. Outside of work, Madhuri is passionate about teaching students who are appearing for professional exams.

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