ESIC Compliances Services

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The ESIC scheme provides essential financial support to employees in times of need, such as sickness, disability due to work-related injuries, or death. This scheme involves a 4% contribution from the worker’s salary, with the worker contributing 0.75% and the employer contributing 3.25%. ESIC also offers assistance to insured employees during difficult times. Compliance with the ESI Act, 1948 is mandatory, and failure to comply may result in fines and penalties for the organisation.

Compliance with the Employees’ State Insurance (ESI) Act is crucial for businesses in India. Our team of professionals is committed to making ESI compliance easier for you, so you can concentrate on your primary business activities without worry. SANKHLA CONSULTANTS recognizes the significance of ESI compliance and offers a variety of services to assist you in smoothly navigating the intricacies of the ESI Act.

ESIC Act 1948 Compliances Services:

Setting a strong foundation is key. Our team will assist you through the ESI registration process to ensure compliance right from the start.

Accurate calculation of ESI contributions is essential. We guarantee precise calculations and timely deposits to the ESI authorities.

Keeping detailed records is crucial for compliance audits. We assist in maintaining and managing the necessary records to ensure they are current and easily accessible.

Timely filing of ESI returns is crucial to avoid penalties. Our experts handle the entire process, from preparation to filing, to ensure accuracy and compliance.

Our team conducts thorough compliance audits to detect any potential issues and provide proactive solutions. We offer expert advice to strengthen your compliance procedures.

Other Miscellaneous ESIC Compliances

Some other PF ESI statutory compliances include:

Compliance	Description
Attendance Register	Maintain a record of employees’ attendance.
Register of Wages	Ensure that all wages given to staff are accurately documented.
Inspection Book	Document all inspections performed on the property.
Monthly Return and Challan	Monthly returns and challans must be submitted by the 15th day of the subsequent month.

Compliance Under ESI Act :

The following is a list of ESI PF compliances (Returns) that need to be followed after completing ESI registration online:

After a successful registration under the Employees’ State Insurance Act of 1948, the ESI registration status of the company is activated.

It is essential to keep and submit a log of employee attendance as a requirement for ESI returns.

Businesses that are not currently under the jurisdiction of the ESI Act have the option to render their registration number inactive within a period of 6 months in order to prevent facing penalties for non-compliance.

The register for Form 6, which includes information about the company’s staff, needs to be completed and submitted as required.

In order to extend the dormant status, businesses need to access the ESI website within 180 days of the dormant period beginning.

It is required to submit a record containing details of employee salaries and wages together with the tax returns.

It is necessary to keep an accident register to record all incidents or accidents that take place on the company’s property.

Monthly Contributions: Pay ESIC contributions (a percentage of employee wages) on a monthly basis. As of the latest guidelines, the employer contributes 3.25% and the employee contributes 0.75% of the wages.

ESIC Code: Once the registration is approved, you will receive a permanent ESIC Code, which should be used for all ESIC-related transactions.

Form 1: Employee Declaration Form
Form 5: Monthly Contribution Form
Form 6: Register of Employees
Form 16: Accident Report
Form 18: Dependents Benefit

Precise preparation and submission of monthly returns and challans pertaining to ESI contributions are crucial for ESI registration compliance.

By adhering to this ESIC compliance checklist, employers can ensure compliance with all statutory requirements, avoid penalties, and ensure that their employees benefit from the ESIC scheme.

Why Choose Sankhla consultants for ESIC Compliances?

We can help with advice at the beginning, through ensuring you meet all the ESI compliance requirements and maintaining your organisation in legal good standing. “Sankhla Corporate Services Pvt. Ltd.” specialises in providing comprehensive services for EPF & ESIC Compliances.

Tailored Compliance Services
Team Expert Knowledge
Completion Timeliness
Peace of Mind

We recognize the individuality of each business and customise our services to fit your industry, size, and ESIC compliance requirements.

Our team of experts possesses in-depth knowledge of the ESI Act, allowing us to offer precise and current compliance solutions.

We ensure timely completion of all compliance tasks, from registration to return filing, meeting all required deadlines.

Partnering with SANKHLA CONSULTANTS for compliance ensures peace of mind, as we ensure your ESI obligations are fulfilled, freeing you to concentrate on business growth and productivity.

Advantages of ESIC Compliances Services

The primary benefits of ESI statutory compliance are as outlined below:

Upon commencement of employment, workers and their dependents who are registered under ESI Registration are entitled to medical treatment and insurance perks as per Section 57 of the Act.

Expectant mothers are entitled to maternity benefits for a maximum of 26 weeks, with the possibility of a 30-day extension based on medical advice.

Employers are required to provide 70 days of wages in the two most recent contribution periods in order to be eligible.

Maternity benefits include the following:

Confinement benefits for twelve (12) weeks (Form 21 and 23).

Miscarriage or medical termination of pregnancy benefits for six (6) weeks from the date of miscarriage.

One month’s benefits for sickness caused by premature birth or pregnancy (Forms 8, 9 & 10).

Other benefits for childbirth death under Form 24.

– The family of the deceased employee receives an additional Rs. 10,000 rupees towards funeral costs.

– Female dependents of insured employees who are in areas lacking healthcare facilities under the ESI scheme are eligible to claim expenses related to their confinement.

– Insured workers who are permanently physically challenged have the opportunity to undergo vocational rehabilitation training at the VRS center.

– ESI members are entitled to take sick leave for up to 91 days per year, with 70% of their monthly wage covered during their absence due to illness.

– If a worker passes away during their employment, their dependents will receive 90% of the deceased employee’s monthly income.

– Employees who suffer from permanent or temporary disablement due to unforeseen circumstances are eligible for specific benefits.

– Workers with disabilities are provided with disablement benefits equivalent to 90% of their monthly income.

ESIC beneficiaries suffering from chronic illnesses are eligible for an extended sick leave period of up to 2 years following the standard 91 days of sick leave.

ESIC enrolled individuals who choose to undergo sterilization are entitled to increased sickness benefits equal to 100% of their daily average earnings.

Workers who become physically disabled as a result of a work-related injury or hazards can apply for benefits for physical rehabilitation.

ESIC retirees or those selecting VRS/ERS are granted yearly medical care benefits.

Applicability of Returns

ESI and PF return filing involves these Forms Filled by Employer

Form	Purpose	Frequency	Timeframe
1	Employers Registration Form	Within 15 days	Registration
3	Return of Declaration Forms	Monthly	Monthly
5	Return of Contributions	Every Six Months	Half Yearly
6	Register of Employees	Update through Portal anytime	At Registration; As required
11	Accident Registration	Record Personal Injury to an IP	As required
12	Accident Reporting	Submit within 24 hours (1 day) of Casualty	Within 24 Hours (1 day) of Incident

Procedure for ESI Registration

The steps to register for an ESI in India are outlined as follows:

Step: 1. ESI Login

Login into ESIC IN Portal. Access the ESIC portal, then select the ‘Sign Up’ button located within the ‘Employer Login’ section on the main page. Proceed by filling in the necessary information.

Step: 2. Confirmation Mail

You will receive a confirmation email on your designated email address and on your mobile phone upon form submission. The email will contain the username and password details for registering as an employer or worker under the ESI scheme.

Step: 3. Employer Registration Form-1.

ESIC employer Login and Access the ESIC portal and choose ‘New Employer Registration’ from the menu, then select the appropriate ‘Type of Unit’ from the drop-down menu. Fill out the ‘Employer Registration – Form 1’ with details related to the unit, employer, and employees.

Step: 4. ESIC Payment for Registration.

Upon completion of the Employer Registration Form-1, you will be directed to the ‘Payment of Advance Contribution’ page. Kindly proceed to make the advance contribution for a period of 6 months.

Step: 5. Registration Letter.

Upon successful ESI payment of the six months’ advance contribution, the system will generate a Registration Letter (C-11) which will contain a 17-digit Registration Number assigned by the ESIC department. This letter serves as proof of employer Registration under the ESI scheme.

Receive Registration Number:

After successful submission, you’ll receive a provisional ESIC registration number. This will be used for future reference and transactions related to ESIC card download.

ESI Forms Filed by Employee Includes:

Form	Description	Deadline
1	Declaration Form	Within 10 days
1A	Family Declaration Form	Within 15 days
9	Sickness, T.D.B. & Maternity Benefit	Submit without delay to Branch Office
14	Permanent Disablement Benefit	Declared as permanently disabled
15	Dependent Benefit	Certified by Gazetted officer
20	Maternity Benefit after the death of IP	Submit Certificate in Form 24-B within 30 days of IP’s death
22	Funeral Expenses	Nominee or eldest member can claim
72	Duplicate ESIC Smart Card	Applied when Card is lost or Defaced

ESIC rules for company:

Employees’ State Insurance Corporation ESIC Rules for Employers are governed by the Employees’ State Insurance Act, 1948, which provides social security benefits to employees in India. Below are the key ESIC rules that companies must follow:

1. Applicability of ESIC
2. ESIC Contribution Rates
3. ESI Registration
4. Employee Registration
5. Compliance with ESIC Rules
6. Benefits Under ESIC
7. Compliance Audits and Inspections
8. Penalties for Non-Compliance
9. Grievance Redressal
10. ESIC Forms and Returns

ESIC is applicable to all companies with 10 or more employees (20 or more in some states) earning a gross salary of up to ₹21,000 per month (₹25,000 for disabled employees).
It is mandatory for both the employer and employees to contribute to the ESIC fund.

Employee Contribution: 0.75% of the gross monthly salary.
Employer Contribution: 3.25% of the gross monthly salary.
These contributions are deposited to the ESIC fund, which is used to provide medical and other benefits to employees.

Companies must register themselves and their eligible employees with ESIC within 15 days of becoming eligible.
The company must obtain an ESI Code Number for registration purposes.

Every employee covered under ESIC must be registered, and an Insurance Number (IP Number) is issued.
The employer is responsible for submitting employee details and maintaining up-to-date records.

Employers must file ESI contributions every month on or before the 15th of the following month.
Annual returns of contributions must be submitted to the ESIC office.
Employers are required to maintain accurate records of employees’ wages, attendance, and contribution details.

ESIC offers various benefits to employees, including:

Medical benefits for insured employees and their dependents.
Sickness benefits for employees during medical leave.
Maternity benefits for female employees.
Disability benefits in case of injury or disablement.
Dependent benefits in case of an employee’s death due to work-related injury.

ESIC officers can inspect company records to ensure compliance with the Act.
Employers must maintain ESIC-related records (such as wage registers and attendance records) and present them during audits.

Non-payment or delayed payment of contributions can lead to penalties, which include interest on delayed payments (up to 12% per annum) and potential legal action.
Failure to register employees or to maintain accurate records can also result in fines and legal consequences.

Employers and employees can raise grievances or disputes through the ESIC online portal or at regional offices.

Employers are required to file various forms like Form 01 (Employer Registration), Form 3 (Return of Declaration), and Form 6 (Register of Employees) regularly.

ESIC Compliances FAQs:-

What is ESI in salary?

ESI in salary refers to the Employees’ State Insurance (ESI) contribution, which is a government-managed scheme aimed at providing medical and financial benefits to Indian employees in case of sickness, maternity, or workplace injury. Under the ESI Act, 1948, employers and employees contribute a percentage of the employee’s salary towards this insurance fund.

The employer contributes 3.25% of the employee’s gross salary, while the employee contributes 0.75%. This scheme is applicable to employees earning up to ₹21,000 per month. ESI provides employees with access to medical care and compensation in case of accidents or illness.

This deduction appears in the employee’s payslip and is a crucial part of statutory compliance for companies in India.

What is ESI Service?

ESI Service refers to the Employees’ State Insurance (ESI) scheme, which provides medical, cash, maternity, disability, and dependent benefits to employees. Managed by the Employees’ State Insurance Corporation (ESIC), this scheme is a part of the social security system in India aimed at providing financial protection in case of health-related contingencies.

Key features of ESI Service include:

Medical Care: Free medical treatment for insured employees and their families.
Cash Benefits: Compensation for loss of wages due to illness, maternity, or disability.
Maternity Benefits: Paid leave for childbirth or maternity.
Disability Benefits: Financial support for employees who suffer from work-related injuries.
Dependent Benefits: In case of the death of an insured employee, dependents receive financial compensation.

Employers and employees contribute a percentage of the employee’s salary to avail of these benefits, making ESI compliance mandatory for Employers organizations with a certain employee threshold in India.

How to find ESIC number?

Follow bellow steps, to get your ESIC number:

Check your payslip: Employers usually mention the ESIC number on the employee’s monthly payslip.
Employer HR Department: Contact your company’s HR department. They can provide you with your ESIC number if it has been registered under the Employees’ State Insurance (ESI) scheme.
Visit the ESIC Portal: Go to the official ESIC Official portal (www.esic.in). You can use the “Know Your Insurance Number” feature by providing details like your Aadhaar number, registered mobile number, or email to retrieve your ESIC number.
ESIC Helpdesk: Contact the ESIC helpline at their toll-free number or email support for assistance with retrieving your ESIC number.

These methods will help you quickly locate your ESIC number for accessing ESI services and benefits.

What is IP number in ESIC?

The IP number in ESIC (Employees’ State Insurance Corporation) stands for Insured Person Number. It is a unique identification number assigned to employees who are covered under the Employees’ State Insurance (ESI) scheme. This IP number is crucial for accessing various ESI benefits such as medical care, cash benefits, and more. It helps in tracking an employee’s ESI contributions and entitlements efficiently.

How to download ESI card?

To download your ESIC (Employees’ State Insurance Corporation) card, follow these steps:

Visit the ESIC Official Website:
Go to the official ESIC portal at www.esic.in.
Login to the Portal:
Click on the ‘Login’ button and enter your credentials (username and password) to access your account. If you don’t have an account, you’ll need to register or get access through your employer.
Navigate to the ‘Employee Services’ Section:
Once logged in, find the ‘Employee Services’ section or a similar menu that deals with your personal details and services.
Select ‘Download ESIC Card’:
Look for the option to download or print your ESI card. This option is usually available under a section like ‘Print ESI Card’ or ‘Download ESI Card.’
Enter Required Details:
You may be prompted to enter certain details like your ESI IP number or other identification details.
Download and Save:
After entering the necessary information, you should be able to view and download your ESI card in PDF format. Save the file to your device or print it for your records.

For issues or further assistance, you can contact the ESI helpline or visit the nearest ESIC office.

How to claim ESIC amount?

To claim ESIC (Employees’ State Insurance Corporation) benefits, follow these steps:

Ensure Eligibility:
Confirm that you meet the eligibility criteria for claiming ESI benefits, such as having paid ESIC contributions and being covered under the ESIC scheme.
Obtain Medical Certification:
For medical benefits, get a medical certificate from an authorized ESIC hospitals or ESI hospital dispensary. For other claims like sickness or maternity, ensure you have the required documentation.
Fill Out the Claim Form:
Download and complete the appropriate ESI claim form from the ESIC official website or obtain it from your local ESIC office. Common forms include:

Form 19: For sickness or maternity benefits.
Form 20: For dependent benefits.
Form 21: For disability benefits.

Submit the Claim Form:
Submit the completed form along with supporting documents to your nearest ESI branch or online through the ESIC portal if available. Make sure to include all necessary documents like medical certificates, proof of identity, and ESI contributions.
Follow Up:
Track your claim status through the official ESIC portal or by contacting the local ESIC office. Keep a record of your claim submission and any communication with ESIC authorities.
Receive Benefits:
Once your claim is processed and approved, the ESIC benefits will be disbursed according to the type of claim (e.g., medical reimbursement, cash benefits).

For detailed instructions and support, refer to the ESIC Official website or consult with the ESIC office.

How to check ESI number?

To check your ESI number, follow these steps using high search volume keywords:

Login to ESIC Portal: Visit the official ESIC website (www esic in) and log in using your username and password.
Check Payslip: Your ESI number is often listed on your monthly payslip provided by your employer.
Contact HR: Reach out to your company’s HR department. They can help you verify your ESI number if you’re registered under the Employees’ State Insurance (ESI) scheme.
“Insured Person” search option: Use the ESIC portal’s ‘Insured Person’ search tool by entering your Aadhaar number or other registered details to find your ESI number.
ESIC Helpline: Contact the ESIC helpline for assistance in retrieving your ESI number through their customer support service.

These steps will help you easily find or check your ESI number for accessing ESI benefits.

ESIC Compliance Checklist:-

Checklist for ESIC inspection/audit

The Employees’ State Insurance Corporation (ESIC) requires employers to adhere to various compliance measures to ensure that employees are covered under the scheme. Below is a detailed ESI compliance checklist to help ensure full compliance with the ESIC Act:

1. Registration under ESIC:

Ensure that the business establishment is registered under ESI if employing 10 or more employees (20 in some states) with wages up to ₹21,000 (₹25,000 for disabled persons).
Obtain a 17-digit registration number for the establishment.

2. Employee Registration:

Register all eligible employees under the ESIC scheme.
Collect required documents like Aadhaar card, bank details, and family details for employee registration.
Generate Employee Insurance Number (IP Number) for each employee through the ESIC portal.

3. Contribution Payment:

Ensure that the employer’s contribution is 3.25% of the employee’s wages, while the employee’s contribution is 0.75% of their wages.
Contributions must be paid within 15 days of the end of each month.
Use the ESIC payment gateway to deposit the contributions before esic challan payment due date.

4. Maintenance of Registers:

Maintain records of employees’ wages, attendance, and contribution deductions.
Keep a record of accidents or injuries at the workplace.
Ensure proper maintenance of the Form 6 – Employee Register for all ESIC-insured employees.

5. Filing of Monthly/Quarterly Returns:

Submit Form 5 for the monthly contribution details.
File half-yearly returns (April to September and October to March) before 11th November and 12th May, respectively.
Ensure timely filing to avoid penalties.

6. Claim Process and Benefits:

Inform employees about the benefits under the ESIC scheme like medical, maternity, disability, and funeral benefits.
Help employees submit claims in case of illness, disability, or other entitled benefits.
Ensure that employees use their ESIC smart cards for healthcare services at empanelled hospitals.

7. ESIC Records and Inspection:

Keep records of all payments, employee registrations, and benefit claims for at least 5 years.
Be prepared for inspections by ESIC officials, ensuring all documents are up-to-date.
Provide any requested records, such as wage registers and contribution challans, during inspections.

8. Compliance with Medical Benefits:

Ensure that employees and their families receive medical care through ESIC-recognized hospitals and dispensaries.
Ensure that employees know their rights to sickness benefits and the conditions for availing such benefits.

9. Maternity Benefits:

Confirm that female employees are aware of their maternity benefits, including 26 weeks of paid leave and related medical care.
File the necessary forms on behalf of the employees to ensure they receive maternity benefits under the ESIC Act.

10. Accident Reporting:

Report any accident or injury occurring at the workplace to ESIC using Form 16 and submit the accident report online within 24 hours.
Ensure employees know the procedure to avail disability benefits and compensation under ESIC.

11. Compliance Audits companies:

Conduct internal compliance audits periodically to ensure adherence to ESIC guidelines by Compliance audit firms.
Address any compliance gaps or errors to avoid fines and penalties.

12. Communication & Awareness:

Keep employees informed about their ESIC benefits.
Conduct training sessions or provide guides to ensure employees understand how to access their ESIC benefits.

13. Penalty and Interest for Non-Compliance:

Late payments attract an interest of 12% per annum on the unpaid amount.

Be aware that failure to comply with ESIC regulations can lead to penalties ranging from ₹5,000 to ₹25,000.

Get expert guidance from skilled ESIC consultant at Sankhla Consultants for ESIC Compliances

1. Compliance with ESI Act.

2. Filing of ESI and PF returns.

3. ESIC and PF compliance.

4. Assistance with registration documents for PF and ESIC.

5. Ensuring compliances with ESIC Act.