ESI Return Filing – Timely & Accurate Compliance

At CACSFinacc Services, we understand the importance of timely and accurate filing of Employees' State Insurance (ESI) Returns. ESI is a self-financed social security scheme under the Employees' State Insurance Act, 1948, providing medical, disability, maternity, and unemployment benefits to employees earning ₹21,000 or less per month (₹25,000 for disabled employees). Compliance with ESI regulations is crucial for businesses to avoid legal penalties and ensure employee welfare.

What is ESI Return Filing?

ESI Return Filing is a mandatory requirement for employers registered under the ESI Act. It involves the submission of monthly and half-yearly returns that detail:

• Employee contributions.
• Employer contributions.
• Employee wages and employment details.
• Any updates regarding employee additions or exits.

Our ESI Return Filing Services Include:

1. ESI Registration and Compliance Setup:
   • Quick and seamless ESI registration for your business.
   • Generation of Employer Code Number.
   • Guidance on documentation and eligibility criteria.
2. Monthly ESI Contribution Filing:
   • Calculation of ESI contributions at 4% of gross wages (3.25% by employer and 0.75% by employee).
   • Preparation and submission of Challan Form (Form 5) through the ESIC portal.
   • Generation of payment receipts and confirmation of compliance.
3. Half-Yearly ESI Return Filing:
   • Filing of Form 6 Return by November 11th and May 11th for the respective half-years.
   • Inclusion of employee attendance, monthly contributions, and wage details.
4. Maintenance of Records:
   • Accurate maintenance of Form 3 (Accident Register), Form 7 (Wage Register), and employee records.
   • Digital storage and easy retrieval of records to avoid discrepancies.
5. Employee Updates and Amendments:
   • Addition and removal of employees in the ESI portal.
   • Support for updating salary changes and demographic details.
6. Support for ESI Inspections and Assessments:
   • Assistance during ESIC audits and inspections.
   • Preparation of required documentation and reconciliation of records.
7. Online Access and Reporting:
   • Access to real-time reports for ESI payments and returns.
   • Simplified dashboards for easy compliance tracking.

Key Updates for Financial Year (FY) 2025–26

1. Revised ESI Contribution Rates

The ESI contribution rates remain unchanged for FY 2025–26:

• Employer's Contribution: 3.25% of the employee's wages
• Employee's Contribution: 0.75% of the wages

These contributions are mandatory for establishments employing 10 or more persons earning wages up to ₹21,000 per month.

2. Updated Filing Deadlines

Timely filing of ESI returns is essential to maintain compliance. The due dates are as follows:

• Monthly ESI Contribution Payment: 15th of the following month. For instance, contributions for April 2025 are due by 15th May 2025.
• Half-Yearly ESI Return Filing: Due by 11th May and 11th November each year.

3. Penalties for Non-Compliance

Failure to adhere to ESI payment and filing deadlines can result in:

• Interest: 12% per annum for each day of delay in payment.
• Damages: Ranging from 5% to 25% per annum, depending on the duration of the default.

These penalties underscore the importance of timely compliance to avoid financial and legal repercussions.

At CACSFinacc Services, we offer comprehensive solutions to manage your ESI obligations:

• Accurate Calculation: Ensuring precise computation of contributions based on current wage structures.
• Timely Filing: Adhering to all statutory deadlines to prevent penalties.
• Documentation Management: Maintaining essential records such as attendance registers, wage registers, and accident registers.
• Compliance Advisory: Providing guidance on ESI regulations and updates to keep your business compliant.

Ensure seamless ESI compliance with CACSFinacc Services. Contact us today to streamline your ESI return filing process.