ESI & EPF Return

ESI Return and EPF Return

ESI (Employee's State Insurance) is one of the most popular schemes. It is a self-financing social security and also a health insurance scheme for all Indian Workers. It is necessary for almost all the private limited companies to get them registered under the ESI Act 1948. In case they fail to obtain the requirement enrollment using ESI Registration procedure, then they have to face the penal actions in due course of time.

According to the act, if any employee is earning less than Rs.15000 per month then he is liable to contribute 1.75% of his pay towards the ESI, while 4.75% will be contributed towards his ESI by the company. This scheme provides various benefits to the employers and has a large network of dispensaries, and hospitals throughout the country for efficient medical care. All the establishment/Units/factories with over 10 employees earning less than Rs.15,000 on monthly basis are required to mandatorily apply for ESI Registration. All entities having ESI Registration must then file a return and the ESI return is half-yearly.

EPF (Employees Provident Fund) is a government established savings scheme for employees of the organized sector. The interest rate of EPF is declared by the EPFO (Employees provident fund Organization) every year. EPFO is a statutory body under the Employee provident fund Act, 1956. Only the employees of the company who are registered under the EPF Act can invest in the EPF (Employees provident fund). Both the employer as well as the employee has to contribute 12% of the employee's basic salary every month to the EPF account.

Advantages of Employee State Insurance (ESI)

Sickness Benefit

It is the form of cash compensation at the rate of 70% of wages payable to the insured employees during the period of their certified sickness for a maximum of 91 days in the year. To be eligible for the sickness benefit, the insured worker is required to contribute for 78 days in the 6 months contribution period. Workers suffering from long-term disease can claim extended sickness benefits for up to two years at the rate of 80% of wages.

Medical Benefit

People registered under ESI are provided with full medical care along with their family from the same day a person enters insurable employment. Medical care is also provided to the retired and the permanently disabled person who is insured

Maternity Benefit

It is provided for the Pregnancy/Confinement for three months, which is further extendable for one month on medical advice at the rate 100% of wages subject to the contribution for 70 days in the preceding years.

Disablement Benefit

From the day of entering insurable employment, temporary disablement benefit at the rate of 90% of wage irrespective of having paid any contribution. In case of permanent disablement, the benefit is paid at the rate of 90% of wage on a monthly basis depending upon the extent of loss of earning capacity as it is certified by a Medical board.

Advantages of EPF (Employees provident fund)

Pension Benefit

  • In case of the death of a family member of the employee, he will get a pension.

  • Scheme Certificate: This certificate includes the services as well as the family details of the member. This certificate is issued to the member who applies for it and retired before the age of 58. This scheme is better than the Withdrawal scheme as the member who holds this certificate even after his death his family will get the pension.

Death Benefits

  • After the death of the member, the family entitled to receive provident fund amount or else the nominee appointed by a member

  • Capital return of pension

Withdrawal Benefits

  • EPFO (Employees provident fund organization) guarantees pension to members, even if he has not contributed to the pension fund

  • Calculation of this amount depends only on (i) Last average salary (ii) Service (Not actually based on the amount present in pension Fund account)

  • An employee who is not eligible for the pension can withdraw from the pension account.

How to File ESI Return?

You can fill the ESI return through ESIC (Employee State Insurance Corporation's) website by the following the steps given below

  • Every employer has given a 17digit code at the time of registration which will be used as User ID and password

  • Select the Monthly contribution section in the Home page

  • Go to the View RC and select it

  • After proceeding, all the details of the employee's paid contribution by the employer and the details of wages will be displayed on the screen.

  • Do self-certification under the monthly contribution section, then check Mark the declaration and submit the return.

  • Kindly upload a chartered accounts certificate before clicking on the submit button if you are employing forty or more employees.

By following the above steps, the Return of contribution is submitted by the employer.

Resolve your queries

1. What is the ESI Scheme?

ESI stands for Employees state insurance scheme of India. It is a multi-dimensional social security scheme that provides socio-economic protection to the employees in the organized sector against the events of disablement, sickness, maternity, and death due to the injury of the employee. This scheme also provides medical care to insured employees and their families.

2. Who administers the ESI Scheme?

ESI scheme is administered by a statutory corporate body called ESIC (Employees State Insurance Corporation)

3. How does this scheme benefit the employees?

This scheme provides full medical care to the insured employee registered under ESI Act, 1948. It also provides financial assistance in order to compensate for the loss of his/her wages during the period when he/she is not capable to do work due to sickness, maternity and employment injury. This scheme is also applicable to the employee's family.

4. What is Sickness benefit?

Medical benefit involves complete medical treatment from start to finish. In case an employee requires the medical treatment and is absent from work for some medical issues, the sickness benefit is paid for the period the employee is absent after confirmation of an Authorized medical officer. This is for the period not more than 91 days in two consecutive benefit periods.

5. Will the delayed payment by an employer attract any interest?

An employer who fails to pay the contribution within the given time limit prescribed under regulation 31, then he shall be liable to pay simple interest at the rate of 12% per annum on each day of delay in payment of contribution.

6. What is the contribution of the provident fund both by the employer and employee?

The employee contributes 12% of his salary and the same amount is contributed by the employer

7. How much time does it take to get P.F and pension money if an employee resigns from the job?

To receive the PF and pension money the employee has to fill the 19 & 10C Form and submit the same to P.F Desk, which is further submitted to the P.F officer after two months. The employee then has to wait for 2 months as per the rule that an employee should not be in employment for two months if he has to withdraw the PF amount after resigning. After these two months are completed forms are submitted to the regional provident fund commissioner officer after that the employee is eligible to withdraw the PF amount along with the interest.

8. What is the 19 & 10C form?

Form 19 is for the Provident fund withdrawal whereas Form 10C is not the pension scheme withdrawal.

9. When is an employee eligible for the pension scheme?

For an employee to enjoy the pension scheme he has to complete membership of the fund for 10 years.

10. Is there any time limit for the withdrawal of provident Fund dues?

In the case of resignation from the service, an employee has to wait for 2 months for the withdrawal of the PF amount.

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