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Remittance Of ESI Contribution

Remittance Of ESI Contribution

E.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act. The contribution payable to the Corporation in respect of an employee shall comprise of employer’s contribution and employee’s contribution at a specified rate. The rates are revised from time to time. Currently, the employee’s contribution rate (w.e.f. 01.07.2019) is 0.75% of the wages and that of employer’s is 3.25% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage upto Rs.137/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.

Who and when ?

An employer is liable to pay his contribution in respect of every employee and deduct employees contribution from wages bill and shall pay these contributions at the above specified rates to the Corporation within 15 days of the last day of the Calendar month in which the contributions fall due. The Corporation has authorized designated branches of the State Bank of India and some other banks to receive the payments on its behalf.

There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under.w3w

Contribution Period Cash Benefit Period
1st April to 30th Sept. 1st Jan of the following year to 30th June
1st Oct to 31st March of the year following. 1st July to 31st December.

 

Procedure to Do

  1. Wage ceiling for coverage – Rs.21000/- and below.Employee Share -0.75% Employer Share – 3.25% First prepare xls file format which contains IP Number, Name, Working Days,Gross wages, Reason of Zero wages
  2. Convert this XLS file into XLS format precribed by ESIC (Employee State Insurance Corporation) (ESIC Office).

3.Upload the file into ESIC portal and prepare monthly challan for remittance. Need not submit Return of Contribution (RC) separately for half yearly and annual.