Navigating ESI Procedures: What Records, Forms, and Returns Do I Need to Manage?

I am working as an accountant in a spinning mill in Tamil Nadu. Four months ago, our mill came under ESI coverage. We applied for an establishment code and successfully uploaded and paid three months of ESI contributions. Now, I want to know about procedures other than monthly contributions:

- What records and registers should I maintain?
- What forms do we have to submit?
- What returns do I have to provide - monthly, quarterly, half-yearly, and annually?
- What forms and procedures are required to avail benefits, etc.?

Up to now, I have obtained the IP numbers for the employees. How do I get the ESI Pehchan card? Some say that the family photo will be taken at the ESI office, and we don't have to provide a family photo as before. Please guide me so that I can strictly follow the procedures.

Regards

You need not maintain any physical form, register, or return now upon the implementation of the IT rollout by the department. You only need to submit online Form 1A every year and RC every half year.

Despite the implementation of the online procedure, the following registers are required to be maintained in physical form by all the employers covered under the ESI Act, 1948:

(a) Accident Book as required under Regulation 66 of ESI (General) Regulations, 1952.

(b) Inspection Book as required under Regulation 102A of ESI (General) Regulations, 1952.

Submission of Returns and Forms

Following returns or forms are required to be submitted online or as per the procedure laid down:

(a) Monthly Return of Contribution as was required earlier under Regulation 26 of the ESI (General) Regulations, 1952. Returns of contributions (for a 6-month period) are now not to be submitted to the Branch Offices since they are updated from the monthly returns submitted by the employers. This can be confirmed from the appropriate Branch Office of ESIC.

(b) Declaration forms/Returns of DFs in respect of new employees are also required to be submitted online within the specified period.

(c) Return of Information on Factory/Establishment as required under Regulation 10-C.

(d) Accident Report as and when any accident occurs (Regulation 68).

Forms and Procedures for Benefits

So far as the names of forms and their details, which are used in the Branch Offices of ESIC (for cash benefits) as well as in ESI Dispensaries (for medical benefits), the same can be ascertained after personally contacting the said offices. These forms are need-based, i.e., they are required to be completed as and when any insured person or employee of your unit will contact these offices for claims of cash benefits or medical benefits.

I suggest you also visit the websites of ESIC Headquarters as well as your appropriate Regional/Sub/Divisional Office of ESIC, from where you can also download relevant literature to enlighten you regarding the procedural as well as legal aspects of the ESI Act, 1948, and rules/regulations framed thereunder.

Regards.

In addition to the accident and inspection book, a first aid register is required to be maintained in physical form. In case of an accident or death case, the ESI Department calls for the submission of a copy of the first aid register.

Regards

According to labor law compliance, ESI should be deducted for every employee, even for those who are contractual. However, if the salary of an employee is only Rs 5000/- and they do not wish to have any deductions, what should we do?

Thanks,

Richa

According to labor law compliance, ESI should be deducted for every employee, but only for those earning up to Rs. 15,000 per month. Even for contractual employees, ESI deductions apply, including contract labor. It is important to differentiate between contractual employees and contract labor.

If an employee's salary is only Rs. 5,000 and they do not wish to have any deductions, ESI is mandatory for salaries up to Rs. 15,000 per month. There is no option for the employee or the employer in this case. However, the average minimum daily wage is Rs. 100, and there is no contribution required from the employee.

I hope this clarifies the ESI deduction process for different categories of employees.

Best regards

Thank you, Mr. Harsh Kumar Mehta and Mr. Keshav Korgoankar, for your valuable inputs.

Clarification on Declaration Forms/Returns of DF's

Declaration Forms/Returns of DF's... Does this mean the counterfoil generated after uploading IP details? Or do they refer to something else? Please clarify for me.

Guidance on Obtaining a Pehchan Card

Also, please guide me on how to obtain a Pehchan card. What are the procedures to obtain two or three cards for dependents who live in two different places other than the employee?

Regards,

Thank you, Mr. Harsh Kumar Mehta and Mr. Keshav Korgoankar, for your valuable inputs.

Clarification on Declaration Forms/Returns

Declaration Forms/Returns of DF's... Does this mean the counterfoil generated after uploading IP details? Or do they refer to something else? Please clarify for me.

Obtaining a Pehchan Card

Also, guide me on how to obtain a Pehchan card. What are the procedures to get two or three cards for dependents who live in two different places other than the employee?

You have to save copies of challans, take printouts, and file them systematically for your ready reference. Similarly, a statement of employee-wise contributions made could also be printed and filed. This may be required for your reference, to clarify when employees and family go to an ESI dispensary/hospital, where ESI staff might ask for these details such as when and how the ESI contributions were remitted. On such occasions, you may give them xerox copies of these particulars so that ESI facilities could be availed smoothly. Maintaining these records would also be very handy when ESI Inspectors visit your office.

The Pehchan card (in other words, IP ID cards) will have to be obtained from the Branch Office concerned. This can be obtained by every employee along with his/her family personally going to the ESI-Local Branch Office to which your office is attached. There is an arrangement made by ESI to photograph each member of the family together on particular days and timings (you can check this by telephoning the ESI office). After the photos are taken, ESI makes arrangements to send the individual ID cards directly to the employer concerned by courier for distribution to the employees. If there are different arrangements, you can ascertain from the local Branch office related to your office.

Dear Members,
Daily wages is now Rs. 137 instead of Rs. 100 as per the amendment dated 14-06-2016 In the Employees' State Insurance (Central) Rules, 1950, in rule 52.
Copy of notification is attached.