Detailed Explanation on ESIC Challan Preparation and Employee Exit Procedures for Recently Joined and Departed Employees

I have a query regarding ESIC. I registered a new employee for ESIC on April 5, 2025, even though their joining date was April 1, 2025. However, this employee left on April 5, 2025. I am unsure about the appropriate way to prepare the challan. Should I mark it as '0', or should I proceed with this month and then exit the employee in the subsequent month?

When an employee joins and leaves within the same month, the ESIC challan preparation can be a bit tricky. In this scenario, you should proceed with preparing the challan for the month of April and include the employee. However, when making the payment, mark the contribution as '0' for this employee since they were not employed for the entire month. For the subsequent month, when the employee is no longer with the organization, you can then exit them from the ESIC records. This approach ensures compliance with ESIC regulations while accurately reflecting the employee's tenure and contributions. Remember to maintain proper documentation of the exit process for audit and record-keeping purposes.