Skip to main content
Chartered Accountants India
Rahul B. Kavale & Co.Chartered Accountants
ESIC Returns (Monthly Contribution & Form 5 Filing)
Returns & Filings•Rahul B. Kavale & Co.

ESIC Returns (Monthly Contribution & Form 5 Filing)

Monthly employee contribution compilation, online ESIC payment challan generation, half-yearly Form 5 compliance, new worker IP enrollment, and e-Pehchan card setup.

Read our approach
Establishments covered under the Employees' State Insurance Act, 1948 are legally required to deduct ESIC contributions from employees earning monthly gross wages up to ₹21,000 (₹25,000 for persons with disabilities) and remit both employee and employer shares by the 15th of the following month. The statutory contribution rate stands at 4% of gross wages (3.25% contributed by the employer and 0.75% deducted from the employee). In addition to monthly online payment challans, employers must maintain employee insurance details, generate e-Pehchan cards for medical benefit access, and file half-yearly return statements in Form 5 on the ESIC Insurance Portal. Failure to deposit contributions on time triggers interest at 12% per annum under Section 39(5)(a), damages up to 25% under Section 85B, recovery proceedings via Form C-18 notices, and loss of corporate income tax deduction under Section 36(1)(va). We deliver prompt, comprehensive monthly ESIC compliance management to keep your business fully protected.

What we do

Our work in this practice group is structured around the records, deadlines, and decisions involved:

  • Strict compliance with the monthly 15th contribution deadline.
  • Protection against 12% statutory interest and penal damages under Section 85B of the ESI Act.
  • Preservation of corporate income tax deductions under Section 36(1)(va).
  • Immediate generation of Insurance Numbers (IP numbers) and e-Pehchan cards for employee medical care.
  • Accurate handling of wage exemptions, overtime pay, and temporary wage threshold crossovers.
  • Representation and defense before ESIC recovery officers in response to C-18 inspection notices.

How the engagement works

Regulation 31 of the Employees’ State Insurance (General) Regulations, 1950 requires employers to deposit monthly contributions within 15 days of the calendar month. Regulation 26 mandates submission of return of contributions in Form 5 within 42 days of the end of each contribution period.

Scenario 1: An employer with 10+ employees covered under ESIC requiring monthly wage data compilation and online challan payment.

Scenario 2: An establishment onboarding factory or frontline staff needing instant IP registration and digital e-Pehchan cards.

Scenario 3: A business resolving wage discrepancy notices or Form C-18 demand letters issued by the ESIC regional branch.

Scenario 4: An enterprise handling half-yearly Form 5 return filing and annual reconciliation of contribution periods.

Scenario 5: An organization undergoing statutory financial audit requiring verified ESIC challan receipts and payment proofs.

Monthly Wage Eligibility Review

We filter employee rosters by the statutory ₹21,000 wage ceiling, compute 3.25% employer and 0.75% employee shares, and audit total liability.

Portal Upload & Challan Generation

We format and upload monthly employee contribution statements onto the ESIC portal and generate verified online payment challans.

Insured Person (IP) Registration

We enroll new hires, generate individual Insurance Numbers, and download official e-Pehchan identity cards for dispensary access.

General questions

01What is the monthly contribution rate for ESIC?

The current rate is 4% of gross wages (3.25% contributed by the employer and 0.75% deducted from the employee’s salary).

02What is the wage limit for ESIC coverage?

Employees with gross monthly wages up to ₹21,000 (₹25,000 for employees with certified disabilities) are covered under the ESI Act.

03When is the monthly ESIC payment due?

The monthly contribution must be remitted on or before the 15th of the following month.

04What is an e-Pehchan card and why is it needed?

An e-Pehchan card is the digital identity card issued by ESIC to an insured person, which enables the employee and their dependents to receive cashless medical care at ESIC dispensaries and empanelled hospitals.

NEED TAX OR ADVISORY SUPPORT?

Schedule a consultation on your ITR filing, GST audit, or corporate compliance with our leadership team.

Get Directions
Chat with us on WhatsApp