written by | April 14, 2022

How to Make ESIC Payment Online and Its Deadline

Employees' State Insurance Corporation is a government apex agency created by the ESI Act of 1948. ESIC is in charge of regulating the ESI program in India. The ESI Plan is a social insurance scheme designed to protect workers from financial problems caused by impairment, illness, or death resulting from workplace accidents. The Medical Benefit Council is in charge of putting the health coverage provided by the ESIC programs into action.The ESIC plan strives to give appropriate financial aid to employees who are dealing with serious health difficulties. Employees' salaries are frequently lost due to their poor health, which can cause serious financial issues in the future. The ESIC plan alleviates such difficulties by giving full financial aid to impacted employees.

Did you know?

If an employer fails to make the appropriate contributions to ESIC for a worker, the employer is responsible for paying a basic interest rate of 12% annually for all the days that contribution is delayed or not made.

ESIC Payment Online

Employee State Insurance (ESI) is handled by the Employee State Insurance Corporation, an independent institution within India's Department of Labour and Employment. The ESI program was developed for Indian employees. Employees are eligible for a variety of medical, financial, and other advantages under the ESI Act as a consequence of compulsory contribution towards the ESI program by both the company and the employee.

ESIC Monthly Contribution Rate

The employee contribution rate is 0.75% of earnings, while the employer contribution rate is 3.25% of salaries regarding employees in each salary period. For recently introduced areas/firms, the contribution limit is 1% of employee earnings and 3% payee by companies for the first two years. Employees receiving an estimated daily remuneration of approximately ₹176 are excused from contributing. Employers, on the other hand, will pay their good proportion in the case of these workers.

The firms which have to give the ESIC registration are:

  • Private educational centres  
  • Private Medical Facility
  • Hotels and eateries which are in selling
  • Stores
  • Cinemas on the road are a type of establishment that specialises in the transportation of people.
  • Newspaper establishments are not protected by the Factory Act. 

If the organisation, as mentioned above, has more than ten workers at the period, the organisation must register with Employee State Insurance Corporation.

Also Read: ESI Calculation - How is ESI Computed?

Advantages of ESIC Registration

  • Medical coverage is available to employees and also to family members.
  • In the case of a documented illness enduring no more than 91 days in any fiscal year, an illness payment of 70% (in the format of a salary) is provided.
  • Whenever an employee dies in the workplace, his family gets 90% of the salary in a monthly payment following his death.
  • Pregnancy advantages for pregnant women.
  • Funeral costs.
  • The expenses of senior medical care.

Monthly Contribution Filing

Employers are required to pay ESIC e-challan payments for each employee to subtract employee contributions from earnings. And make these payments at the rates set by ESIC within the 15th of each month else contributions become due.

Due Date for Payment of Monthly Contribution

  • In case the ESIC monthly amount owing for a certain month is ₹1000 and the company uses an offline system that is capable of regenerating challan for the contribution, the company cannot create an online payout towards the similar even though the prior challan is not withdrawn or illusory.
  • If a company issues an offline computer challan for payments towards ₹700 that is not released; therefore, the company can perform electronic contribution towards only the outstanding balance, i.e. ₹300.
  • The employer has begun an online transaction of ₹200 for a sum of ₹1000 in outstanding invoices. If the payment fails, the company cannot change the challan amount throughout dual online validation.

Procedure for ESIC Online Payment of Monthly Contribution

The following steps will walk you through the process of paying your monthly donation online:

Step 1: Sign in to the ESIC site with the username and password you set during registering.

Step 2: Following a successful login, the above-depicted website will be presented, with hyperlinks beneath each module that lead to particular sections.

Step 3: By using the "Online Monthly Donation Window," the customer may file the monthly payment.

Step 4: When you select this option, the "preview" screen will open.

Step 5: To submit the information of your monthly donation to ESIC, press the "Submit" option.

Step 6: The company may either individually enter the contribution for each employee or mass submit an excel spreadsheet as an attachment. It is very useful when you have bulk data.

Step 7: After submitting the form, the customer may make the monthly challan online payment using their chosen bank's online banking services by selecting the online payment service.

Step 8: To continue with the payment processing, press the "ok" button.

Step 9: Make a note of the challan identifier for later use. To continue with the transaction, press the continue button; this will take you to the SBI bank's online payment website.

Step 10: When you advance with the payments, you will see the specific banking site in which you will make an online payment. To make the payment, the customer must submit their net banking credentials.

Step 11: If the customer made a monthly donation through SBI, the portal would show a confirmation message. 

How To Generate Challan Online

To produce the challan online, complete the procedures listed below.

Step 12: After logging in to the site, press the “create challan” link option. Then you can see the new page, where you may hit the “view” icon.

Step 13: Choose the records of the employers' for which you have to pay, and enter the amount customers wish to pay.

Step 14: Choose the online icon and press the submit key. A pop-up window will appear, and the client should press the OK button.

Reprinting or Cross-Checking of the Successful Transaction

Verify the Payment

Follow the procedures outlined below to reproduce or cross-check the successful transaction.

Step 15: Click the last icon on the right side, which says online challan double verification.

Step 16: The challan screen will be double-verified. Now enter the employer's unique code and challan code into the text field and press the submit button.

Step 17: Hit the print button to obtain the successful page.

Also Read: Know About GST On Labour Charges In India

Processing a Failed Transaction

The following is a detailed explanation of processing a rejected ESIC monthly contribution payment. The transaction may fail for the reasons listed:

  • Due to network difficulties, the transaction fails.
  • Due to the lack of funds
  • The user has forgotten his or her login username and password.
  • The ESIC website's failure to navigate to the digital SBI payment gateway
  • Because of the link problem, the transaction was unable to be completed.

You can process the unsuccessful transaction by pressing the online challan double verification link. 

Input the challan number in the text field and press the submit icon to proceed with the unsuccessful transaction. 

You can now see the challan number and amount, and the customer must pay fees by pressing the make payment button to link to the relevant bank's net banking. You have the option to pay.

Deadline

The deadline to make the ESIC contribution each month is the 15th. Always ensure that you make your payments on time to avoid any penalties or late fees. 

Conclusion

ESIC is a multi-faceted plan that offers employees economic security from illness, debilitation, and death as a result of workplace harm. Employees and employers are required to contribute the specified sum on the specified due date underneath this program. There would be penalty charges if the contribution were not submitted on time. Employers can use the ESIC site to make their contribution payments in a punctual and hassle-free way.
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FAQs

Q: What exactly is a sub-code number?

Ans:

It is a unique identification number assigned to a cover company or establishment's sub-unit, local branch, sales department, or registered headquarters, whether situated in the same or another state.

Q: Is it necessary for the company to sign up for the ESIC?

Ans:

Yes, it is the company's legal requirement, as per Section 2A of the Act and Regulation 10-B, to enrol their production plant underneath the ESI Act before fifteen days of application.

Q: What are the qualifying requirements for ESI benefits?

Ans:

To be qualified for the ESI plan, the employee's or workers' monthly payment has to be less than ₹21,000 for non-disabled persons and ₹25000 for disabled persons.

Q: What is the ESI Code number?

Ans:

Every worker who is registered at the ESCI plant or institution is granted a unique 17-number identification number known as the ESI code number. This number is produced once the employer enters their employee's information onto the ESIC portal.

Q: What is the consequence of avoiding paying an employee's salary portion on time?

Ans:

Whenever a company that is enrolled with ESIC misses making the appropriate contributions to a worker's ESIC, the company is responsible for paying a simple interest rate of 12% annually for all the days the payment is delayed or not made.

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