What is ESIC return filing?
ESIC return filing is the monthly reporting and payment of Employees' State Insurance contributions for every covered employee. Each month you declare each insured person's wages and days worked on the ESIC employer portal, generate the challan and pay it.
The money funds medical care and cash benefits for your employees and their families: sickness, maternity, disablement and dependants' benefits. An employee's entitlement depends on contributions paid for them, so a missed month affects your staff, not only your compliance record.
In everyday use, "ESIC return" covers two things:
- The monthly contribution filing and payment, due by the 15th of the following month.
- The half-yearly return of contributions for each six-month contribution period, most of which the portal builds from your monthly filings.
Who must file ESIC returns?
Every employer whose establishment is covered by ESIC must file for its eligible employees. The long-standing rule covers establishments with 10 or more persons (20 in some states and sectors), and employees earning up to ₹21,000 a month.
Coverage applies to the establishment as a whole. Once covered, you enrol every eligible employee on the payroll, including casual, part-time and contract workers who meet the wage limit. A principal employer remains answerable for contract workers deployed at its premises if the contractor does not pay. For the wider position, see principal employer liability for contract workers.
What changed under the Code on Social Security, 2020
The ESI Act, 1948 was one of the 29 labour laws subsumed into the four Labour Codes, which took effect on 21 November 2025. ESIC now works under the Code on Social Security, 2020.
The Government's summary of the Codes lists three changes for ESIC:
- ESIC coverage extends across India, not only to notified areas.
- Coverage is voluntary for establishments with fewer than 10 employees.
- Coverage is mandatory for an establishment with even one employee in a hazardous process.
The monthly cycle, the rates and the portal have not changed. If you are unsure whether the new coverage rules bring your business in, we check it before registration through ESIC registration.
ESIC contribution rates and wage limit
The employer pays 3.25% and the employee 0.75% of wages, a total of 4%. These rates have applied since 1 July 2019.
| Item | Rule |
|---|---|
| Employer's contribution | 3.25% of wages |
| Employee's contribution | 0.75% of wages, deducted from salary |
| Wage limit for coverage | ₹21,000 a month; ₹25,000 for persons with disability |
| Low-wage exemption | Employees with average daily wages up to ₹176 pay no employee share; the employer still pays its 3.25% |
| Wage base | Wages as defined in the law, not basic pay alone |
Contribution is calculated on the full wage, including allowances that form part of wages. Calculating on basic pay alone is the most common cause of short payment.
Worked example
An establishment has 20 covered employees, each earning ₹18,000 a month. Total wages are ₹3,60,000.
| Share | Calculation | Amount |
|---|---|---|
| Employer (3.25%) | ₹3,60,000 × 3.25% | ₹11,700 |
| Employee (0.75%) | ₹3,60,000 × 0.75% | ₹2,700 |
| Total monthly contribution | ₹14,400 |
If this ₹14,400 is paid 30 days late, simple interest at 12% a year adds about ₹142, before any damages.
ESIC due date and contribution periods
ESIC contributions are due within 15 days of the last day of the calendar month. September's contribution is due by 15 October 2026, October's by 15 November 2026.
The year is split into two contribution periods, each followed by a benefit period that starts three months later.
| Contribution period | Corresponding benefit period |
|---|---|
| 1 April to 30 September | 1 January to 30 June of the next year |
| 1 October to 31 March | 1 July to 31 December |
There is no grace period. A payment made on the 16th is late, and interest runs from the due date.
The half-yearly return of contributions
The half-yearly return of contributions covers each six-month contribution period. On the ESIC portal it is built largely from the monthly contributions you have already filed, so the real work is making sure every month is complete and correct.
Practice varies on how much is uploaded separately, and the dates quoted by different sources do not agree. We do not rely on a single date: after each period we reconcile the monthly filings with your wage register, close gaps before the period ends, and keep a half-yearly record in the prescribed format for inspection.
Interest and damages for late ESIC payment
Late contributions carry simple interest at 12% a year from the due date until payment. ESIC can also levy damages, which rise with the length of the delay, up to 25% a year where the delay exceeds six months.
| Consequence | What it means |
|---|---|
| Interest | 12% a year, simple, for every day of delay |
| Damages | A sliding scale that increases with the delay, up to 25% a year beyond six months |
| Recovery | Unpaid dues can be recovered from the employer, including the employee's share that was deducted |
| Benefits | Employees can face problems claiming benefits if contributions for them are missing |
Interest and damages are paid to ESIC. They are not professional fees and are shown separately on our invoices only when you ask us to pay on your behalf.
If you have arrears, pay them as soon as the amount is known. Interest stops running on the day you pay; damages keep growing with time.
ESIC vs EPF: how the two filings differ
Both are monthly payroll filings due by the 15th, but the thresholds, rates and wage base differ. Many employers are covered by one and not the other.
| Parameter | ESIC | EPF |
|---|---|---|
| Law | Code on Social Security, 2020 | Code on Social Security, 2020, with the EPF Scheme, 2026 |
| Coverage threshold | 10 or more employees (voluntary below 10; 1 employee in a hazardous process) | 20 or more employees |
| Who is covered | Employees earning up to ₹21,000 a month (₹25,000 with disability) | EPF wage ceiling ₹25,000 a month from 17 September 2026 (₹15,000 before) |
| Employer rate | 3.25% of wages | 12% (8.33% to pension, 3.67% to PF), plus EDLI and admin charges |
| Employee rate | 0.75% of wages | 12% |
| Monthly filing | Contribution on the ESIC portal by the 15th | ECR on the EPFO portal within 15 days of the month's end |
| Benefit | Medical care and cash benefits | Retirement savings, pension and insurance |
For PF filing, see EPF return filing. If you are not yet registered, see PF registration.
Common ESIC filing mistakes
These are the errors we fix most often when we take over a payroll.
- Wrong wage base. Contribution calculated on basic pay instead of wages, which leaves a shortfall for every month.
- Missing contract workers. Workers supplied by a contractor are not enrolled, and the principal employer carries the risk.
- Stopping mid-period. An employee's wages rise above ₹21,000 and deductions stop straight away; check how coverage continues until the end of the contribution period before stopping.
- One code for many states. Branches in other states need their own coverage under the right ESIC office.
- Late joiners. New employees not registered before their first contribution, so their month is missed.
- No reconciliation. Challans paid but not matched to the wage register, so errors surface only at inspection.
Our ESIC return filing fee
We charge a fixed monthly professional fee. There is no government fee to file; the contribution itself is paid to ESIC.
| Item | Amount |
|---|---|
| Professional fee: monthly ESIC contribution filing | From ₹999 a month |
| Government fee | No government fee |
| ESIC contribution | Paid by you to ESIC: 3.25% employer and 0.75% employee share; not a fee |
| Interest or damages | Only if a payment is late; paid to ESIC |
Professional fees exclude GST at 18%. Government fees, where they apply, are paid at actuals to the department and are shown separately. Fees verified on 21 September 2026.
The monthly fee covers contribution computation, portal filing, the challan, and a reconciliation note. For large headcounts, several states or clearing arrears, we confirm the fee in writing before starting.
How our monthly ESIC filing works
We run the same cycle every month so nothing depends on memory.
- Payroll in. You send the month's payroll and joiner and leaver details after salaries are finalised.
- Coverage check. We confirm who is within the wage limit and register new joiners on the portal.
- Computation. Employer and employee shares on the correct wage base, employee by employee.
- Filing and challan. We file the monthly contribution and generate the challan for you to pay, or pay through your net banking with your approval.
- Reconciliation. We match the challan to payroll and send a short note of what was filed and paid.
- Half-yearly close. After each contribution period we reconcile the six months and keep the record ready for inspection.
Documents and inputs we need
Once, at the start
- ESIC employer code and portal access (shared securely, never by chat)
- PAN of the establishment and addresses of all premises
- List of employees with insured person (IP) numbers
- Contractor list, if contract workers are deployed
Every month
- Payroll register showing wages and days worked for each employee
- Joiners with Aadhaar, date of birth, bank and family details for registration
- Leavers and their last working day
- Contractor's ESIC challan for workers deployed at your site
Why Regikart for ESIC filing
A Chartered Accountant reviews every monthly filing before it goes in. We work from Kolkata (head office), Delhi and Bengaluru and serve 250+ clients across India.
- One team for payroll compliance. ESIC, PF, professional tax returns and TDS on salaries handled together, so the wage figures agree across filings.
- Current law. Filings reflect the Code on Social Security, 2020 and the EPF Scheme, 2026.
- Written scope and fee before we start, with the monthly calendar shared on day one.
If you want the whole payroll run by us, see payroll services. For the wider employer picture, see labour law compliance.