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Contribution |
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Submission of Return of Contribution
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There are two contribution periods in a year. One commence on 1st April and ending on 30th Sept. The other commence on 1st October and ends on 31st March of the following year. |
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It is obligatory on the part of the employer to calculate and remit ESI Contribution comprising of employers' share 4.75% plus employees' share of 1.75% which is payable on or before 21st of the following month, to the month to which the salary relates. It the employee is drawing upto and inclusive of Rs.70/- as daily average wages, he is exempted from the payment of his share of contribution. The employer is however, has to pay his share of 4.75% of the salary paid/payable to the employees. |
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The entires pertaining to wages/salary, number of days worked and share of contributions deducted in respect of each covered employee are to be entered in Form 6 register each month. After making entries and totalling, the amount of monthly contribution to be remitted is to be worked out. |
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In regard to the case of employers who have branches/unit in more than one state, they have the option to pay contributions either at their parent Region/Sub-Region where the main factory/Establishment is situated or through their Branch Office(s)/Sales office(s) etc. in the Regions where such offices etc. are located. |
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After the end of each contribution period, sum up the columns of the six months and prepare "Return of Contribution" Make entry in the facing front of the RC having column for details of payment and this part is to be certified by the authorized signatory of the employer. |
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The Branch Office to which the particular employer is attached will be the appropriate office for the purpose of submission of Return of contributions. |
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Return of contribution is required to be submitted separately for the main Code Number and each sub-code number. It is in the interest of the employer to make compliance in respect of the sub-unit‚ branch office‚ sales office‚ registered office etc. independent of the compliance being made in respect of the main unit. The employees working the branch office/sales office‚ etc. are attached. Similarly‚ it would be convenient for the working to avail medical benefit from the nearby dispensary in the State. |
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The RC's should be prepared in quadruplicate and submitted to the appropriate Branch Office within 42 days of the expiry of the contribution period(12th May or 11th November of each year). |
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Where the employer perfers to make compliance from the parent unit‚ he may submit only one return in respect of all the branches. The single return is such cases will be accepted at the concerned Branch Office to which the parent unit is attached. Such employers are also advised to ensure that names of Branch offices to which the Return pertains should be distinctly noted in the return so as to facilitate their expeditious onward transmission to those Branch office and also to avoid undue inconvenience to their Insured Persons. |
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Such employers also may submit return of contributions in respect of each branch office/sales office separately alongwith copies of remittance challans in support of payment of contributions in respect of the employees of each branch office to the parent Br.Office. |
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