Steps for Employers to Make ESIC Payments Online and ensure Employee Healthcare Benefits

The employee’s state insurance scheme is a crucial social security initiative in India that provides healthcare and financial benefits to employees. Managed by the Employees’ State Insurance Corporation, this scheme ensures that eligible workers receive medical care, maternity benefits, disability support, and compensation for workplace-related injuries.

Employers must contribute to the scheme regularly to ensure that employees continue to receive uninterrupted healthcare benefits. With the availability of digital payment options, making ESIC payments online has become a simple and efficient process. This article outlines the necessary steps for employers to complete ESIC payments online and fulfil their legal and social obligations towards employees.

Understanding ESIC and its importance

What is employee’s state insurance?

The employee’s state insurance scheme was introduced under the ESI Act, 1948, to provide financial protection and medical support to employees earning up to ₹21,000 per month. The scheme covers hospitalisation, sickness benefits, maternity leave, and compensation for disabilities.

Why should employers ensure timely ESIC payment?

Making ESIC payments on time ensures that employees receive the benefits they are entitled to. Some key reasons why employers should prioritise these payments include:

• Providing employees with access to free healthcare at ESIC hospitals and dispensaries.
• Complying with labour laws to avoid penalties and legal action.
• Offering financial security to employees during maternity leave or medical emergencies.
• Supporting employees who suffer from work-related disabilities or illnesses.

Steps for making ESIC payments online

Employers must follow a structured process to complete their ESIC payments. The entire procedure involves registering the organisation, enrolling employees, calculating contributions, and making payments through the ESIC portal.

Step 1: Register on the ESIC portal

Before making payments, an employer must complete the registration process online.

1. Visit the ESIC official website at https://www.esic.gov.in.
2. Click on ‘Employer Login’ and choose ‘Sign Up’ if registering for the first time.
3. Provide business details such as company name, PAN, address, and contact information.
4. Create a user ID and password for future access.
5. Submit the registration request and wait for confirmation from the ESIC authorities.

Step 2: Register employees under the scheme

Once registered, employers must enrol their eligible employees to ensure they receive healthcare benefits.

1. Log in to the ESIC employer portal.
2. Navigate to the ‘Register New Employee’ section.
3. Enter details such as employee name, Aadhaar number, date of joining, and salary.
4. Generate a unique ESIC number for each employee.
5. Provide employees with their ESIC card, which they can use to avail of medical benefits.

Step 3: Calculate ESIC contributions

ESIC contributions are shared between employers and employees, and the calculation must be done correctly.

• Employers contribute 3.25% of the employee’s gross salary.
• Employees contribute 0.75% of their salary.

For example, if an employee earns ₹18,000 per month:

• Employer’s contribution = ₹18,000 × 3.25% = ₹585
• Employee’s contribution = ₹18,000 × 0.75% = ₹135
• Total ESIC contribution = ₹720

Employers must deduct the employee’s share from their salary and deposit the total amount before the 15th of every month.

Step 4: Make the ESIC payment online

Employers can make the ESIC payment online by following these steps:

1. Log in to the ESIC employer portal.
2. Select ‘Online Challan Generation’ and enter the details of the contribution for the given month.
3. Verify the employee-wise contributions and generate the challan.
4. Click on ‘Pay Online’ and choose the preferred payment method such as net banking, debit card, or UPI.
5. Complete the transaction and download the payment receipt for records.

Step 5: File ESIC returns

After making the payment, employers must submit their ESIC returns to maintain compliance.

1. Log in to the ESIC portal and go to ‘File Monthly Return’.
2. Upload the details of the employee contributions for the selected period.
3. Submit the return before the 15th of the following month.
4. Keep a record of the return filing for future reference and verification.

Ensuring healthcare benefits for employees

1. Providing access to ESIC hospitals

Once registered, employees can avail free medical treatment at ESIC hospitals and dispensaries across India. Employers should guide employees on how to use their ESIC card for medical care.

2. Maternity and sickness benefits

Female employees under the ESIC scheme receive paid maternity leave of up to 26 weeks. Employees suffering from prolonged illness can also claim sickness benefits, receiving a portion of their wages while on leave. Employers should educate their workforce about these benefits.

3. Disability and unemployment benefits

Employees who suffer from work-related injuries or permanent disabilities are eligible for financial support under the scheme. Those who lose their jobs due to disability can also claim unemployment benefits. Employers should assist affected employees in filing claims.

4. Regularly updating employee records

Employers must ensure that employee details are kept up to date on the ESIC portal. New employees should be added to the system within 10 days of joining, while employees who leave the organisation should be removed to prevent discrepancies.

Common mistakes employers should avoid

1. Missing ESIC payment deadlines

Employers must make their payments before the 15th of every month to avoid penalties and interest charges. Delayed payments can also result in employees losing their benefits.

2. Incorrect salary calculations

Miscalculations in an employee’s gross salary can lead to incorrect contributions. Employers should verify payroll details carefully to ensure compliance.

3. Not enrolling eligible employees

Employers must register all eligible employees under the ESIC scheme. Failure to do so may lead to penalties and the risk of employees being denied healthcare benefits.

Conclusion

Making ESIC payments online is an essential responsibility for employers to ensure that employees receive uninterrupted healthcare and financial support. By following the correct steps, including employer registration, employee enrolment, accurate contribution calculation, and timely payments, organisations can remain compliant with labour laws and support employee wellbeing.

The employee’s state insurance scheme plays a crucial role in providing medical care, maternity support, and financial assistance to employees during times of need. Employers should stay proactive in educating their workforce about ESIC benefits while ensuring timely payments and proper record-keeping. A well-managed ESIC process helps build a healthier and more secure workforce, ultimately benefiting both employees and businesses.