The ESI challan is the monthly payment slip for ESIC contributions, due by the 15th of the following month. The ESI return is the statement of contributions for a six-month contribution period. Between them, the challan is the filing that actually runs every month, while the status of the half-yearly return is less clear-cut than most blogs suggest.

The monthly challan

Each month the employer enters or uploads the employee-wise wages and days worked on the ESIC portal, the system computes 0.75% from the employee and 3.25% from the employer, and a challan is generated for online payment. September 2026 contributions, for instance, are due by 15 October 2026. Treat the 15th as firm, and note that contributions must be deposited even for an employee who has just left or whose wages crossed the ceiling in the period.

Late payment brings interest at 12% a year and damages. Commonly cited damages run on a scale of 5%, 10%, 15% and 25% a year by length of delay, though ESIC can reduce them. These were set under section 85B of the ESI Act, so confirm the equivalent under the new Code during the transition. On a Rs 40,000 monthly ESI liability paid one month late, 12% interest alone is about Rs 400 (12% a year is 1% a month), before damages.

The half-yearly return

The regulations provide for a return of contributions for each contribution period within 42 days of its end, which gives 11 November for April to September and 12 May for October to March. Some advisers still list it as a mandatory Form 5 task; others say ESIC stopped requiring a separate return once monthly contributions are filed online, and the portal builds it from the monthly data. We could not find a primary ESIC notice settling this, so open the returns section of your own employer login and follow what it shows. Either way, the monthly data must be right because the return is derived from it.

This is different from the PF side, where the monthly ECR works as both challan and return.

Frequently asked questions

Which wages go into the challan?

Wages as defined for ESI, for every covered employee in the month, including those who stay covered for the rest of the contribution period after crossing the ESI wage ceiling.

What if an employee had loss of pay days?

Contribution is on wages actually earned in the month, so wages reflect the pay for those days. Reconcile your payroll to the challan using payroll reconciliation habits.

Where is the payment made?

Online through the ESIC portal; the payment proof should be filed with the month’s statutory records.

Check each month’s totals with the ESI Calculator, and see the ESI overview for coverage rules.