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ESI Provisions and Return Filing Guide (2025–2026) Updated on 25th March 2026
- Applicability
Applicable to establishments with 10 or more employees.
Employees earning up to n21,000 per month (n25,000 for disabled). - Contribution Rates
Employer: 3.25%
Employee: 0.75% - Wage Definition
Wages include Basic + DA + Retaining Allowance.
HRA and bonuses are generally excluded. - Due Date
ESI contribution must be paid by the 15th of the following month. - Return Filing
Monthly contribution filing is mandatory.
Half-yearly returns:
- April to September: Due by 11 November
- October to March: Due by 12 May
- Filing Process
- Login to ESIC portal using Employer Code.
- Update employee details.
- Calculate contributions.
- Generate challan.
- Make payment.
- File monthly and half-yearly returns.
- Important Forms
Form Purpose
Form 1 Registration
Form 5 Half-yearly return
Form 6 Employee register
Form 12 Accident report - Key Compliance Points
- File NIL return if no employees.
- Maintain payroll and attendance records.
- Late payments attract interest and penalties.
- Example Calculation
For salary =18,000:
Employee contribution = n135
Employer contribution = n585
Provident Fund (EPF) Guide 2025–2026 – Updated on March 25, 2026
- Applicability
Applicable to establishments with 20 or more employees.
Mandatory for employees earning up to n15,000 (Basic + DA). - Contribution Structure
Employee: 12% of Basic + DA
Employer: 12% of Basic + DA - Employer Contribution Breakup
Component Percentage
EPF 3.67%
EPS 8.33% (up to n15,000)
EDLI 0.5% approx
Wage Ceiling
15,000 per month (no official change yet).
Interest Rate
8.25% per annum (FY 2025–26).
Due Date
PF must be paid by the 15th of the following month.
Filing Process
Prepare payroll.
Calculate PF.
Generate ECR.
Upload on EPFO portal.
Make payment.
Important Forms
Form Purpose
Form 11 Declaration
Form 2 Nomination
Form 19 Final settlement
Form 10C Pension withdrawal
Form 31 Partial withdrawal
Key Compliance Points
PF is calculated on Basic + DA only.
UAN and KYC must be updated.
File NIL return if no employees.
Example
Salary =15,000:
Employee PF = 1,800
Employer PF = 1,800 (EPF 550, EPS 1,250)
Gratuity Provisions Guide (FY 2025–2026) Updated on 25th March 2026
Applicability
Applicable to establishments with 10 or more employees.
Eligibility
5 years continuous service required.
Exception: No minimum service in case of death or disability.
Fixed-term employees eligible after 1 year (pro-rata basis).
When Payable
Retirement, resignation, superannuation, death, or disability.
Calculation Formula
Gratuity = Last Drawn Salary × 15/26 × Years of Service
Salary includes Basic + DA.
Maximum Limit
n20 lakh (tax exemption limit).
Payment Rules
Must be paid within 30 days.
Delay attracts interest.
Special Cases
Case Provision
Fixed-term employees Eligible after 1 year
Seasonal employees 7 days wages per season
Death case Paid to nominee/legal heir
Example
Salary n30,000, Service 10 years:
Gratuity » n1,73,077
Key Points
Maintain proper service and salary records.
Applicable even if employee does not apply.
Follow new wage definition under labour codes.
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