Understanding UAN, ESIC Number, and Challan Submission in Simple Terms

Artificial Intelligence Generated Content ESI & EPF

Published by: OurTaxPartner.com | Explore Our ESI & EPF Compliance Services

Introduction

If you’re a business owner or HR manager handling payroll in India, you’ve likely heard terms like UAN, ESIC Number, and Challan Submission. These are essential components of employee compliance under the Employees’ Provident Fund (EPF) and Employees’ State Insurance (ESI) schemes.

This blog breaks down these terms in simple, easy-to-understand language so that even non-finance professionals can stay on top of their company’s legal obligations. If you’re looking for professional support with EPF/ESI filings, OurTaxPartner.com is here to help.

What is UAN?

UAN stands for Universal Account Number. It is a 12-digit unique number issued to every employee who is enrolled under the EPF scheme. UAN is assigned by the Employees’ Provident Fund Organisation (EPFO) and remains the same throughout the career of an employee, even if they change jobs.

Why UAN is Important

  • Keeps track of all your PF accounts across different employers
  • Required for PF withdrawals, transfers, and KYC linking
  • Helps employees manage their PF account online

How Employers Use UAN

  • Generate UANs for new employees via the EPFO portal
  • Link Aadhaar, PAN, and bank details with UAN
  • Include UAN in the monthly ECR (Electronic Challan-cum-Return)

Tip: Never create duplicate UANs. Use UAN transfer facility if an employee already has one.

What is ESIC Number?

The ESIC Number is a unique 10-digit Insurance Number provided to employees who are covered under the Employees’ State Insurance (ESI) scheme. It is generated when the employee is first registered with the Employees’ State Insurance Corporation (ESIC)

Why ESIC Number is Important

  • Allows employees to access medical benefits under the ESI scheme
  • Required for claiming maternity, sickness, or disability benefits
  • Used for tracking contribution history in the ESIC portal

How Employers Use the ESIC Number

  • Register new employees on the ESIC portal
  • Generate and record the ESIC number/IP (Insured Person) number
  • Use it every month while filing ESI returns

Note: The ESIC number remains the same for the employee, even if they switch companies.

What is Challan Submission?

A Challan is a government receipt or proof of payment. In the context of EPF and ESI, it refers to the online process of submitting the total monthly contribution to the respective portals.

EPF Challan Submission

  • Generate the ECR (Electronic Challan-cum-Return) file with employee contributions
  • Upload the ECR file to the EPFO portal
  • System generates a Challan with a TRRN (Temporary Return Reference Number)
  • Make payment using online banking or debit card
  • Save the UTR (Unique Transaction Reference) number as proof

ESI Challan Submission

  • Log in to the ESIC employer portal
  • Enter gross wages and generate contribution details
  • System calculates employer and employee share
  • Submit and generate the Challan
  • Pay online and download payment confirmation

Reminder: Both EPF and ESI challans must be paid on or before the 15th of every month to avoid penalties.

Why These Elements Matter for Compliance

Understanding UAN, ESIC numbers, and Challan submissions ensures that:

  • Your employees get their rightful benefits like PF withdrawal, pension, medical coverage, etc.
  • You avoid penalties, interest, and legal complications from the EPFO or ESIC
  • You stay audit-ready with complete compliance records

Common Mistakes to Avoid

  • ❌ Forgetting to generate UAN for new employees
  • ❌ Duplicate UANs or IP numbers
  • ❌ Delayed Challan payment leading to penalties
  • ❌ Wrong wage entry or incorrect contribution calculations

How OurTaxPartner.com Can Help

  • ✔ Generate UANs and ESIC numbers for your workforce
  • ✔ Link Aadhaar, PAN, and bank accounts for KYC compliance
  • ✔ Monthly Challan generation and payment support
  • ✔ Timely return filing to avoid penalties
  • ✔ Support with UAN transfers, IP migration, and portal issues

Click here to simplify your ESI & EPF filings with OurTaxPartner.com.

Frequently Asked Questions (FAQs)

Can an employee have two UANs?

No. Each employee must have only one UAN. If issued multiple UANs by mistake, they should be merged.

Is the ESIC number valid for life?

Yes, the ESIC IP number remains the same across jobs and employers.

What happens if I don’t submit the Challan on time?

You will be liable to pay interest (12% per annum) and penalties. It may also affect employee benefits.

Can I outsource UAN, ESIC, and Challan processes?

Yes! You can delegate the entire process to professionals like OurTaxPartner.com for hassle-free compliance.

Conclusion

UAN, ESIC numbers, and Challan submissions may seem technical at first, but they are essential pillars of HR compliance in India. By understanding their purpose and managing them efficiently, you protect your business and empower your employees.

Don’t take chances with government filings. Let OurTaxPartner.com manage your compliance with precision and care.

Quick Link: Get Help with UAN, ESIC, and Challan Filings

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