Esic non payment

What is the penalty for the ESI non payment or late payment by an employer , due to this does employee can suffer to avail benefits?

Hi Sagar,

ESI non payment within the due date then charges will be:

|ESI Delay Charges on Contribution|||

Late in Months Damages Interest
10 25% 10%
9 25% 10%
8 25% 10%
7 25% 10%
6 15% 10%
5 15% 10%
4 10% 10%
3 10% 10%
2 10% 10%
1 10% 10%

Yes, employees benefits will be disturbed if you don’t pay the contribution for a long time.

Regards
Arpana

The Corporation may levy and recover damages under Reg. 31C at the following rates, not exceeding the amount of contribution payable for default or delay in payment of the contribution.

Period of delay Rate of damages in % p.a.
i) Less than 2 months 5%
ii) 2 to 4 months 10%
iii) 4 to 6 months 15%
iv) 6 months and above 25%
Powered by | India's No.1 Payroll and HR Software.
9000+ Clients
150 Cities
10 Lakh+ Users