What are the penalties for non-payment or delayed payment of ESI contribution?
It is depend upon the delay of the contribution as per below slab
A.Less than TWO month 5% P.A
B.TWO To FOUR Months 10% P.A
C.FOUR TO SIX MONTHS 15% P.A
D.SIX months and Above 25% P.A on ESI contribution
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%
The employer is liable for prosecution under Section 85(a) for the first time, Whoever, having been convicted by a court of an offence punishable under the Act, commits the same offence shall, for every such subsequent offence, liable for enhanced punishment under section 85 A of the Act.