Thank you for your response
Our representative will get in touch with you shortly.
Employees State Insurance Corporation (ESIC) of India is a significant multifaceted social system designed to provide socio-economic security to workers and their dependents. The system ensures that the workers and his family do not suffer in case of unseen, unfortunate circumstances.
An employer who is eligible to be registered as per the Employee State Insurance Act 1948 (“Act”) must do so by abiding by the following steps:
On successful registration of the establishment, returns can be filed online by the employer. To file ESI returns online, the employer must follow the below-mentioned procedure:
Amount deducted from employee’s wages as an employee contribution is deemed to have been entrusted to the employer. Therefore the employer has a higher responsibility to deposit the contribution with ESI.
Non-payment or delayed payment of the Employee’s contribution deducted from the wages of the employee amounts to ‘Criminal Breach of trust’ is punishable under IPC Section(s) 406, 409 and also an offence u/s 85 (b – g) of ESI Act.
Non-payments, delayed payments, or falsifying payments under ESI Act may attract imprisonment for a period extending up to 2 years and a fine of up to Rs 5,000.
An employer who fails to pay the contribution within the limit specified in the regulation shall be liable to pay simple interest at the rate of 12% per annum in respect of each day of delay or default in payment of contribution.
The Corporation may levy and recover damages as per the Regulations, 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.|
|Less than 2 months||5%|
|2 to 4 months||10%|
|4 to 6 months||15%|
|6 months and above||25%|
The employer is liable for prosecution under Section 85(a) for the first time, and if the employer repeats the offence, he will be liable for enhanced punishment for every repetition. The ESI has been established for the benefit and betterment of workers, and the employer must ensure that the purpose is served.
Disclaimer:The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice and should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state.