Penalty for non-payment or late payment of ESI contributions
An employer who fails to pay the contribution within the
limit prescribed under Regulation 31, 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 under
Regulation 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%
|
Also, non-payments, delayed or false payments under the ESI
Act may attract imprisonment for a period extending up to 2 years and fine up
to Rs.5,000.