In case the aforementioned problem alarmed for a particular establishment
who have financial crisis due to certain reasons and said establishment not able
to pay wages to its employees for 3-4 months and also failed to pay ESI
contribution towards authority, then in that situation said establishment
cannot take a stand of “due to non-payment of salary to employees, said
establishment will not be liable to pay ESI contribution”.
To explain above in detail, it can be added that ESI
contribution will still payable, as the contribution is need to be paid on the
salary paid or payable to employees.
If there is a delay in payment of contribution from said
establishment then in that scenario said establishment will be liable to pay
interest and damages for the period of delay.
The interest is 12% per annum (w.e.f. 1-10-2005 ) and the damages will be
If delay is less than 2 months - 5% per annum
If delay is for 2 months & above but less than 4 months - 10% per annum
If delay is for 4 months & above but less than 6 months - 15% per annum
If delay is more than 6 months - 25% per annum
Hope this small write up will give insight about pertained
subject.
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