ESIC relaxes norms in consideration of the impact of pandemic - Corona virus, and resultant impact on working of most businesses. The ESI contribution for the month of February, 2020 & March 2020 can be filed & paid up to 15th April, 2020 & 15th May 2020 instead of 15th March, 2020 & 15th April, 2020 respectively.
Employee State Insurance Act provides a mechanism to ensure certain benefits to employees at workplaces covered under the act. These may be applicable in case of sickness, maternity and employment injury involving personal injury caused by accident, or occupational diseases in course of employment.
As per the The Employees State Insurance (General) Regulations, 1950, regulation 31, any employer registered with ESIC is liable to pay contributions in respect of their employees within 15 days of the last day of the calendar month in which the contributions falls due. In case the employer fails to pay the relevant contribution within the period specified they are liable to pay simple interest at the rate of 12 per cent. per annum in respect of each day of default or delay in payment of contribution.
ESIC relaxes timelines for payment of contribution
Keeping in consideration the impact of pandemic – Corona virus, and resultant impact on working of most businesses, the ESIC has relaxed the provisions as in the regulations 26, and 31 of the The Employees State Insurance (General) Regulations, 1950. As per the recent announcement / circular issued on 16th March 2020, the Employee State Insurance Corporation (ESIC), has relaxed the time frame for contribution payable by 30 days.
The statement reads – ” The provisio of regulation 31 shall be read as 45 days instead of 15 days for the contribution payable for the month of February & March, 2020 only.”
“The ESI contribution for the month of February, 2020 & March 2020 can be filed & paid up to 15th April, 2020 & 15th May 2020 instead of 15th March, 2020 & 15th April, 2020 respectively. “
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