Facing Penalties for Late ESI Contributions? Here's How to Handle It

Dear Sir/Madam,

We are in Healthcare Services, and we got registered in June 2011 under ESIC. Currently, we are facing issues with the submission of contributions. We need to submit a balancing amount for April 2011, May 2011, and June 2011 as a supplementary challan. However, my query pertains to the penalty for late submission of the challan.

How can we submit the penalty?
What is the process for submitting the penalty amount?
What is the rate of interest?

Thank you.

For complete details, you have to visit your nearest ESI office. They will provide you with all the necessary information. I believe there is no need for a penalty if you get covered in the middle of the contribution period. The question remains why.

Regards,
Sandeep

Dear Fortis,

From your query, it is not clear from which angle you are facing a problem with ESI payment. Is the problem with your internal processes, or are you facing a problem with the ESI portal or any processes of ESIC?

If you are facing any problem with the latter, then you should have sent a written communication to the concerned (web reply/letter to ESI Local Office, ESI Sub-Regional Office, or ESI Regional Office of your State) intimating the difficulty. That would have given you the edge in defending the penal/delayed interest that you are speaking of. Maybe you need not require to pay the penalty in that case.

If there are no issues from the ESI portal or their processes, and the problem is due to your internal processes, you better approach the ESI Sub-Regional/Regional Office and intimate the delay. The more the delay in paying the arrears, the more will be the penalty.

Regards, Amit Lingayat

To visit "Maverick's HR Euphoria" - my HR blog, refer to my profile.

In that case, he should approach the ESIC and inform them of the delay, as I mentioned in my earlier post.

Best Regards,
Amit Lingayat

I think there is no need for a penalty because ESTB coverage is until June. You can do one thing: submit RC from April to September, and after that, past RC.

Thank you very much, my seniors.

Sir/Madam,

The problem is, we received a registered number in June, but we have been making payments since April. However, in the months of April '11, May '11, June '11, and July '11, some employees were not registered in ESI, which is why we have not deposited the contributions. In short, we have only submitted partial contributions.

For example, the total number of ESI-eligible employees is 200, but contributions have only been deposited for 150 employees. Therefore, we need to submit the partial amount for ESI return purposes.

Looking for exceptional help...

Thanks,
Rajeev

Dear Mr. Rajeev,

As you have mentioned, there were 200 eligible employees for ESI, and you had deposited the contribution for only 150 employees. In that case, you have delayed the contribution of 50 employees; hence, you need to pay it ASAP as a supplementary challan.

Best Regards,
Amit Lingayat