ESIC Payment Dilemma: Do We Owe Contributions for the Covid Closure Period?

ESIC Payment

We have a small restaurant in Ahmedabad. We have 8 employees registered with ESIC. Till November 2019 (Pre-Covid), we had paid ESIC contributions for all 8 employees regularly. During the Covid period, the restaurant remained closed from January 2020 to May 2021 (for 18 months), and no contributions were made during the mentioned period.

From June 2021, the restaurant recommenced, but from June 2021 till date, the ESIC contributions have not been made. Now we are receiving reminder messages for payment of ESIC.

Queries:

1. Do we have to pay ESIC for the Covid period when the restaurant was closed entirely?
2. How do we know the exact outstanding amount of ESIC?
3. How to clear all the outstanding and make it zero?

What will be the way forward? Please guide us for the same.

Thanks,

Vimal
Location: Ahmedabad, India
Tags: ESIC contribution, Country-India, City-India-Ahmedabad

ESIC Payment During Closed Period

Considering the specific circumstances of the Covid-19 period when your restaurant was closed, here is some guidance:

1. [Icon indicating importance] Payment during Covid Period:
- As per ESIC regulations, ESIC contributions are mandatory even if the establishment is temporarily closed. Therefore, you are required to pay ESIC contributions for the Covid period when the restaurant was closed entirely. Failure to pay contributions may result in penalties and legal consequences.

2. [Icon indicating information] Determining outstanding amount:
- To calculate the exact outstanding amount, you can contact your ESIC office or log in to the ESIC online portal using your establishment's credentials. The portal will provide details of pending contributions, including penalties if any.

3. [Icon indicating action] Clearing outstanding dues:
- To clear the outstanding amount and bring it to zero:
1. Calculate the total outstanding amount by reviewing past contribution records and any penalties accrued.
2. Make the payment through the designated ESIC portal or by visiting the nearest ESIC office.
3. Obtain a receipt or confirmation of payment for your records.

4. [Icon indicating next steps] Way forward:
- It is advisable to promptly clear all outstanding ESIC dues to avoid further penalties or legal implications. Regularize contributions moving forward to ensure compliance with ESIC regulations and avoid future issues.

By following these steps and ensuring timely contributions, you can fulfill your ESIC obligations and maintain compliance with labor laws.