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Enhancement of the Limit for Non-claiming of Interest for delayed payment of contribution- Regarding


Contents News/Article Date: 31st October 2023 

Relating to which Act: The Employees’ State Insurance (ESI) Act, 1948          

Penalty under the Act: Section 85(a):  Penalty for failure to pay contribution

Non-payment of this contribution is a serious offense because it directly affects insurable employees. Hence, the maximum imprisonment for this offense is 3 years and the minimum is 6 months with Rs. 5,000 as fine.

Applicable to which State: All the States and Establishments covered by the ESI Act

Type: ESIC Circular No. P – 11 / 14 / Pending Legal Cases / 2023 / Rev II issued by Assistant Director Revenue. 

Pertains to: Claiming interest and recovery for delayed contributions

Relevance of this news: Karma Global is in the business of HR Services, Payroll, Outsourcing and Regulatory Compliances right from its inception in 2004 and since then, has brought in a lot of efficiencies and technological upgradations with experts on its roll, to ease the hassles of Payroll Processing, Temp Staffing, On-boarding, Employee Life Cycle, Statutory, Regulatory and Payroll compliances by providing customized solutions to all its elite clients.

Karma Global does excellent work on providing ESI Services both to establishments as well as Insured Employees and in this respect, it will inform all its clients and insured employees about the many announcements that the Government has made in terms of expansion of ESI Scheme, so as to make it available in the remotest of places viz. 778 districts and also to make health facilities and medical colleges in progressive districts of our country further expanding post graduate medical seats.

And in this instance: I am directed to state that Hqrs office vide Memorandum No. T [1] 11/113/8/2001-Ins.III dated 4-9-2003 issued instructions advising the field offices not to claim interest if the amount of interest for a contribution period is Rs. 100/- or less. In this regard, it is informed that considering the enhancement of the wage ceiling over the years, the administrative inconvenience and cost in the process of claiming interest and recovery, the matter has been examined at Hqrs Office and it has been decided that the interest payable due to delayed payment of contribution for any reason in any contribution period (taken as a whole), which does not exceed Rs. 300/- may not be claimed

Subject: Enhancement of the Limit for Non-claiming of Interest for delayed payment of contribution- Regarding


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