Extension of last date for employers to file ESI contribution – Know the impact

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January 5, 2021 12:23 PM

One-time relaxation has been given to those Employers who could not file Return of ESI contribution within time.

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Keeping in view the problem being faced by the employers in filing ESI contribution for the contribution period April 2020 to September 2020 within 42 days, the government has relaxed the provisions of The Employees’ State Insurance (General) Regulations, 1950.

Accordingly, the one-time opportunity has been given to those Employers who could not file ESI contribution for the contribution period April 2020 to September 2020 within 42 days after the end of the contribution period.

The Employers are now allowed to file this contribution for the Contribution Period from 1st April 2020 to 30th September 2020, up to 15.01.2021. There will, however, not be any impact on the employees working in establishments and contributing to the ESI. The ESI benefits to the employees will continue to be provided as usual

However, the relaxation comes with conditions:

1. This one-time relaxation is limited to the contribution period ending September 2020 only and no further relaxation in limitation for other contribution period is allowed.

2. Such relaxation is not extended to other older or new contribution period.

In the case of every employee, the employer is liable to pay his own contribution and also deduct employee’s share from the wages and pay these contributions to the ESI within 15 days of the last day of the calendar month in which the contributions are due.

The ESI contribution rate for FY 2019-20 stands at 4 per cent, which includes the employer contribution of 3.25 per cent and the employee’s contribution of 0.75 per cent. The ESI contribution rate was revised downwards from July 1, 2019.

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