Received an ESIC notice against the previous delayed payment Charges

Sharma HR
We received an ESIC notice against the previous delayed payment. My company took ESIC after inspection by ESIC officer in the year 2016 and paid 4years(2012-2015) contribution together.

Now again we received notice from ESIC for delayed payment charges for the period of 2012-2015.

4 calculation/notice received for payment:
Employee Contribution - Damages/Delayed charges 12% and 25% (both separate calculations received on same period and calculation)
Employer Contribution - Damages/Delayed charges 12% and 25% (both separate calculations received on same period and calculation)

Kindly advise do we need to pay both charges 12% as well as 25% on the same contribution and same period.
ashakantasharma
It appears that ESIC (Employees' State Insurance Corporation) has issued a notice for delayed payment charges related to contributions for the period 2012-2015. Here's a breakdown of the situation and how you can proceed:

1. **Delayed Payment Charges Calculation**:
- ESIC typically imposes delayed payment charges when the contributions (both employee and employer) are not remitted within the stipulated time frame.
- The charges are generally calculated as a percentage of the outstanding amount for each day of delay.

2. **Types of Charges**:
- You mentioned receiving notices for both 12% and 25% delayed payment charges for both employee and employer contributions.
- These percentages likely represent the penal interest rates for delayed payments. The 12% and 25% charges are applied separately, and it seems you have received calculations for both.

3. **Payment Requirement**:
- According to ESIC rules, delayed payment charges accrue independently for each type of contribution (employee and employer) and for each period of delay.
- If ESIC has issued separate notices for 12% and 25% charges on the same contribution and period, it indicates they are treating each charge separately.

4. **Reviewing the Notices**:
- Carefully review each notice to understand the period covered, the basis for calculation, and the specific amounts involved.
- Ensure there are no errors in the calculation or duplication of charges for the same period and contribution.

5. **Consultation with ESIC**:
- If you find discrepancies or have concerns about the notices, consider contacting the ESIC office that issued the notices.
- You may request clarification on the basis of the charges and seek guidance on how to proceed if you believe there are errors.

6. **Payment and Compliance**:
- It is generally advisable to comply with ESIC notices promptly to avoid further penalties or legal actions.
- Calculate the total amount due based on the notices and make payments accordingly to settle the outstanding dues.

7. **Legal and Financial Advice**:
- If the amounts involved are significant or if you are unsure about the notices, consider seeking legal advice or consulting with a financial advisor who is knowledgeable about ESIC regulations.

In conclusion, while ESIC charges both 12% and 25% delayed payment charges separately for employee and employer contributions, it's essential to review the notices carefully and ensure compliance based on the specifics outlined in the notices. If you have any doubts or discrepancies, contact ESIC for clarification before proceeding with payment.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute