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Section 2(9) of ESI Act determines different categories of employees like monthly
rated employees on regular basis and they are paid a monthly salary/wages, other
are daily rated employees and piece rated employees as under :-
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The amount of wages (excluding remuneration for overtime)
fixed by the employer as monthly rate be reckoned as the wages for a month.
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- Other category of daily rated and piece rated
employees (including Bidi workers engaged against category (a) Above.
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The amount of total wages paid/ payable(excluding
overtime) during the month is reckoned as wages for the month.
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THE LIMIT FOR MAKING PAYMENT OF CONTRIBUTION
ESI Corporation has authorized the designated branches of State
Bank Of India and other scheduled Banks to receive the payment of behalf of the
Corporation. The total amount of Contribution(employees' share and employers' share)
is to be deposited with the authorized bank branches in cash or by cheque or by
demand draft through challan in the prescribed from in quadruplicate on or before
the 21st of following the calendar month in which the wages fall due. If the last
day of the deposit is a holiday, the contribution may be deposited on the day following
all the details as per the columns provided therein. The rubber stamp showing the
name and the code no. of the employer should be affixed on the challan at appropriate
place to avoid misplacement of credit.
"WHEN A PERSON BECOMES AN EMPLOYEE
WITHIN THE MEANINGS OF ESI ACT FOR THE FIRST TIME, THE FIRST CONTRIBUTION PERIOD
WILL COMMENCE FROM THE DATE HE ENTERS INTO INSURABLE EMPLOYMENT FOR THE FIRST TIME
OF THE CONTRIBUTION PERIOD CURRENT ON THAT DAY AND HIS CORRESPONDING BENEFIT PERIOD
WILL COMMENCE ON THE EXPIRY OF 9 MONTHS FROM THE DATE OF SUCH EMPLOYMENT."
In Case of the new employee, the employer will have to ascertain from the person
appointed whether he was previously registered under ESI Act and if so, he may be
asked to produce the identity card or temporary identification certificate. If he
produces the same, no fresh Declaration From is required to be filled in, in respect
of such person and the insurance number already alloted will hold good.
LEAVY OF INEREST
Under Section 39(5) of ESI Act, the employer is liable to pay simple
interest at the rate of 15% ( w.e.f. 1st September 1995) per annum or such a higher
rate as may be specified in the regulations in respect of each day of default or
delay in payment of contribution Section 39(5).
DAMAGES FOR LATE PAYMENT OF COTRIBUTION
In addition, under the provision of Regulation 31C of ESI(General)
Regulations, 1950, read with section 85 B(1) of ESI Act, the Corporation is empowered
to recover damages as under :
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Period of delay in payment of contribution |
Rate of damages on the amount due |
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1. Upto less than 2 months |
5% |
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2. 2 Months and above but less than 4 months |
10% |
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3. 4 months and above but less than 6 months |
15% |
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4. 6 months and above |
25% |
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