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

Such rest isn’t prolonged to different older or new contribution interval.

Keeping in view the issue being confronted by the employers in submitting ESI contribution for the contribution interval April 2020 to September 2020 inside 42 days, the federal government has relaxed the provisions of The Employees’ State Insurance (General) Regulations, 1950.

Accordingly, the one-time alternative has been given to these Employers who couldn’t file ESI contribution for the contribution interval April 2020 to September 2020 inside 42 days after the top of the contribution interval.

The Employers are actually allowed to file this contribution for the Contribution Period from 1st April 2020 to thirtieth September 2020, up to 15.01.2021. There will, nonetheless, not be any influence on the workers working in institutions and contributing to the ESI. The ESI advantages to the workers will proceed to be offered as common

However, the comfort comes with circumstances:

1. This one-time rest is proscribed to the contribution interval ending September 2020 solely and no additional rest in limitation for different contribution interval is allowed.

2. Such rest isn’t prolonged to different older or new contribution interval.

In the case of each worker, the employer is liable to pay his personal contribution and in addition deduct worker’s share from the wages and pay these contributions to the ESI inside 15 days of the last day of the calendar month by which the contributions are due.

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

Do What is ? FE Knowledge Desk explains every of these and extra intimately at Financial Express Explained. Also get Live BSE/NSE Stock Prices, newest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t neglect to attempt our free Income Tax Calculator device.

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