Stay updated. Subscribe to our blog

Extension of ESI Contribution due to Coronavirus Spread

authorIcon By Bhuvana Anand 1 minute read topicIcon COVID-19

income tax copy-1

On the premise that Coronavirus spread is escalating incessantly, the Government of India has decided to extend the contribution period for the employees and their employers by relaxing provisions of the Employees’ State Insurance (ESI) Act.

Vide ESI due date extension notification no. p-11/14/Misc/1/2019-Rev, the ESIC has extended the period for filing ESI contributions on account of the Coronavirus Outbreak. For February and March months, the dates have been extended to 15th April 2020 and 15th May 2020, respectively. Usually, there is a mandate of 15 days under the Act for submission of insurance contributions. However, in the view of the current pandemic, this has been relaxed to 45 days.

More about the extension notification

As per the Labour Ministry (Government of India) stated that the due date for ESI contribution has been extended as most of the businesses are temporarily closed, and many employees are not working. During this period, no penalty or interest will be levied on establishments for the delay in contribution.

The Employees’ State Insurance (ESI) Act is applicable to more than 1.21 million factories and establishments in India. It is worth mentioning that in the view of the current pandemic, the Government of Karnataka has also issued a notification to give paid leaves to employees who are coronavirus infected. Read more

It is appreciable how the Government is taking such supportive initiatives to keep the nation organized under these times of turmoil and uncertainty. Please comment below if you have any queries. We will be happy to answer them for you.

Stay Safe, Stay happy!

SHARE THIS STORY greythr facebook | greythr twitter | greythr linkedin | greythr whatsapp