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Imprisonment for a period of up to 2 years and a fine up to Rs. 5,000, in case of non payments, delayed payments or falsifying payments under ESIC Act.

Delayed payment: In consequence of delayed payment, then the employer will have to pay  simple interest of 12% p.a in respect of each day.

Non-payment: The employer is liable to pay.

Period of delay Rate of damages in % p.a
Less than 2 months 5%
2 to 4 months 10%
4 to 6 months 15%
6 months and above 25%

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