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%|