No ESIC contribution on Arrears
ESIC is a comprehensive Social Security Scheme designed to accomplish the task of socially protecting the 'employees' in the organized sector against the events of sickness, maternity, disablement and death due to employment injury and to provide medical care to the insured employees and their families.
This question has come to me many times, and always find people are wrongly interpreting law. As and when there is any increase in the wages, declared with retrospective effect, the liability towards payment of contribution accrues only in the month in which the decision is announced and no contribution is payable on the arrears pertaining to the period prior to the month of declaration/ announcement.
Reference :-
http://esic.nic.in/press/ESIC_FAQ_booklet.pdfhttp://www.esicmaharashtra.gov.in/htmldocs/esic_contribution_arrears.htm
Also Visit -
- Kerala High Court - has struck down the prescription of service weightage, allowance of extra duty and risk allowance prescribed by the State Government in the Notification produced
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