An employer who is liable to pay contributions in respect of any employee shall pay those contributions within 15 days of the last day of the calendar month in which the contributions fall due :
Provided that where a factory/establishment is permanently closed, the employer shall pay contribution on the last day of its closure :
Provided that an employer may opt, in such manner as may be prescribed, by the Director General for payment of amount in advance towards contribution to be adjusted against contributions payable by him (including employees’ contribution) for a wage period so that the balance of advance amount continues to be more than the contributions due and payable at the end of the concerned wage period. Such an employer shall furnish in the prescribed pro forma Form 5-A, a six monthly statement of contributions payable and paid in advance with the balance left at the end of each month along with return of contributions to the appropriate regional office of the Corporation.
31-A. Interest on contribution due, but not paid in time. — An employer who fails to pay contribution within the periods specified in Regulation 31, shall be liable to pay simple interest at the rate of 12 per cent. per annum in respect of each day of default or delay in payment of contribution.
31-B. Recovery of interest. — Any interest payable under regulation 31-A may be recovered as an arrear of land revenue or under section 45-C to section 45-I of the Act.
31-C. Damages on contributions or any other amount due, but not paid in time. — If an employer fails to pay contribution within the periods specified under Regulations 31, or any other amount payable under the Act, the Corporation may recover damages, not exceeding the rates mentioned below, by way of penalty : — Period of delay Maximum rate of damages in % per annum of the amount due
(i) less than 2 months 5%
(ii) 2 months and above but less than 4 months 10%
(iii) 4 months and above but less than 6 months 15%
(iv) 6 months and above 25%
Provided that the Corporation in relating to a company in respect of which a Resolution Plan has been sanctioned by the National Company Law Tribunal under the Insolvency & Bankruptcy Code, 2016 may :
(a) Waive up to 50 percent of the damages levied or leviable depending upon merits of the case.
(b) In exceptional hard cases, waive either totally or partially the damages levied or leviable.
31-D. Appellate Authority. — The Appellate Authority under Section 45-AA of the Act shall be the Insurance Commissioner, the Additional Commissioner, Regional Director and Joint Director.
31-E. Interest on amounts refunded to the employer. — If an employer finally succeeds in the appeal under Section 45-AA, the amount deposited by him with the Corporation, in full or part, as per decision of the Appellate Authority, shall be refunded to him along with simple interest at the rate specified in Regulation 31-A.