Penalties

Non-payment of EPF/ESI contributions

• Imprisonment up to 3 years and fine up to ₹1 lakh
• Serious penalty for contribution default

• Imprisonment up to 1 year and/or fine up to ₹50,000 or both; for subsequent offence, imprisonment ranging from 2-3 years
• Employer liability for timely gratuity payment

• Imprisonment up to 6 months and/or fine up to ₹50,000
• Applies to both employers and employees