Notification / Circular No – File No. P-11/12/Misc./2024-Rev.II I/3121347/2025 dated October 09, 2025
Applicable Act/Rule: Employees’ State Insurance Act, 1948
An analysis of March 2025 Monthly Contribution (MC) data revealed that several large units reported many employees with zero contributory days. These employees were marked as “On Leave/No Work,” raising concerns over whether they are actually on payroll, have left employment, or are being reported with zero days to avoid compliance. Misreporting is considered a false return under Section 85(e) of the ESI Act.
Regional offices are directed to scrutinize MC data for big units where numerous employees have zero contributory days. The analysis should involve consultation with employers to ensure that employees who have left employment are correctly removed from MC data. Compliance with Section 103-A(1) regarding eligibility for medical benefits must be maintained. Any discrepancies or misreporting should be rectified to avoid penal consequences.
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