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Dear All,

My query is regarding the ESI amount deduction from employees' salaries. As per the new amendment in ESI slabs, the range is from 10K to 15K. In my organization, a lot of my employees are getting a salary between 10100 to 15000. The ESI ceiling was amended with effect from 1st May 10. However, the ESI Return cycle is from Oct to March and April to Sept. Therefore, in the month of April, all my employees are not under ESI. In the case we referred to earlier, in increments from 9500 to 11000 up to the end of the Return cycle, we need to deduct. Does this mean that we are required to deduct ESI from my employees until September?

Please reply.

Thanks,
Krishna

From India

I think the ESI is to be deducted for those who draw salary upto 15000/- according to new amendment.......
From India, Bangalore

Dear friends I think according to new amendment, the ESI is to be deducted to those who draw upto 15k........pls check
From India, Bangalore

Dear All,

ESIC is deducted on Gross Salary of up to Rs. 15,000 per month. Employees earning a salary above Rs. 15,000 per month are exempted from the scheme.

There are two contribution periods of six months' duration each in a year, in respect of an insured employee, with a corresponding benefit period of six months each - i.e., April to September and October to March of the following year.

If an employee's salary is incremented in between any contribution period and exceeds Rs. 15,000 per month gross, then the ESIC contribution would be on the whole of the incremented salary. However, if an employee's salary is incremented at the beginning of any contribution period and exceeds Rs. 15,000 per month gross, then they are exempted from ESIC.

Example 1:

An employee's current salary is Rs. 12,000 gross per month. Upon an increment effective from May to Rs. 16,000 per month, ESIC is contributed on Rs. 16,000 until September. From October, the employee is exempted.

Example 2:

An employee's current salary is Rs. 12,000 gross per month. Upon an increment effective from April or October to Rs. 16,000 per month, ESIC contribution ceases from April or October onwards.

No ESIC contribution is deducted thereafter. I hope this clarifies the queries. Let me know if you need further clarification.

From India, Thana

Hello All,

Please help me. My company deducts the whole amount of ESI from my salary, saying that it's a government rule. But as per my knowledge, it's a 1.75% deduction from the employee's salary. Could you please let me know if there is any new rule created in India [that the whole amount will be paid by the employee only] or any new government form designed? My company is a Pvt. Ltd. company, and they also do not provide facilities for PF. In the past, they had us sign a form stating that if we did not sign it, then the whole PF amount would be deducted from our salary.

Please guide me.

Thanks

From India, Jaipur

Hi Ritu,

I have a query regarding the deduction of ESI from incentives. I am working in the automotive sector under a dealership. My gross salary exceeds the ESI slab limit of Rs. 15,000. Currently, I am not eligible for ESI deduction. However, my employer has now implemented a rule stating that approximately 6.5% will be deducted from my earned incentives, in addition to TDS. No deductions have been made from my salary thus far.

Could you please help me understand this new policy?

Thank you,
Ritu

From India, Gangtok

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