Hi, can anybody clear my doubt? If an employee is covered under the ESI Act and earning gross wages of Rs. 7500, and in the middle of the contribution period, his wages cross the ceiling limit (i.e., his wages increase to Rs. 10500), should I deduct the ESI contribution in respect of the employee for the remaining period of contribution? If it is necessary to deduct the contribution, in what amount do I have to deduct? Please give your opinion.
From India, New Delhi
Acknowledge(0)
Amend(0)
5From India, New Delhi
Acknowledge(0)Amend(0)
Hi, Contribution has to be paid till the end of six months period. say september or March as applicable. regards, AM
From India
Acknowledge(0)Amend(0)
From India
Acknowledge(0)Amend(0)
Hi, Thanks for your response. Still I am not clear about this, Whether we should deduct the contibution for his full wages or ceiling wages (i.e Rs.10500/- or 7500/-)
From India, New Delhi
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
Hi, you have to deduct the ESI contribution for the Full contribution period. You need to paythe contribution on the increased wage. i.e, Rs.10,500.00 in this case. Hope, its clear Arasu
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Hi,
If you don't have the notification from them, then go and take it, only then you will do it from 10,000/-, not from 10,500. Without the gazette, you cannot deduct from 10,000, so you have to continue the deduction at 7,500/-. The limit is 10,000/-. For more confirmation, ask any officer from the ESI office.
In my organization, we are still following the old procedure because the gazette has not been received.
Regards,
Divya
From India, Bangalore
Acknowledge(0)Amend(0)
If you don't have the notification from them, then go and take it, only then you will do it from 10,000/-, not from 10,500. Without the gazette, you cannot deduct from 10,000, so you have to continue the deduction at 7,500/-. The limit is 10,000/-. For more confirmation, ask any officer from the ESI office.
In my organization, we are still following the old procedure because the gazette has not been received.
Regards,
Divya
From India, Bangalore
Acknowledge(0)Amend(0)
Hi,
As per the new amendment in the Employees' State Insurance Corporation (ESIC) Act, the existing wage limit for coverage under the Act is Rs. 10,000 per month (with effect from 1.10.2006). So, if the salary or wages of somebody are more than Rs. 10,000, he/she is no longer covered under this Act, and thus, no amount needs to be deducted from his/her salary from that month on.
Regards,
Satyam
Acknowledge(0)Amend(0)
As per the new amendment in the Employees' State Insurance Corporation (ESIC) Act, the existing wage limit for coverage under the Act is Rs. 10,000 per month (with effect from 1.10.2006). So, if the salary or wages of somebody are more than Rs. 10,000, he/she is no longer covered under this Act, and thus, no amount needs to be deducted from his/her salary from that month on.
Regards,
Satyam
Acknowledge(0)Amend(0)
As Far as I know the day his salary ref even 10001 he is out of the bracket so you could stop the deduction from that month onwards
Acknowledge(0)Amend(0)
Acknowledge(0)Amend(0)
Hi Satyam,
Yes, if the amount exceeds 10000/-, then no deduction. But again, I'll ask the same question... Did you get the letter of amendment from the ESI office or not? Don't start this until you get the gazette, okay?
Regards,
Divya
From India, Bangalore
Acknowledge(0)Amend(0)
Yes, if the amount exceeds 10000/-, then no deduction. But again, I'll ask the same question... Did you get the letter of amendment from the ESI office or not? Don't start this until you get the gazette, okay?
Regards,
Divya
From India, Bangalore
Acknowledge(0)Amend(0)
Hi,
Actually, the government has increased the limit of ESI from 7500 to 10000. Before last month, the limit was 7500, and now it is 10000. If he is getting a salary more than 7500 before and now getting 10500, in both situations ESI will be deducted.
ESI is deducted at 1.75% of the gross.
Regards,
Parveen
Acknowledge(0)Amend(0)
Actually, the government has increased the limit of ESI from 7500 to 10000. Before last month, the limit was 7500, and now it is 10000. If he is getting a salary more than 7500 before and now getting 10500, in both situations ESI will be deducted.
ESI is deducted at 1.75% of the gross.
Regards,
Parveen
Acknowledge(0)Amend(0)
Hi,
As far as my knowledge goes, once an employee's salary exceeds the ESI limit of INR 10,000 (as per the new amendment effective from October 2006), the deduction is discontinued. No deductions will be made on the new or old salary.
Akshada
Acknowledge(0)Amend(0)
As far as my knowledge goes, once an employee's salary exceeds the ESI limit of INR 10,000 (as per the new amendment effective from October 2006), the deduction is discontinued. No deductions will be made on the new or old salary.
Akshada
Acknowledge(0)Amend(0)
Hi Satyam,
Could you please provide a clear explanation along with the specified rules or section of the ESI Amendment Act in this regard? This will help us all understand it clearly and proceed with further action.
Regards,
A. Paulraj
From India, New Delhi
Acknowledge(0)Amend(0)
Could you please provide a clear explanation along with the specified rules or section of the ESI Amendment Act in this regard? This will help us all understand it clearly and proceed with further action.
Regards,
A. Paulraj
From India, New Delhi
Acknowledge(0)Amend(0)
Hi,
The monthly wage limit for coverage under the ESI Act would be as prescribed by the central government in the ESI (central) rules, 1950. The existing wage ceiling for coverage (excluding remuneration for overtime work) is Rs. 10,000 per month. An employee who is covered at the beginning of a contribution period shall continue to remain covered till the end of that contribution period, notwithstanding the fact that his wages may exceed the prescribed wage ceiling at any time after the commencement of that contribution period. The wage ceiling for the purpose of coverage is revised from time to time by the central government on the specific recommendation of the corporation. Currently, it has been increased to Rs. 10,000.
Please revert for further queries.
Regards.
From India, Mumbai
Acknowledge(0)Amend(0)
The monthly wage limit for coverage under the ESI Act would be as prescribed by the central government in the ESI (central) rules, 1950. The existing wage ceiling for coverage (excluding remuneration for overtime work) is Rs. 10,000 per month. An employee who is covered at the beginning of a contribution period shall continue to remain covered till the end of that contribution period, notwithstanding the fact that his wages may exceed the prescribed wage ceiling at any time after the commencement of that contribution period. The wage ceiling for the purpose of coverage is revised from time to time by the central government on the specific recommendation of the corporation. Currently, it has been increased to Rs. 10,000.
Please revert for further queries.
Regards.
From India, Mumbai
Acknowledge(0)Amend(0)
Hi,
Could you please inform me about the section and/or subsection of the act that addresses the continuation of ESI deductions from an employee's salary after it has exceeded the ceiling limit?
Thank you.
Akshada
Acknowledge(0)Amend(0)
Could you please inform me about the section and/or subsection of the act that addresses the continuation of ESI deductions from an employee's salary after it has exceeded the ceiling limit?
Thank you.
Akshada
Acknowledge(0)Amend(0)
Hi Pracinno, Thanks for your reply. But I am not still clear in this topic. Can you explain this topic in easy way (i.e) Clear statement of ESIC Rules. Waiting for your reply Paulraj
From India, New Delhi
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
Friends,
Please note the following regarding this query:
1. The onus and accountability of the implementation of Labour Law are on the employer - whether or not you receive the intimation through the Gazette.
2. The ESI wage limit has been increased w.e.f. 1st October so that we can take appropriate action in advance - i.e., before the start of the contribution period.
3. There are two contribution periods - April to September and the other is October to March. For an employee whose ESI contribution is being deducted, and later the wages are increased in the middle of the contribution period, then the deductions and the contributions from the employer should continue till the end of the contribution period.
For example, if an employee is earning 7400 and the salary increases to 12000, the ESI deduction shall be on all of 12000.
I hope this makes things easier to understand.
Regards,
Ketan
From India, Mumbai
Acknowledge(0)Amend(0)
Please note the following regarding this query:
1. The onus and accountability of the implementation of Labour Law are on the employer - whether or not you receive the intimation through the Gazette.
2. The ESI wage limit has been increased w.e.f. 1st October so that we can take appropriate action in advance - i.e., before the start of the contribution period.
3. There are two contribution periods - April to September and the other is October to March. For an employee whose ESI contribution is being deducted, and later the wages are increased in the middle of the contribution period, then the deductions and the contributions from the employer should continue till the end of the contribution period.
For example, if an employee is earning 7400 and the salary increases to 12000, the ESI deduction shall be on all of 12000.
I hope this makes things easier to understand.
Regards,
Ketan
From India, Mumbai
Acknowledge(0)Amend(0)
Hi , Can anybody help me out on this . How can ESI contribution be paid centrally for an organisation who has branches in different states. Thanks Akshada
Acknowledge(0)Amend(0)
Acknowledge(0)Amend(0)
Hi,
Very clearly, what I meant is that during a given contribution period, even if the wages increase, the contribution shall continue until the completion of that period irrespective of the increase, and the ceiling will be $10,000 (the maximum limit).
From India, Mumbai
Acknowledge(0)Amend(0)
Very clearly, what I meant is that during a given contribution period, even if the wages increase, the contribution shall continue until the completion of that period irrespective of the increase, and the ceiling will be $10,000 (the maximum limit).
From India, Mumbai
Acknowledge(0)Amend(0)
Dear ESI has to be covered, no doubt, up to 31st March 2007, upon Rs. 10,500. Because of the raise in the middle of the contribution period, even though it exceeds the ceiling amount of Rs. 10,000, the wages should be considered in total until 31st March 2007.
Regards, Narayana Murty
Acknowledge(0)Amend(0)
Regards, Narayana Murty
Acknowledge(0)Amend(0)
Notification is issued long back and ignorance of law is no excuse so please discontinue if salary is 10000+. Cheers!
From India
Acknowledge(0)Amend(0)
From India
Acknowledge(0)Amend(0)
Hi All , Can anybody Please help me iam still waiting for the answer to my query ie "how can ESI be paid centrally by an organisation that has branches in different states " ???? Regards Akshada
Acknowledge(0)Amend(0)
Acknowledge(0)Amend(0)
Hello,
Your query is about ESI being paid centrally, as ESI is not governed by the State Insurance Act but by a central act.
Here is an example for your satisfaction:
I work at Checkmate Industrial Guards Pvt. Ltd. My company, located in Noida, is covered by the Kanpur Regional ESI office. Our ESI code in the draft letter is 11-2345-101, and both employer and employee contributions are paid to the State Bank of India. All contributions are submitted through challans, and cash is deposited in the SBI bank.
I hope you are satisfied with the above declaration.
Your question remains unanswered.
Example: I work for a Security Agency that has received a contract for labor supply work at M/S Coca Cola in Naziabad. Although our head office is in Noida, we operate in Naziabad (Uttarakhand). Our workers require medical facilities, but as we do not provide medical facilities under the ESI Act, we will apply for a sub-code in the ESI Branch office at Naziabad with all necessary documents. Once we receive the sub-code draft letter from the Naziabad ESI Branch office, we will submit the contributions at the SBI Bank in Naziabad. Employee declaration forms 1 and 3 will be submitted to the ESI branch office, following which ESI cards for medical facilities will be issued to all employees working on the Naziabad projects.
Note: The ESI State Insurance Act provides medical facilities to insured persons and their dependents.
Regards,
Lovenish Bhagat
Noida
lovenishbhagat@gmail.com
From India, Delhi
Acknowledge(0)Amend(0)
Your query is about ESI being paid centrally, as ESI is not governed by the State Insurance Act but by a central act.
Here is an example for your satisfaction:
I work at Checkmate Industrial Guards Pvt. Ltd. My company, located in Noida, is covered by the Kanpur Regional ESI office. Our ESI code in the draft letter is 11-2345-101, and both employer and employee contributions are paid to the State Bank of India. All contributions are submitted through challans, and cash is deposited in the SBI bank.
I hope you are satisfied with the above declaration.
Your question remains unanswered.
Example: I work for a Security Agency that has received a contract for labor supply work at M/S Coca Cola in Naziabad. Although our head office is in Noida, we operate in Naziabad (Uttarakhand). Our workers require medical facilities, but as we do not provide medical facilities under the ESI Act, we will apply for a sub-code in the ESI Branch office at Naziabad with all necessary documents. Once we receive the sub-code draft letter from the Naziabad ESI Branch office, we will submit the contributions at the SBI Bank in Naziabad. Employee declaration forms 1 and 3 will be submitted to the ESI branch office, following which ESI cards for medical facilities will be issued to all employees working on the Naziabad projects.
Note: The ESI State Insurance Act provides medical facilities to insured persons and their dependents.
Regards,
Lovenish Bhagat
Noida
lovenishbhagat@gmail.com
From India, Delhi
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
ESI Rule 52-Amended-Aver age Wage Limit Increased For Certain Cases Under Exemption From Payment .pdf
ESI NOTIFICATION CEILING LIMIT 10000 TO 15000 w.e.f.1-05-2010 .doc