Hi friends, i am newly came in this home. i want to know what is the minimum salary for esic deduction. max. is 15000/-. pls help me. thanks in advance.
From India, Calcutta
From India, Calcutta
Dear Sukanta,
Basically, ESIC parameters are based on the size of the factory/work station/office. If an organization has 20 or more than 20 staff, then it must provide ESIC benefits to its employees. So, please correct your question.
Regards,
From India, Mumbai
Basically, ESIC parameters are based on the size of the factory/work station/office. If an organization has 20 or more than 20 staff, then it must provide ESIC benefits to its employees. So, please correct your question.
Regards,
From India, Mumbai
Dear Abhay,
Thank you for your suggestion, but my question is, what is the minimum gross salary for deducting ESIC as the maximum gross salary is 15000/-? If an employee earns more than 15000/- as gross salary, then ESIC is not applicable to his/her salary. This is the maximum limitation of gross salary for ESIC. Is there any minimum limitation of gross salary after which ESIC is not applicable?
From India, Calcutta
Thank you for your suggestion, but my question is, what is the minimum gross salary for deducting ESIC as the maximum gross salary is 15000/-? If an employee earns more than 15000/- as gross salary, then ESIC is not applicable to his/her salary. This is the maximum limitation of gross salary for ESIC. Is there any minimum limitation of gross salary after which ESIC is not applicable?
From India, Calcutta
Hi sukanata The Act did not prescribe any minimum wage limit, it being a welfare legislation. B.Saikumar HR & Labour Law consultant Chipinbiz Consultancy. Pvt.Ltd Mumbai Tel: 022-28324234
From India, Mumbai
From India, Mumbai
in my company minimum salary is 2000/- which is my office boy, he does not work more , he complete only some work like , prepare tea, clean toilet etc. hotels downtown disney
From India, New Delhi
From India, New Delhi
Your question is not clear However, please ensure you are paying minimum wages. Else you can be in trouble.
From India, Mumbai
From India, Mumbai
Now, first of all, I must clarify that THERE IS A MINIMUM SALARY FOR ESI. The question is, what is the minimum salary for ESI deduction?
Under the ESI, the minimum salary for deduction is Rs. 100 per day (Rs. 2600 per month). Before that, the minimum deduction was done on Rs. 70/day. However, the deduction from the employer would be made at 4.75% irrespective of the wages paid.
Stay cool,
Atom
From India, Phagwara
Under the ESI, the minimum salary for deduction is Rs. 100 per day (Rs. 2600 per month). Before that, the minimum deduction was done on Rs. 70/day. However, the deduction from the employer would be made at 4.75% irrespective of the wages paid.
Stay cool,
Atom
From India, Phagwara
Dear HR Friends we are in Hospital Area i want to know whether ESIC Applicable for Eye Hospital Pvt. Ltd Total Employee 74+
From India, Mumbai
From India, Mumbai
Dear Atom, I am very grateful to you. Now please let me know the rull n colom of the act because i have to clarify it to my boss. thanks in advance. Regards, Sukanta.
From India, Calcutta
From India, Calcutta
Good Sharing Atomz, Would like to add pm this is, as per ESI Act 15000 Gross is a ceiling for ESI, if anyone falls under that, company has to go for the ESI deductions. Regards, Kunal Kumar
From India, Mumbai
From India, Mumbai
Dear Atomz,
This is a useful update on contribution. Rule 52 does not really fix any minimum wage limit for an employee to be eligible for ESI benefits, but it only exempts the employee from paying his share of the contribution if his average daily wage is Rs 100/- or less. However, the employer is liable to pay 4.75% of such a daily average wage. That means the Act retains the employer's liability irrespective of the wage of the employee. Nevertheless, this is a useful update from your side.
B. Saikumar HR & Labour Law Consultant Chipinbiz Consultancy Pvt. Ltd Mumbai Tel: 022-28324234
From India, Mumbai
This is a useful update on contribution. Rule 52 does not really fix any minimum wage limit for an employee to be eligible for ESI benefits, but it only exempts the employee from paying his share of the contribution if his average daily wage is Rs 100/- or less. However, the employer is liable to pay 4.75% of such a daily average wage. That means the Act retains the employer's liability irrespective of the wage of the employee. Nevertheless, this is a useful update from your side.
B. Saikumar HR & Labour Law Consultant Chipinbiz Consultancy Pvt. Ltd Mumbai Tel: 022-28324234
From India, Mumbai
Dear sir,
Good afternoon.
Recently, I have left my old job and I want to transfer my P.F account to my new company. Please advise me on how I can do that because my old company has not supported me in this matter. Your help and advice would make me more comfortable.
Thanks & regards,
Chetan Tanna
Gandhidham, Kutch.
Gujarat - Pin 370001
09429947978
09979797404
From India, Mumbai
Good afternoon.
Recently, I have left my old job and I want to transfer my P.F account to my new company. Please advise me on how I can do that because my old company has not supported me in this matter. Your help and advice would make me more comfortable.
Thanks & regards,
Chetan Tanna
Gandhidham, Kutch.
Gujarat - Pin 370001
09429947978
09979797404
From India, Mumbai
Dear Chetan, You need pf no and date of leaving service of previous employer and need to fill up the form 13 to transfer the pf account. Regards, sukanta.
From India, Calcutta
From India, Calcutta
Dear Sukanta,
Atomz informed you about the minimum wages for ESIC. However, you should follow the rules of minimum wages. According to the minimum wages for skilled persons, the minimum wage should be Rs. 178.50 per day. So, monthly it would amount to around Rs. 4700/-.
From India, Pune
Atomz informed you about the minimum wages for ESIC. However, you should follow the rules of minimum wages. According to the minimum wages for skilled persons, the minimum wage should be Rs. 178.50 per day. So, monthly it would amount to around Rs. 4700/-.
From India, Pune
Regarding the ESI Act, it must not provide any minimum gross wages for deduction of the ESI, because if it does then it would be against the Minimum Wage Act.
But ESI act says:
Sec 42(1) : "No employee’s contribution shall be payable by or on behalf of an employee whose average daily wages during a wage period are below such wages as may be prescribed by the Central Government."
Under Rule 52 of ESI Central Rules, 1950 the employee earning upto Rs. 100/- a day as wages are exempted from payment of their part of contribution .
Being said that I must give one more point to think about:
if an employee is beyond the limit of ESI (earning more than Rs. 15000) would the establishment be liable under Industrial Dispute Act with regard to that employee?
Stay Cool
Atom
From India, Phagwara
But ESI act says:
Sec 42(1) : "No employee’s contribution shall be payable by or on behalf of an employee whose average daily wages during a wage period are below such wages as may be prescribed by the Central Government."
Under Rule 52 of ESI Central Rules, 1950 the employee earning upto Rs. 100/- a day as wages are exempted from payment of their part of contribution .
Being said that I must give one more point to think about:
if an employee is beyond the limit of ESI (earning more than Rs. 15000) would the establishment be liable under Industrial Dispute Act with regard to that employee?
Stay Cool
Atom
From India, Phagwara
That's exactly what I said. Rule 52 deals with only a situation where an employee is exempted from paying contribution but does not fix any minimum limit for his eligibility for ESI benefits so that the employer will also be free from the liability of paying contribution. If so, it not only militates against the Minimum Wages Act but also against the ESI Act itself.
As regards the implications under the Industrial Dispute Act, I must say that the definition of 'employee' under the ESI Act and the definition of 'workman' under the Industrial Disputes Act are different. Each act has to be judged independently, and one cannot import the definition of 'employee' under the ESI Act into the Industrial Disputes Act to exclude him from the purview of the Industrial Disputes Act merely because he draws wages in excess of Rs. 15,000/- per month.
B. Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
022-28324234
From India, Mumbai
As regards the implications under the Industrial Dispute Act, I must say that the definition of 'employee' under the ESI Act and the definition of 'workman' under the Industrial Disputes Act are different. Each act has to be judged independently, and one cannot import the definition of 'employee' under the ESI Act into the Industrial Disputes Act to exclude him from the purview of the Industrial Disputes Act merely because he draws wages in excess of Rs. 15,000/- per month.
B. Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
022-28324234
From India, Mumbai
To all seniors,
I have recently taken up a job in the generalist HR role and I wanted to understand if there is an option where an employee can have both PF and ESI deducted from their salary. I mean, if an organization already has the system of PF deductions, what benefits would be added by giving ESI deductions too?
Looking forward to your response.
Thanks
From India, Jaipur
I have recently taken up a job in the generalist HR role and I wanted to understand if there is an option where an employee can have both PF and ESI deducted from their salary. I mean, if an organization already has the system of PF deductions, what benefits would be added by giving ESI deductions too?
Looking forward to your response.
Thanks
From India, Jaipur
Dear All,
Thank you, Mr. Atomz and Mr. Saikumar, for the correct inputs.
So it is very much right that ESIC is not the authority which governs or dictates the minimum wages. It is the different body "Labour Department." Am I right?
Now any organization (employer) comes under the purview of ESI act (10+ employees) should contribute 4.75% of the salary paid except on the salary paid more than 15000/- to his employees. Employees whose salary exceeds 100 Rs per day and whose salary is below 15000/- per month should share 1.75% towards the ESI contribution. Am I right?
Further, the same organization comes under the PF act if the number of employees exceeds 20+. And now the minimum wages act comes into play, which is different for different areas/states. I hope I am right.
Now, if the organization has less than 10 employees, then whether the minimum wages act is applicable? (which is strictly applicable once the PF act is applicable).
Looking forward to your feedback.
Abhinandan.
From India, Hubli
Thank you, Mr. Atomz and Mr. Saikumar, for the correct inputs.
So it is very much right that ESIC is not the authority which governs or dictates the minimum wages. It is the different body "Labour Department." Am I right?
Now any organization (employer) comes under the purview of ESI act (10+ employees) should contribute 4.75% of the salary paid except on the salary paid more than 15000/- to his employees. Employees whose salary exceeds 100 Rs per day and whose salary is below 15000/- per month should share 1.75% towards the ESI contribution. Am I right?
Further, the same organization comes under the PF act if the number of employees exceeds 20+. And now the minimum wages act comes into play, which is different for different areas/states. I hope I am right.
Now, if the organization has less than 10 employees, then whether the minimum wages act is applicable? (which is strictly applicable once the PF act is applicable).
Looking forward to your feedback.
Abhinandan.
From India, Hubli
Minimum Wage Act is always applicable whether the establishment is under EPF or ESI. Now, why is the EPF department strict about it? This is because of the court ruling that "PF must be deducted on minimum wages." However, on the other side of this issue, the EPF department cannot enforce the employer to pay Minimum Wages because they do not have the authority to do so.
For instance, if a worker's salary is 3000 per month, the EPF department cannot enforce the employer to pay the worker 4050 (if the minimum wage is 4050). They can only enforce the employer to make the PF deduction up to 3000.
Note: The Punjab & Haryana High Court has ruled against the EPF department for deducting EPF up to minimum wages. The strict rule of EPF deduction is suspended until further notification.
Stay Cool Atom
From India, Phagwara
For instance, if a worker's salary is 3000 per month, the EPF department cannot enforce the employer to pay the worker 4050 (if the minimum wage is 4050). They can only enforce the employer to make the PF deduction up to 3000.
Note: The Punjab & Haryana High Court has ruled against the EPF department for deducting EPF up to minimum wages. The strict rule of EPF deduction is suspended until further notification.
Stay Cool Atom
From India, Phagwara
Supreme court is yet to give the decision Pf dept has issued a circular putting the matter on hold till the court completes it hearing.
From India, Mumbai
From India, Mumbai
Dear All, Please send me the updated minimum wages rate of West Bengal for all the category. Regards, sukanta.
From India, Calcutta
From India, Calcutta
Sukanta, there is no minimum basic for EPF deduction nowadays, but the EPFO is pressuring establishments under EPF to deduct PF at minimum wages. However, in the judgment of the Punjab & Haryana High Court, the Bench ruled that minimum wages in the "Minimum Wages Act" have never been defined as basic wages for the "EPF Act."
So, you can deduct any amount as you want, but please remember that in salary splits, PF must be deducted on basic + DA (it can be 40% or 60% of the gross salary).
For minimum wages update, check out Minimum Wages in West Bengal: [link](http://www.paycheck.in/main/officialminimumwages/west-bengal)
EC = Enrollment Certificate
RC = Registration Certificate
rahulplatys, ESI is applicable to IT organizations, as you stated, but keep in mind that the applicability is only on production, meaning some output must be there for ESI to cover the establishment.
Stay Cool,
Atom
From India, Phagwara
So, you can deduct any amount as you want, but please remember that in salary splits, PF must be deducted on basic + DA (it can be 40% or 60% of the gross salary).
For minimum wages update, check out Minimum Wages in West Bengal: [link](http://www.paycheck.in/main/officialminimumwages/west-bengal)
EC = Enrollment Certificate
RC = Registration Certificate
rahulplatys, ESI is applicable to IT organizations, as you stated, but keep in mind that the applicability is only on production, meaning some output must be there for ESI to cover the establishment.
Stay Cool,
Atom
From India, Phagwara
Dear Atomz Can you please get the citation of the Punjab & Haryana judgement(Journal name and the year in which it was published etc).Iam looking for it. Thanks B.Saikumar
From India, Mumbai
From India, Mumbai
Notification from the EPF deptt. to halt the previous strict pf deduction on minimum wages. Judgement of the Punjab & Haryana High Court. Stay Cool Atom
From India, Phagwara
From India, Phagwara
Dear Sukanta,
The maximum salary for contribution to ESI is Rs 15,000/-, as rightly mentioned by you. What should be the minimum salary? As per the Minimum Wages Act, the employer has to pay the minimum wages laid down by the state. You cannot pay less than minimum wages. Now, ESI is payable on total emoluments, including allowances. Therefore, to my mind, the minimum salary for contribution to ESI is the minimum wages laid down by the state.
Regards,
Securityexpert
From India, New Delhi
The maximum salary for contribution to ESI is Rs 15,000/-, as rightly mentioned by you. What should be the minimum salary? As per the Minimum Wages Act, the employer has to pay the minimum wages laid down by the state. You cannot pay less than minimum wages. Now, ESI is payable on total emoluments, including allowances. Therefore, to my mind, the minimum salary for contribution to ESI is the minimum wages laid down by the state.
Regards,
Securityexpert
From India, New Delhi
There is no salary slab for ESIC (ESIC Act does not provide any slab). So the only thing is the maximum gross salary for ESIC deduction. The maximum Basic (+DA) should be 6500. It could be more if the employee opts for VPF.
From India, Phagwara
From India, Phagwara
Hello, Thanks for reply. I want to know about the rules & regulation of the ESIC deduction. i.e. To whom it is applicable? What are the % rate of the ESIC deduction? etc.... Regards, Sanjivani
From India, Mumbai
From India, Mumbai
Hi, If your hospital in esic implemented area,than definitely esi act is applicable w.e.f 16/03/2011,with minimum 10 employees. R S PAGAD Advocate
From India, Bengaluru
From India, Bengaluru
Dear Sanjivani,
ESIC is deducted from the gross salary. The maximum gross salary is up to ₹15,000. ESIC is deducted at a total of 6.5% from the gross salary. The employer's contribution is 4.75% of the gross salary, while the employee's contribution is 1.75% of the gross salary.
Hope this clarifies things for you.
Regards,
Sukanta
From India, Calcutta
ESIC is deducted from the gross salary. The maximum gross salary is up to ₹15,000. ESIC is deducted at a total of 6.5% from the gross salary. The employer's contribution is 4.75% of the gross salary, while the employee's contribution is 1.75% of the gross salary.
Hope this clarifies things for you.
Regards,
Sukanta
From India, Calcutta
Hi Sukanta,
Thank you very much. Please check the below-mentioned salary bifurcation and let me know if it is correct or not:
Basic - 3795.30
HRA - 1897.95
Conveyance - 800.00
Mobile Allowance - 500.00
Advance Bonus Payout - 292.00
Special Allowance - 4850.00
Gross Salary - 12134.95
Deductions:
- PF Employee Contribution - 455.44
- ESIC Employee Contribution - 212.36
- ESIC Employer Contribution - 576.41
- Professional Tax - 200.00
- Personal Accident - 50.00
Total Deduction - 1294.21
Net Salary - 10640.74
Retrievals:
- PF company Contribution - 516.54
Total Earnings - 516.54
CTC - 12651.00
Regards,
Sanjivani
From India, Mumbai
Thank you very much. Please check the below-mentioned salary bifurcation and let me know if it is correct or not:
Basic - 3795.30
HRA - 1897.95
Conveyance - 800.00
Mobile Allowance - 500.00
Advance Bonus Payout - 292.00
Special Allowance - 4850.00
Gross Salary - 12134.95
Deductions:
- PF Employee Contribution - 455.44
- ESIC Employee Contribution - 212.36
- ESIC Employer Contribution - 576.41
- Professional Tax - 200.00
- Personal Accident - 50.00
Total Deduction - 1294.21
Net Salary - 10640.74
Retrievals:
- PF company Contribution - 516.54
Total Earnings - 516.54
CTC - 12651.00
Regards,
Sanjivani
From India, Mumbai
Dear Sanjivani,
This is not fully correct.
Basic: $3795.30
HRA: $1897.95
Conveyance: $800
Mobile Allowance: $500
Advance Bonus: $292
Special Allowance: $4850
Gross: $12135.25
PF 13.61%: $517
ESIC 4.75%: $577
CTC: $13229
PF 12%: $455
ESIC 1.75%: $213
Insurance: $50
Professional Tax: $110 (with Bengaluru rate)
Total Deductions: $828
Net: $11307
I think you cleared.
Regards,
Sukanta.
From India, Calcutta
This is not fully correct.
Basic: $3795.30
HRA: $1897.95
Conveyance: $800
Mobile Allowance: $500
Advance Bonus: $292
Special Allowance: $4850
Gross: $12135.25
PF 13.61%: $517
ESIC 4.75%: $577
CTC: $13229
PF 12%: $455
ESIC 1.75%: $213
Insurance: $50
Professional Tax: $110 (with Bengaluru rate)
Total Deductions: $828
Net: $11307
I think you cleared.
Regards,
Sukanta.
From India, Calcutta
Dear Sanjivani,
In your example under deductions, you have shown the employer's contribution at Rs. 4.75%, thereby indicating that you have deducted the employer's contribution from the salary of the employee. If this is the case, it is incorrect. The employer should not deduct their contribution from the employee's salary but should remit their share to ESIC from their own account.
Thank you.
B. Saikumar
HR & Labour Law Advisor
Mumbai
09930532927
From India, Mumbai
In your example under deductions, you have shown the employer's contribution at Rs. 4.75%, thereby indicating that you have deducted the employer's contribution from the salary of the employee. If this is the case, it is incorrect. The employer should not deduct their contribution from the employee's salary but should remit their share to ESIC from their own account.
Thank you.
B. Saikumar
HR & Labour Law Advisor
Mumbai
09930532927
From India, Mumbai
Dear Atomz, You are right that previously this was Rs. 70/- Current rate is Rs. 100 per day, but Do you have any Hard copy from ESIC itself. Keep Searching. Regards, Zulfi.
From India, Calcutta
From India, Calcutta
OK Sk. Zulfequar. Please find the attachment for the Rs. 100/day exemption ( point no. 5 Contribution) It is called the Citizen’s Charter. Stay Cool, Atom
From India, Phagwara
From India, Phagwara
Dear Sukantha,
The act is applicable for those establishments where more than 10 workers are working; then they come under the ESIC Act 1948. Here, the employee contribution is 1.75% of the gross salary, and the employer contribution is 4.75%. The benefits of the act include sick leave, maternity benefit, paternity benefit, disablement benefit, accident benefit, and funeral benefit, which are mandatory.
Regards,
B. SHARAN HR Admin.
From India, Bangalore
The act is applicable for those establishments where more than 10 workers are working; then they come under the ESIC Act 1948. Here, the employee contribution is 1.75% of the gross salary, and the employer contribution is 4.75%. The benefits of the act include sick leave, maternity benefit, paternity benefit, disablement benefit, accident benefit, and funeral benefit, which are mandatory.
Regards,
B. SHARAN HR Admin.
From India, Bangalore
The limit of 100 per day makes no sense when the minimum wages are at least 30% more For practical purposes, among compliant companies, this clause is of no consequences
From India, Mumbai
From India, Mumbai
OK
Saswata Banerjee,
It is the labor department's duty to ensure that the employer is not violating the minimum wage regulations, and ESIC has no involvement in this matter. Therefore, let's not confuse the two issues. Additionally, neither I nor you have the authority to change the act or to determine its relevance. Let's focus on providing accurate information to the community.
Stay Cool,
Atom
From India, Phagwara
Saswata Banerjee,
It is the labor department's duty to ensure that the employer is not violating the minimum wage regulations, and ESIC has no involvement in this matter. Therefore, let's not confuse the two issues. Additionally, neither I nor you have the authority to change the act or to determine its relevance. Let's focus on providing accurate information to the community.
Stay Cool,
Atom
From India, Phagwara
Both ESIC and PF departments have taken it upon themselves to ensure that statutory dues are paid on minimum wages (irrespective of whether minimum wages are paid). So these matters are "entangled".
We cannot change the law, but if we do not consider all aspects, we may encounter problems. Therefore, it is essential when posting on the site to include riders that render the provision of the law ineffective for practical purposes.
From India, Mumbai
We cannot change the law, but if we do not consider all aspects, we may encounter problems. Therefore, it is essential when posting on the site to include riders that render the provision of the law ineffective for practical purposes.
From India, Mumbai
Hi Sukanta,
There is no minimum salary for ESIC. Any employee under our payroll must receive ESIC benefits. The maximum limit now is 21,000, not 15,000.
Thanks & Regards,
Nagarjun R
HR Admin
Papas Trading Private Limited
From India, Bengaluru
There is no minimum salary for ESIC. Any employee under our payroll must receive ESIC benefits. The maximum limit now is 21,000, not 15,000.
Thanks & Regards,
Nagarjun R
HR Admin
Papas Trading Private Limited
From India, Bengaluru
Hi Friends, I am the new one, please clear this minimum wages limit is fix. please reply me asap. @ATOMZ Thanks in Advance Regards Gaurav Tomar Officer HR
From India, New Delhi
From India, New Delhi
Hi to All Seniors, I want to know when an employee is eligible for EPF amount withdrawal during his job. Can he withdrawal his PF amount? Regards Gaurav Tomar
From India, New Delhi
From India, New Delhi
Thanks, @Manoj for replying.
I want to know if an employee can withdraw their PF amount during their working period without resigning. If yes, please clarify the process and what steps they should take.
Please clarify this for me as soon as possible.
From India, New Delhi
I want to know if an employee can withdraw their PF amount during their working period without resigning. If yes, please clarify the process and what steps they should take.
Please clarify this for me as soon as possible.
From India, New Delhi
maximum is now <=21000 rs and there is no minimum range for gross. and its deduct on net payable working days wages,
From India, Ludhiana
From India, Ludhiana
Shall ESIC enforce Minimum Wages Act? Does ESIC require us to pay the contribution as per minimum wages? Is this a violation of Section 2(22) of the ESIC Act? Kindly inform me about the implications of this Adhoc C-18 notice. Can I challenge this notice at the tribunal?
From India, Mumbai
From India, Mumbai
ESIC calculation is done based on the gross salary. If the minimum wage is 9000, then whatever an employee receives in hand after the whole month as gross salary will be used for calculation.
The employee's contribution will be 1.75% of the gross earnings, while the employer's contribution will be 4.75% of the gross earnings.
Please note that the maximum gross earning considered for ESIC is 20000 per month. Anything beyond that amount is not accepted for ESIC. In such cases, the company may choose to opt for medical insurance for the staff or workers.
From India
The employee's contribution will be 1.75% of the gross earnings, while the employer's contribution will be 4.75% of the gross earnings.
Please note that the maximum gross earning considered for ESIC is 20000 per month. Anything beyond that amount is not accepted for ESIC. In such cases, the company may choose to opt for medical insurance for the staff or workers.
From India
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