Hi seniors,
If an employee falls under ESI for 6 months and after that, the gross of that employee exceeds Rs. 15,000/-, should ESI be paid until the half-yearly return of that particular year, or can it be stopped once the rise has occurred?
From India, Bangalore
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If an employee falls under ESI for 6 months and after that, the gross of that employee exceeds Rs. 15,000/-, should ESI be paid until the half-yearly return of that particular year, or can it be stopped once the rise has occurred?
From India, Bangalore
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Dear Premlathav ji,
You will get an answer to your query at the link provided below: https://www.citehr.com/459252-esic.html
From India, Mumbai
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2584You will get an answer to your query at the link provided below: https://www.citehr.com/459252-esic.html
From India, Mumbai
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Hi,
ESI should be paid until the half-yearly return of that particular year. For example, let's say an employee, Mr. Abc, received a salary hike, and the gross salary increased to 16000 in June '13. In this case, the ESIC should be paid until we submit the half-yearly return in May '13. After that, we can stop ESIC contributions.
Thanks,
Nitesh Verma
From India, Bangalore
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ESI should be paid until the half-yearly return of that particular year. For example, let's say an employee, Mr. Abc, received a salary hike, and the gross salary increased to 16000 in June '13. In this case, the ESIC should be paid until we submit the half-yearly return in May '13. After that, we can stop ESIC contributions.
Thanks,
Nitesh Verma
From India, Bangalore
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Dear Nitesh ji,
Can you please provide more information on half-yearly returns? What is it? What is the period for submission? When and how should it be submitted, and why? What are the consequences if it is not submitted, for you, ESI, and IP?
Your response will help members understand the ESI Act.
From India, Mumbai
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Can you please provide more information on half-yearly returns? What is it? What is the period for submission? When and how should it be submitted, and why? What are the consequences if it is not submitted, for you, ESI, and IP?
Your response will help members understand the ESI Act.
From India, Mumbai
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It is not half-yearly return but a contribution period. That means an employee whose salary (ESI qualifying salary without considering unusual variable pay, like incentives, overtime pay, and other amounts like washing allowance which are excluded from wages) crosses the limit (currently Rs 15,000) in the middle of the contribution period (we have two contribution periods, namely, April to September and October to March of the following year), we have to contribute until the end of the contribution period. For instance, if the salary crosses Rs 15,000 in June, contributions should be paid until September. Similarly, if in October the salary is increased, contributions should be paid until March, i.e., the end of the contribution period.
The salary of coverage should only be considered as the salary for out-of-coverage. If a salary increase is due to an increase in any variable component in any month, that should not be considered an increase for the purpose of out-of-coverage. Variables that are paid at intervals of not more than two months should be considered as part of the salary. Overtime will qualify for contribution, although for deciding coverage, the same is not taken into account.
Regards,
Madhu.T.K
From India, Kannur
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The salary of coverage should only be considered as the salary for out-of-coverage. If a salary increase is due to an increase in any variable component in any month, that should not be considered an increase for the purpose of out-of-coverage. Variables that are paid at intervals of not more than two months should be considered as part of the salary. Overtime will qualify for contribution, although for deciding coverage, the same is not taken into account.
Regards,
Madhu.T.K
From India, Kannur
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Dear Sir,
I agree with your views, but I have one doubt. If any employee is covered under ESI and he/she leaves in the month of July '12, what should we do? Will the ESI contributions stop at the time of leaving the company's service or not?
From India, Gurgaon
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I agree with your views, but I have one doubt. If any employee is covered under ESI and he/she leaves in the month of July '12, what should we do? Will the ESI contributions stop at the time of leaving the company's service or not?
From India, Gurgaon
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If the employee leaves in the middle of the contribution period, their contribution will automatically stop from the last day of their departure.
D. Phani Kumar
DGM-HR
Vasavadatta Cement
Sedam
Gulbarga Dist, Karnataka.
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D. Phani Kumar
DGM-HR
Vasavadatta Cement
Sedam
Gulbarga Dist, Karnataka.
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Yes you have to pay the esic amount till next half yearly return.
From Saudi Arabia, Jiddah
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From Saudi Arabia, Jiddah
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H Please note that if the employee leaves in the middle of the contribution period his contribution will automatically stop from the last day of his leaving. Sohan
From India, New Delhi
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From India, New Delhi
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When our respected Shri. Madhu ji corrected a member as above and provided his valuable input, why is there still confusion in the minds of some members? If they feel they are correct, they are requested to prove that they are correct.
From India, Mumbai
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From India, Mumbai
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Further Relaxation For Employers On Filing Of ESI Contribution For The Period October 2019 To Ma.pdf
ESI contribution Relaxation Period.jpeg