Dear HR professionals,
Our employees have received increments, and now they are no longer eligible for ESI. However, the ESI amount is still being deducted from them as their names have not been removed from the government list. One of our employees has raised a question as to why we are not informing them of this change. I kindly request anyone to please review this situation.
From India, Kochi
Acknowledge(0)
Amend(0)
13Our employees have received increments, and now they are no longer eligible for ESI. However, the ESI amount is still being deducted from them as their names have not been removed from the government list. One of our employees has raised a question as to why we are not informing them of this change. I kindly request anyone to please review this situation.
From India, Kochi
Acknowledge(0)Amend(0)
Hi,
The ESI contribution period is as follows:
1st April to 30th September
1st October to 31st March of the next year.
After the commencement of a contribution period, even if the gross salary of an employee exceeds Rs. 21,000 monthly, the employee continues to be covered under the ESI scheme until the end of that contribution period, and the contribution is deducted from the new salary even if it is above Rs. 21,000/-. Therefore, ESI will be deducted until the end of the contribution period regardless of any salary increase.
If you are the HR of the organization, you may explain this to the employees as mentioned above.
By the way, what do you mean by the government list?
From India, Madras
Acknowledge(0)Amend(0)
The ESI contribution period is as follows:
1st April to 30th September
1st October to 31st March of the next year.
After the commencement of a contribution period, even if the gross salary of an employee exceeds Rs. 21,000 monthly, the employee continues to be covered under the ESI scheme until the end of that contribution period, and the contribution is deducted from the new salary even if it is above Rs. 21,000/-. Therefore, ESI will be deducted until the end of the contribution period regardless of any salary increase.
If you are the HR of the organization, you may explain this to the employees as mentioned above.
By the way, what do you mean by the government list?
From India, Madras
Acknowledge(0)Amend(0)
Sorry! That was a verbal mistake I meant about the ESI list. Thank you. Mam, do we need to mail this to the employees?
From India, Kochi
Acknowledge(0)Amend(0)
From India, Kochi
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.
Employee referral scheme new.doc