Hello,
Can anyone tell me if ESI is deducted when an employee's salary is 14000/- per month? What is the maximum limit of ESI? Does it also vary from company to company, such as in IT compared to other sectors? Additionally, please inform me about the amount of PF deduction.
Thank you.
From India, Gurgaon
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2Can anyone tell me if ESI is deducted when an employee's salary is 14000/- per month? What is the maximum limit of ESI? Does it also vary from company to company, such as in IT compared to other sectors? Additionally, please inform me about the amount of PF deduction.
Thank you.
From India, Gurgaon
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Dear friend,
The wage ceiling for ESI coverage is Rs. 15,000 per month wef 1-5-2010. Wages include DA, HRA, Conveyance allowance other than Travelling Allowance, and all allowances paid on a monthly basis. You can refer to section 2(22) of the ESI Act 1948.
Wages do not include overtime allowance for coverage purposes, but ESI contributions are payable on overtime.
V. Ramachandrarao
From India, Gandhinagar
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The wage ceiling for ESI coverage is Rs. 15,000 per month wef 1-5-2010. Wages include DA, HRA, Conveyance allowance other than Travelling Allowance, and all allowances paid on a monthly basis. You can refer to section 2(22) of the ESI Act 1948.
Wages do not include overtime allowance for coverage purposes, but ESI contributions are payable on overtime.
V. Ramachandrarao
From India, Gandhinagar
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Dear vramachandrarao Please refer recent Chennai high court judgement on the exclusion of conveyance from ESI coverage. Shiva
From India, Madras
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From India, Madras
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Dear all, Can you please tell me how a salary break up is done and on what basis percentage as well as HRA and Cov.llo
From India, New Delhi
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From India, New Delhi
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Dear sir, ESI maximum limit is 15000/- per month. If employee gross salary is 15001/- then he will not eligeble to ESIC.
From India, Hyderabad
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From India, Hyderabad
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Dear All,
Please note that while calculating wages gross per month, exclude Washing allowance as per the departmental circular of ESI. For any further clarification, you may visit the ESI site, which will give you more insight.
Ravi
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Please note that while calculating wages gross per month, exclude Washing allowance as per the departmental circular of ESI. For any further clarification, you may visit the ESI site, which will give you more insight.
Ravi
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Dear All,
The Gross Salary can be divided into:
- Basic: 35% - 50% of Gross
- HRA: 40% of Basic in Non-Metro / 50% of Basic in Metro
- Medical Allowance: Rs. 1250/- per month up to Rs. 15000/- per annum
- Special Allowance: Balance of Gross will be provided
Regarding ESI:
- Employers' Share: 4.75% on Gross Salary
- Employees' Share: 1.75% on Gross Salary
- Maximum Salary limit covered under ESI is Rs. 15000/-. If above Rs. 15001/- per month, ESI will not be covered.
Regards,
K. SURESH - Miyapur
From India, Hyderabad
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The Gross Salary can be divided into:
- Basic: 35% - 50% of Gross
- HRA: 40% of Basic in Non-Metro / 50% of Basic in Metro
- Medical Allowance: Rs. 1250/- per month up to Rs. 15000/- per annum
- Special Allowance: Balance of Gross will be provided
Regarding ESI:
- Employers' Share: 4.75% on Gross Salary
- Employees' Share: 1.75% on Gross Salary
- Maximum Salary limit covered under ESI is Rs. 15000/-. If above Rs. 15001/- per month, ESI will not be covered.
Regards,
K. SURESH - Miyapur
From India, Hyderabad
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If the employee experienced hike in the salary and his gross salary is past 15000/- then when will he be skipped from the ESIC benefit ??
From India, Hyderabad
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From India, Hyderabad
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As posted above by Mr. Abbas and Mr. Madan Mohan, I would further clarify some points on ESIS. One gets covered under the ESIS if the gross salary is less than or equal to Rs. 15,000/-. In case the salary rises above or equal to Rs. 15,001/- due to any salary revision, increment, etc., he would not get exempted until he has reached the cut-out point (contributory period), i.e., April/October. This means he would still be in the ESIS coverage until the month of April or October, whichever is earlier.
From India, Mumbai
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From India, Mumbai
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SALARY with out PF Deduction.xls
PF Coverage Salary Component under New PF Rule.pdf