In case an employee’s salary increases above Rs. 15,000/- for only 3 months in a year due to increased wages paid on account of higher productivity, will he cease to enjoy ESI benefits.”
From India, Delhi
Acknowledge(0)
Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Dear Meenu,
In case an employee's salary increases above Rs. 15,000 for only 3 months in a year due to increased wages paid on account of higher productivity, then the employee will enjoy ESI benefits up to the contribution period (meaning till 30th April and 30th September), and the management has to deposit his contribution at least on Rs. 15,000.
Thank you.
From India, Gurgaon
Acknowledge(0)Amend(0)
17In case an employee's salary increases above Rs. 15,000 for only 3 months in a year due to increased wages paid on account of higher productivity, then the employee will enjoy ESI benefits up to the contribution period (meaning till 30th April and 30th September), and the management has to deposit his contribution at least on Rs. 15,000.
Thank you.
From India, Gurgaon
Acknowledge(0)Amend(0)
Dear Sir,
I have started a small business in Hyderabad with around 10 employees and would like to open an account for ESI & PF in Hyderabad. Can you please suggest to me how to proceed with this?
Regards,
Md Younus
From India, Bangalore
Acknowledge(0)Amend(0)
I have started a small business in Hyderabad with around 10 employees and would like to open an account for ESI & PF in Hyderabad. Can you please suggest to me how to proceed with this?
Regards,
Md Younus
From India, Bangalore
Acknowledge(0)Amend(0)
If anyone gets an increment for only 3 months and their wages go beyond Rs. 15,000, we will first have to determine in which month their salary increased. For instance, if the increase occurred in a middle month like May, then the individual will be under ESI coverage as they have already made their ESI contribution for April. Starting from May, ESI deductions will be made from their salary based on the full wages received, not just limited to Rs. 15,000.
From India, New Delhi
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)
Meenu, is this higher wages productivity linked bonus or a permanent increase in the wage rate payable to the employee ?
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Hi,
Short-term enhancements shall not be considered as your normal increment. Once your contribution is running within the contributing period, it shall automatically continue until the end of the contribution period. Therefore, there is no question of waiving it off.
From India, Calcutta
Acknowledge(0)Amend(0)
Short-term enhancements shall not be considered as your normal increment. Once your contribution is running within the contributing period, it shall automatically continue until the end of the contribution period. Therefore, there is no question of waiving it off.
From India, Calcutta
Acknowledge(0)Amend(0)
Dear Meenu,
What I understand from your statement is that an employee has been offered an enhancement due to productivity. This means the rise is not in the form of an increment. His/Her salary rate is stable or constant. In this situation, one cannot be considered an uncovered employee under the ambit of an act. You should deduct contributions on all the emoluments, including productivity bonuses, or else you have to pay the productivity bonus in the form of an incentive with a gap of three months. Then it will not fall within the purview of the act.
Regards,
KIRAN KALE
From India, Kolhapur
Acknowledge(0)Amend(0)
What I understand from your statement is that an employee has been offered an enhancement due to productivity. This means the rise is not in the form of an increment. His/Her salary rate is stable or constant. In this situation, one cannot be considered an uncovered employee under the ambit of an act. You should deduct contributions on all the emoluments, including productivity bonuses, or else you have to pay the productivity bonus in the form of an incentive with a gap of three months. Then it will not fall within the purview of the act.
Regards,
KIRAN KALE
From India, Kolhapur
Acknowledge(0)Amend(0)
Dear Md. Younus,
Your information is very brief to provide the right opinion or advice. If your business is a manufacturing unit, then when using power, your unit will be covered under the ESI Act but will not be covered statutorily under the EPF & MP Act as it requires 20 employees in the unit. However, you can apply for coverage under section 1(4) of the act voluntarily.
Suppose your unit is a shop or commercial establishment, then the provisions of the ESI Act will be different as the act requires 20 employees for coverage and there is no provision to cover the unit voluntarily as compared to the EPF Act.
Regards,
KIRAN KALE
From India, Kolhapur
Acknowledge(0)Amend(0)
Your information is very brief to provide the right opinion or advice. If your business is a manufacturing unit, then when using power, your unit will be covered under the ESI Act but will not be covered statutorily under the EPF & MP Act as it requires 20 employees in the unit. However, you can apply for coverage under section 1(4) of the act voluntarily.
Suppose your unit is a shop or commercial establishment, then the provisions of the ESI Act will be different as the act requires 20 employees for coverage and there is no provision to cover the unit voluntarily as compared to the EPF Act.
Regards,
KIRAN KALE
From India, Kolhapur
Acknowledge(0)Amend(0)
Hi,
I have a total of 5 years of experience in admin and secretarial work, and I have 2 years of experience in HR. Recently, I have completed an MBA in HR. I want to choose the payroll process because I am good at advanced Excel, PF, ESI, TDS, and income tax. Kindly suggest to me what is required for a payroll executive. Also, what is the salary package in this field?
Thank you.
From India, Delhi
Acknowledge(0)Amend(0)
I have a total of 5 years of experience in admin and secretarial work, and I have 2 years of experience in HR. Recently, I have completed an MBA in HR. I want to choose the payroll process because I am good at advanced Excel, PF, ESI, TDS, and income tax. Kindly suggest to me what is required for a payroll executive. Also, what is the salary package in this field?
Thank you.
From India, Delhi
Acknowledge(0)Amend(0)
Hi Kiran is correct. An employee will be exempted from ESI only if there is any increase in his monthly salary by way of increment, revision, etc. In that case too, till the contribution period is over, an employee has to pay or remit his/her contribution to ESI Corporation.
R. Devarajan
From India, Madras
Acknowledge(0)Amend(0)
R. Devarajan
From India, Madras
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.