The component Overtime is not to be considered for ESI applicability. It is considered only for ESI deduction purpose.
If an employee’s salary excluding OT Rs.14000/- & OT is Rs 2000/- then he is covered is under ESI & ESI is to be deducted on Rs. 16000/-
There are two contribution period for ESI i.e. 1st April to 30th September and 1st October to 31st March. Thus, if an employee is covered under ESIC in April, then he is to covered for the whole contribution period i.e. up to Sept., even if is salary in May is more than Rs.15000/- , the employee will be out of ESIC only from October.
Hope the above clears all your doubts.
Regards
Ganesh S Iyer
From India, Mumbai
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1If an employee’s salary excluding OT Rs.14000/- & OT is Rs 2000/- then he is covered is under ESI & ESI is to be deducted on Rs. 16000/-
There are two contribution period for ESI i.e. 1st April to 30th September and 1st October to 31st March. Thus, if an employee is covered under ESIC in April, then he is to covered for the whole contribution period i.e. up to Sept., even if is salary in May is more than Rs.15000/- , the employee will be out of ESIC only from October.
Hope the above clears all your doubts.
Regards
Ganesh S Iyer
From India, Mumbai
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As per my experience, we are paying ESIC on OT as well. This is because we have to consider two aspects:
1. Employees should work for 8 hours a day. If something happens during that time, ESIC will take care of it, as this is usual and is their responsibility.
2. On the other hand, regarding overtime, it is separate from normal working hours. If something happens in that context, who will be responsible? If you go to ESIC to produce an accident report, will they accept it as it is? No, they will inquire about everything - shift time, time, and place of the accident.
If gross >15000, no ESIC. If gross >15000 + OT amount Rs. 4000, no ESIC. If Gross Rs. 14500 + OT amount Rs. 4000 = Paying ESIC on Rs. 18000. Consider these factors: the risk of work, place of work (machinery, chemicals, heavy electrical instruments), hours of work.
According to us, the employee and the risk upon us matter.
From India, Bangalore
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1. Employees should work for 8 hours a day. If something happens during that time, ESIC will take care of it, as this is usual and is their responsibility.
2. On the other hand, regarding overtime, it is separate from normal working hours. If something happens in that context, who will be responsible? If you go to ESIC to produce an accident report, will they accept it as it is? No, they will inquire about everything - shift time, time, and place of the accident.
If gross >15000, no ESIC. If gross >15000 + OT amount Rs. 4000, no ESIC. If Gross Rs. 14500 + OT amount Rs. 4000 = Paying ESIC on Rs. 18000. Consider these factors: the risk of work, place of work (machinery, chemicals, heavy electrical instruments), hours of work.
According to us, the employee and the risk upon us matter.
From India, Bangalore
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