We have appraised a few of our employees in June for whom ESI was applicable. We have paid their ESI for April 2012 and May 2012 and do not need to pay it from June 2012, as the salary has increased to more than 15,000/-. However, our consultant told us that according to ESI rules, since we have paid for the first two months in this six-month period, we have to pay ESI for the remaining four months, June-Sept 2012. I don't understand why we need to pay ESI when the employee is earning more than 15k per month, and it is not going to benefit the employee or employer.
Please let me know what the rule exactly says regarding this. Any help is appreciated! Thanks!
From India, Pune
Acknowledge(0)
Amend(0)
Please let me know what the rule exactly says regarding this. Any help is appreciated! Thanks!
From India, Pune
Acknowledge(0)Amend(0)
Dear Himangi Your consultant is right, you bound to pay esic up to complete the current contribution period ( sept 12) after that you can make out of coverage from the esic This is as per esic act
From India, New Delhi
Acknowledge(0)Amend(0)
41From India, New Delhi
Acknowledge(0)Amend(0)
As Ashok said, your consultant is correct.
There are two contribution periods, each of six months' duration. Once paid in this block, you should continue paying until the period is completed. Changes can only be made at the beginning of the next contribution period:
Contribution period:
1st April to 30th Sept
1st Oct. to 31st March
Thanks,
Lakshmi
JeDhru Softech - Payroll Outsourcing
From United States, Ogden
Acknowledge(0)Amend(0)
There are two contribution periods, each of six months' duration. Once paid in this block, you should continue paying until the period is completed. Changes can only be made at the beginning of the next contribution period:
Contribution period:
1st April to 30th Sept
1st Oct. to 31st March
Thanks,
Lakshmi
JeDhru Softech - Payroll Outsourcing
From United States, Ogden
Acknowledge(0)Amend(0)
Hai I just want to know how much amount will be disbursed from ESI for a person who goes on maternity leave. Her current salary is Rs.15,000.00 Please let me know . Thanks&Regards Govind Krishna
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Himangi,
Please find the ESIC Rules (Central) 1950 and read the highlighted area Rule 50. The same incident occurred with our company, and I myself had to go to the Regional Office to solve the matter. The officials told me, "You can contribute and deduct Employers/Employee portion in case it exceeds Rs 15,000/- per month even after the current contribution period if the employee wishes to get benefits regularly from ESIC."
With Regards,
Debanka Das
(HR-Compliance)
P.P. Marketing Solutions Pvt Ltd.
From India, Calcutta
Acknowledge(0)Amend(0)
Please find the ESIC Rules (Central) 1950 and read the highlighted area Rule 50. The same incident occurred with our company, and I myself had to go to the Regional Office to solve the matter. The officials told me, "You can contribute and deduct Employers/Employee portion in case it exceeds Rs 15,000/- per month even after the current contribution period if the employee wishes to get benefits regularly from ESIC."
With Regards,
Debanka Das
(HR-Compliance)
P.P. Marketing Solutions Pvt Ltd.
From India, Calcutta
Acknowledge(0)Amend(0)
Once you paid ESI IN THE BEGINNING OF THE CONTRIBUTION i-e Apr or Sep, till end of the contribution period, ESI is liable to pay. So your consultant’s advice is correct in this regard.
From India, Madras
Acknowledge(0)Amend(0)
From India, Madras
Acknowledge(0)Amend(0)
Dear Sirs, Please let me know salary limit from which esi amount can be deducted ie., whether the salary limit has been enhanced or not. yours faithfully, s. ghosal.
From India, Kolkata
Acknowledge(0)Amend(0)
From India, Kolkata
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.