Dear All, Please help me understand how to calculate ESIC...? IS it on the Basic salary or on the Gross amount ?? Regards Bhavna
From India, Delhi
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34From India, Delhi
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Hi Bhavna.
ESI is contributed from both the sides Employee as well as Employer.
It is been calculated on the basis of Gross salary per month and the maximum ceiling is 10000 Rs./Month.
The contribution from both the sides is as below-
Employee Side- 1.75% of gross/month
So if gross of an employee is 8000/month then
ESI contribution would be 8000*1.75% = 140 Rupees
Employer side- 4.75% of gross/month
ESI contribution would be 8000* 4.75% = 380 Rupees.
Hope it might have helped you to understand the same..
Regards,
Amit Seth
From India, Ahmadabad
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ESI is contributed from both the sides Employee as well as Employer.
It is been calculated on the basis of Gross salary per month and the maximum ceiling is 10000 Rs./Month.
The contribution from both the sides is as below-
Employee Side- 1.75% of gross/month
So if gross of an employee is 8000/month then
ESI contribution would be 8000*1.75% = 140 Rupees
Employer side- 4.75% of gross/month
ESI contribution would be 8000* 4.75% = 380 Rupees.
Hope it might have helped you to understand the same..
Regards,
Amit Seth
From India, Ahmadabad
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Hi Amit
Just want to clear is this amount payable or its just to avail medical benefits as I could see our organisation pay employee 2400perannum as additional allowance in the form of ESi .
Regards,
Deepa
From India, Gurgaon
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Just want to clear is this amount payable or its just to avail medical benefits as I could see our organisation pay employee 2400perannum as additional allowance in the form of ESi .
Regards,
Deepa
From India, Gurgaon
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(Fact Check Failed/Partial)-The reply provided is incorrect. ESIC contribution is calculated on the gross amount, not just for medical benefits. It is a legal requirement.
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Hi Deepa,
Its not there that under this Act only Medical benefit is provided, apart from this some more benefits are also provided, which are as below-
1. Sickness Benefit: Every insured employee is entitled to the cash benefit for the period of sickness, certified by a duly appointed medical practitioner.
2. Maternity Benefit: A cash benefit is payable to an insured woman employee, in case of miscarriage, medical termination of pregnancy, sickness arising from the pregnancy.
3. Disablement Benefit: It is also been paid in form of cash to an employee who is injured in an accident during the course of his employment.
4. Dependent's Benefit: If nay employee dies as a result of any injury, his dependents shall be entitled to a benefit in the form of pension.
5. Medical Benefit:
6. Funeral Expenses
7. Payment of benefit in case of death.
Moreover, it is the rule that if your company is covered under this Act, then you have to be with the rules, and it is required to register the company under this Act.
Regards,
Amit Seth.
From India, Ahmadabad
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Its not there that under this Act only Medical benefit is provided, apart from this some more benefits are also provided, which are as below-
1. Sickness Benefit: Every insured employee is entitled to the cash benefit for the period of sickness, certified by a duly appointed medical practitioner.
2. Maternity Benefit: A cash benefit is payable to an insured woman employee, in case of miscarriage, medical termination of pregnancy, sickness arising from the pregnancy.
3. Disablement Benefit: It is also been paid in form of cash to an employee who is injured in an accident during the course of his employment.
4. Dependent's Benefit: If nay employee dies as a result of any injury, his dependents shall be entitled to a benefit in the form of pension.
5. Medical Benefit:
6. Funeral Expenses
7. Payment of benefit in case of death.
Moreover, it is the rule that if your company is covered under this Act, then you have to be with the rules, and it is required to register the company under this Act.
Regards,
Amit Seth.
From India, Ahmadabad
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(Fact Check Failed/Partial)-The user reply contains information about additional benefits under the Employee State Insurance Corporation (ESIC) Act, which is accurate. However, it does not directly address the question regarding how to calculate ESIC contributions based on basic salary or gross amount.
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Thank You Amit SAAB
Dear Friend,
Kindly click on the following link, it will give you some required information,
https://www.citehr.com/search_new.ph...tion&submit=Go
Pls let me know was this information useful,,
If not let me try out more & give information,,,,
In CiteHR you will get A to Z information on HR…..
Regards
M. Peer Mohamed Sardhar
093831 93832
From India, Coimbatore
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Dear Friend,
Kindly click on the following link, it will give you some required information,
https://www.citehr.com/search_new.ph...tion&submit=Go
Pls let me know was this information useful,,
If not let me try out more & give information,,,,
In CiteHR you will get A to Z information on HR…..
Regards
M. Peer Mohamed Sardhar
093831 93832
From India, Coimbatore
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(Fact Check Failed/Partial)-[The reply does not directly address the query on calculating ESIC, instead, it refers to a link for information. ESIC is typically calculated on the gross amount, not basic salary. Direct explanation or guidance would be more beneficial.]
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Hi Amit,
Just wanted to get clarified on one thing is ESI calculated on Gross or Total Earnings of an Employee. And according to me if his/her limit cross 10,000 in between the Half year term than also he should to be covered till that particular period is finished, correct me if i am wrong.
I would like to be in touch with ur are of great help on my first day in this site.
Regards
Amith R.
From India, Bangalore
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Just wanted to get clarified on one thing is ESI calculated on Gross or Total Earnings of an Employee. And according to me if his/her limit cross 10,000 in between the Half year term than also he should to be covered till that particular period is finished, correct me if i am wrong.
I would like to be in touch with ur are of great help on my first day in this site.
Regards
Amith R.
From India, Bangalore
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(Fact Check Failed/Partial)-The ESI is calculated on the Gross amount of an employee's salary, not just the Basic. The coverage limit is indeed Rs. 21,000 per month. Feel free to ask any more questions!
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Dear,
ESI Contribution is payable on the Gross Salary. The rate of contribution is 1.75% & 4.75% for employees & employer respectively. The wage limit for ESI Contribution is Rs. 10,000/- PM.
Thanks,
Amit Kumar Tawar
From India, Mundra
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ESI Contribution is payable on the Gross Salary. The rate of contribution is 1.75% & 4.75% for employees & employer respectively. The wage limit for ESI Contribution is Rs. 10,000/- PM.
Thanks,
Amit Kumar Tawar
From India, Mundra
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(Fact Check Failed/Partial)-ESI Contribution is calculated on the Gross Salary, not the Basic Salary. The rates are 1.75% for employees and 4.75% for employers. The wage limit is Rs. 21,000/- PM, not Rs. 10,000/-.
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Hi Amith,
ESI is calculated on the basis of Gross salary/month.
Regarding the second part, i'm not that much sure.. but in my view also you are bit correct, he remain covered under the Act till that benefit period..
Thank you so much, you are always welcome...
Regards,
Amit Seth.
From India, Ahmadabad
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ESI is calculated on the basis of Gross salary/month.
Regarding the second part, i'm not that much sure.. but in my view also you are bit correct, he remain covered under the Act till that benefit period..
Thank you so much, you are always welcome...
Regards,
Amit Seth.
From India, Ahmadabad
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(Fact Check Failed/Partial)-The user's reply is [B]incorrect[/B].
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Hi All,
What amit says it valid.. an employee will remained covered for the deduction till the end of the six monthly contribution period.
You can even check with the corresponding benefit period for the ESI benefits to the employees.
Regards,
Bajirao
From India, Mumbai
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What amit says it valid.. an employee will remained covered for the deduction till the end of the six monthly contribution period.
You can even check with the corresponding benefit period for the ESI benefits to the employees.
Regards,
Bajirao
From India, Mumbai
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(Fact Check Failed/Partial)-The user's reply contains inaccurate information regarding ESIC calculations and the duration of coverage. ESIC is calculated on the gross amount, not basic salary. Employees remain covered regardless of the six-monthly contribution period. It's crucial to adhere to accurate ESIC calculation methods.
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hi!
Esi is caluculated on Basic + D.A. + All Allowances ( eg - Hra, Conv, O.T. ect ) + any other kind of earnings = Gross Amt.
It is diveded into two shares 1.75% that is employee share and 4.75% employer share total 6.5 %.
All employee who has their Gross Salary 10000 or less has to give their contribution towards ESI as 10000 is the celing for esi frm 1 oct 2006.
Now when u calculate it if some Amount comes in decimals you have to round it of to next rupee eg - if say Rs 45.3 it will be taken as Rs 46.
From India, Delhi
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Esi is caluculated on Basic + D.A. + All Allowances ( eg - Hra, Conv, O.T. ect ) + any other kind of earnings = Gross Amt.
It is diveded into two shares 1.75% that is employee share and 4.75% employer share total 6.5 %.
All employee who has their Gross Salary 10000 or less has to give their contribution towards ESI as 10000 is the celing for esi frm 1 oct 2006.
Now when u calculate it if some Amount comes in decimals you have to round it of to next rupee eg - if say Rs 45.3 it will be taken as Rs 46.
From India, Delhi
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Check Failed/Partial)-The calculation of ESI is based on the employee's gross salary, not the basic salary alone. It includes Basic + D.A. + All Allowances. The correct ESI rates are 1.75% for employees and 4.75% for employers, totaling 6.5%. The ceiling for ESI is Rs 21,000, not Rs 10,000 as mentioned.
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ESIC Calculation.zip
SALARY SHEET CALCULATION.xls
CiteHR.AI
(Fact Checked)-The user reply is correct regarding the calculation of ESI contributions based on gross salary for both employees and employers. (1 Acknowledge point)