One of our employees joined the company in Dec 2012. His previous organization had deducted his ESI up to Nov 2012. Currently, his salary in our company is beyond ESI limits. Please advise whether we need to deduct his ESI in the December 2012 salary.
Regards,
Sivajith S.
From India, Mumbai
Acknowledge(1)
Amend(0)
5Regards,
Sivajith S.
From India, Mumbai
Acknowledge(1)Amend(0)
You should not deduct ESI if the employee's salary is more than Rs. 15,000. The employee is new, so you don't have to deduct his ESI contribution since his salary exceeds the ESI limits. You have raised this doubt because, in a contribution period (e.g., Oct-Mar or Apr-Sep), if the employee is covered under ESI and his salary increases above Rs. 15,000 in the middle of the contribution period, you have to pay the ESI contribution until the end of the contribution period. However, this rule applies only to your company's employees who are covered under ESI. If the new joiner's salary is above Rs. 15,000, then you don't have to contribute for the employee.
Thank you.
From India, Mumbai
Acknowledge(5)
Amend(0)
Thank you.
From India, Mumbai
Acknowledge(5)Amend(0)
Hi.. Mr. Shenbagarajan Sir I have a doubt on which you have shared regarding ESI Contribution. If employee getting more than 15000/- as net salary there is not required to contribute?
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
I understand that once the concerned employee comes under the coverage of ESIC, their ESI contribution has to be continued until the end of the period October-March or April-September, as the case may be, even if their gross salary exceeds 15,000 per month. However, in case the employee has been allotted a new ESI number upon new joining and their salary is above 15,000 on the day of new joining, they will not come under ESI.
Acknowledge(1)
Amend(0)
Acknowledge(1)Amend(0)
You should not deduct ESI contribution if an employee's salary is more than Rs. 15,000/- for newly joined employees only. However, as per the ESI Act, if an existing employee's salary is increased above Rs. 15,000/- in the middle of the contribution period, you have to pay the contribution up to the end of the contribution period.
Regards,
B. Ram
From India
Acknowledge(1)Amend(0)
Regards,
B. Ram
From India
Acknowledge(1)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
ESI deduction.doc
Salary Break up - After deduction.xls
NOTICE GO 4 ESI LIMIT 15000[1].pdf