Dear friends, I need the detailed eligibility criteria for an employee for ESI contribution. Please suggest any special salary structure to safe guard from ESI authorities.
From India, New Delhi
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1From India, New Delhi
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ESI is applicable to factories employing 10 workers and other establishments employing 20.
Those drawing salary not more than Rs 10000 are covered.
The rate of employees' contribution is 1.75 % of salary and the employer's contribution is 4.75%
The salary is the sum paid in a month and all payments which are paid in regular intervals of not exceeding two months are considered. As such, Travelling Allowance is exluded from salary.
If you want to escape from ESI, you have to frame a salary structure above Rs 10000. BUT WHEN THE SALARY CEILING IS AGAIN REVISED BY THE GOVT. YOUR EMPLOYEES BECOME COVERED AND AT THAT TIME THE CONTRIBUTION PAYABLE WILL ALSO BE VERY HIGH.
For an employer it is always desirable to have ESI coverage because many compensation payable by the employer under the Workmen's Compensation Act, Maternity Benefit Act are taken on shoulder by the ESI Corporation aganist this 4.75% contribution payable by the employer to the ESIC.
Regards,
Madhu.T.K
From India, Kannur
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Those drawing salary not more than Rs 10000 are covered.
The rate of employees' contribution is 1.75 % of salary and the employer's contribution is 4.75%
The salary is the sum paid in a month and all payments which are paid in regular intervals of not exceeding two months are considered. As such, Travelling Allowance is exluded from salary.
If you want to escape from ESI, you have to frame a salary structure above Rs 10000. BUT WHEN THE SALARY CEILING IS AGAIN REVISED BY THE GOVT. YOUR EMPLOYEES BECOME COVERED AND AT THAT TIME THE CONTRIBUTION PAYABLE WILL ALSO BE VERY HIGH.
For an employer it is always desirable to have ESI coverage because many compensation payable by the employer under the Workmen's Compensation Act, Maternity Benefit Act are taken on shoulder by the ESI Corporation aganist this 4.75% contribution payable by the employer to the ESIC.
Regards,
Madhu.T.K
From India, Kannur
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Dear Madhu,
Thanks for this valuable information. Could you please illustrate if ESI contribution is calculated on what part of the salary? I mean to say Basic, Gross Salary, Net Salary, or CTC. Could you also tell me what components of the salary are considered for ESIC calculation?
With best regards,
Manoj
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Thanks for this valuable information. Could you please illustrate if ESI contribution is calculated on what part of the salary? I mean to say Basic, Gross Salary, Net Salary, or CTC. Could you also tell me what components of the salary are considered for ESIC calculation?
With best regards,
Manoj
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One clarification is required. We have a few employees who were retained upon attaining the age of 58 years. We had issued a fresh letter to them for extension with a lump sum amount, with no statutory obligation for bonuses, LTA, etc. For PF, they withdrew their amount with no further obligation on the company. Will they be covered under ESIC?
Bibek
From India, Calcutta
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Bibek
From India, Calcutta
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Hello Sir/Madam,
I want to learn about Payroll. Can anyone please tell me how we can calculate the PF and ESI? I have a little bit of knowledge about it. PF is calculated based on the Basic, and ESI is calculated on the gross salary.
But what is the procedure to calculate it? I have read about it, but I could not understand it properly. Please help me.
Thanks,
Rajwant
From India, Chandigarh
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I want to learn about Payroll. Can anyone please tell me how we can calculate the PF and ESI? I have a little bit of knowledge about it. PF is calculated based on the Basic, and ESI is calculated on the gross salary.
But what is the procedure to calculate it? I have read about it, but I could not understand it properly. Please help me.
Thanks,
Rajwant
From India, Chandigarh
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Dear Raj,
For PF, it is 12% from the employee and 13.61% from the employer. For ESI, the contribution is 1.75% from the employee and 4.75% from the employer on the gross salary, which should not exceed Rs. 15,000 for employees earning below that amount. Additionally, PT calculations should be done as per the State PT Act, and TDS deductions should be made as applicable.
From India, Bangalore
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For PF, it is 12% from the employee and 13.61% from the employer. For ESI, the contribution is 1.75% from the employee and 4.75% from the employer on the gross salary, which should not exceed Rs. 15,000 for employees earning below that amount. Additionally, PT calculations should be done as per the State PT Act, and TDS deductions should be made as applicable.
From India, Bangalore
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Hello Venugopala B A,
Thank you very much for your response. Could you please provide me with some information about PF, specifically "For PF 12% + 13.61% from the employer"? Is the 12% to be paid by the employee, and is the employer's contribution of 13.61% also divided into different segments?
Additionally, could you please share your email address as I have some more queries to discuss?
Thank you,
Rajwant
From India, Chandigarh
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Thank you very much for your response. Could you please provide me with some information about PF, specifically "For PF 12% + 13.61% from the employer"? Is the 12% to be paid by the employee, and is the employer's contribution of 13.61% also divided into different segments?
Additionally, could you please share your email address as I have some more queries to discuss?
Thank you,
Rajwant
From India, Chandigarh
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Dear Seniors,
Please help. We have 30+ employees in our company and are registered for PF but not for ESI.
1. Is it compulsory for us to register for ESIC? What will happen if not?
2. One more question, we are paying a fixed salary to some employees like Basic 12000+Conveyance 3000, are they also eligible for PF?
Please advise.
From India, Pune
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Please help. We have 30+ employees in our company and are registered for PF but not for ESI.
1. Is it compulsory for us to register for ESIC? What will happen if not?
2. One more question, we are paying a fixed salary to some employees like Basic 12000+Conveyance 3000, are they also eligible for PF?
Please advise.
From India, Pune
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Dear All,
Our total employee strength is 85, but the number of employees falling under the ESI slab is just 5. Please let me know whether these employees should be covered by ESI, or since only 5 employees fall under ESI, we may not need to cover them. Please reply at your earliest convenience.
From India, Bangalore
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Our total employee strength is 85, but the number of employees falling under the ESI slab is just 5. Please let me know whether these employees should be covered by ESI, or since only 5 employees fall under ESI, we may not need to cover them. Please reply at your earliest convenience.
From India, Bangalore
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I am forming a new sole proprietorship firm. I will hire engineers and supply them to companies on a contract basis. I have received the first order to supply 5 engineers for 1 year. I have not yet hired any engineers, but I will do so shortly.
Should I apply for ESI registration in advance before hiring anyone, or can I apply after hiring and supplying?
Sanjay
From India, Delhi
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Should I apply for ESI registration in advance before hiring anyone, or can I apply after hiring and supplying?
Sanjay
From India, Delhi
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