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I would like to know ESIC Contribution in respect of arrears of wages & ESIC arrears calculating period ?
From India, Mumbai
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From India, Mumbai
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Sir,
As per section 2(22) of the ESI Act, 1948, the term 'wages' includes all remunerations (except as specifically excluded in the said section) paid or payable. Hence, the contribution on arrears of wages is also payable under the provisions of the said Act.
However, in my opinion, the contribution on such arrears is payable since the date when such a revision in wages is announced or wages are reported pending for payment. Before making a final decision, it would be more appropriate to consult with the appropriate Regional Office of ESIC in your area for a decision on the matter. This will help ensure that omitted wages are not pointed out by the Inspecting Officer during record inspections.
For calculating the period of contribution, please refer to section 2(23) of the said Act, which defines 'wage period' as the period in respect of which the wages are ordinarily payable to an employee.
With regards,
Harsh Kumar Mehta
From India, Noida
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As per section 2(22) of the ESI Act, 1948, the term 'wages' includes all remunerations (except as specifically excluded in the said section) paid or payable. Hence, the contribution on arrears of wages is also payable under the provisions of the said Act.
However, in my opinion, the contribution on such arrears is payable since the date when such a revision in wages is announced or wages are reported pending for payment. Before making a final decision, it would be more appropriate to consult with the appropriate Regional Office of ESIC in your area for a decision on the matter. This will help ensure that omitted wages are not pointed out by the Inspecting Officer during record inspections.
For calculating the period of contribution, please refer to section 2(23) of the said Act, which defines 'wage period' as the period in respect of which the wages are ordinarily payable to an employee.
With regards,
Harsh Kumar Mehta
From India, Noida
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Today I received clarification regarding the same from ESIC Maharashtra.
"As and when any increase in wages/remuneration is declared with retrospective effect, the liability towards payment of contribution accrues only in the month in which the decision is announced, and no contribution is payable on the arrears pertaining to the period prior to the month of declaration/announcement."
From India, Mumbai
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"As and when any increase in wages/remuneration is declared with retrospective effect, the liability towards payment of contribution accrues only in the month in which the decision is announced, and no contribution is payable on the arrears pertaining to the period prior to the month of declaration/announcement."
From India, Mumbai
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No contribution is payable on arrears of wages due to wage revision as a settlement or agreement to take retrospective effect.
However, contribution is definitely payable on annual/periodical incremental arrears which are declared belatedly.
S. SANKARALINGAM
Retd. Sr. DY. DIRECTOR, ESIC
ADVOCATE & LABOUR LAW ADVISOR
Mobile 09790754727
From India, Chennai
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However, contribution is definitely payable on annual/periodical incremental arrears which are declared belatedly.
S. SANKARALINGAM
Retd. Sr. DY. DIRECTOR, ESIC
ADVOCATE & LABOUR LAW ADVISOR
Mobile 09790754727
From India, Chennai
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Employees are not benefitted by the payment of contributions in respect of their arrears for previous years because by the time of payment, the contribution-benefit periods based on which cash benefits are paid would be over.
Varghese Mathew
From India, Thiruvananthapuram
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Varghese Mathew
From India, Thiruvananthapuram
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What will happen if husband and wife is employed and individually their salaries are deductable as per ESI limit. Can any one exclude under the Act? Please clarify.
From India, Calcutta
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From India, Calcutta
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If a husband and wife are both employed and their individual salaries are less than Rs 15,000/- (as of today), they are liable to be covered under ESIS, and there is no provision to exclude one of them. If one of them is excluded (even if there is a provision in the future), the parents of the excluded employee will not receive any medical benefits.
Varghese Mathew
9961266966
Labour Law Adviser
Trivandrum
From India, Thiruvananthapuram
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Varghese Mathew
9961266966
Labour Law Adviser
Trivandrum
From India, Thiruvananthapuram
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I agree with the words of Mr.Varghese.There is no provision to exclude one. As per ESIC Act “ EMPLOYEE ” means any person employed for wages in or in connection with the work of a factory or establishment to which this Act applies . It only talks of the employees contribution who is working in the establishment, even though both the husband and wife work in the same establishment the contribution has to be remitted to the ESIC if their salary is up to Rs.15,000/-
From India, Mumbai
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From India, Mumbai
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