Understanding ESIC Compliance When Employee Salary Exceeds 21,000 - CiteHR

ESIC Contribution After Salary Increase

If an employee's gross salary increases to more than 21,000, and he exceeds the ESIC limit, how long should the employer continue to pay the ESIC? Will the employer pay the ESIC for the next 3 months only, or will it extend to the next quarter as well?

For example, if an employee's salary increases to more than 21,000 in the month of February, is the employer supposed to pay the ESIC until March, or will he pay for the next quarter as well?

From India, Delhi
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rkn61
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ESI Contribution Period for Salary Exceeding Rs. 21,000

Even if the salary ceiling of Rs. 21,000/- under ESI is exceeded by a hike in salary, the concerned employee must complete the contribution period, which is from April to September and October to March.

As per your post, the employee's salary is increased with effect from February, so you have to deposit his contribution for March as well in the month of April.

From India, Aizawl
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