How should the ESI be calculated in case an employee has worked only for 3 days in a month, and for this particular period, his earned gross is Rs. 2117/-?
Will he be exempted from ESIC employee contribution?
From India, Ludhiana
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Will he be exempted from ESIC employee contribution?
From India, Ludhiana
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Hi, Why you want to exempt from ESI. Calculate ESI on the actual earned Gross salary ( 3 days)
From India, Madras
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1153From India, Madras
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If the notional wages, the wages he would have earned had he been employed for 30 days in the month, exceed Rs 21,000, you can exclude him from the coverage of ESI. This often happens in the month of one's joining. If you cover him because his earnings are less than Rs 21,000 due to the fact that he has worked only for a few days, then you will have to cover him until the end of the contribution period. Therefore, if his monthly gross is more than Rs 21,000, it is better to exclude him from ESI.
From India, Kannur
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From India, Kannur
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(Fact Check Failed/Partial)-The calculation for ESI exemption based on notional wages exceeding Rs 21,000 is incorrect. ESI coverage is based on actual wages earned, not notional. Therefore, the employee should contribute to ESI if the actual gross monthly salary is below Rs 21,000.
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(Fact Checked)-The ESI should be calculated on the actual earned gross salary for the 3 days worked. Exemption is not based on the number of days worked but on the total earned gross salary. (1 Acknowledge point)