Hi all,
Please provide information on the limit of salary for ESI deduction in my company. Currently, we are exempting ESI for employees earning above 10,000 Rs, i.e., 10,001 onwards (CTC per month). However, a newly joined Accounts person has suggested deducting ESI for the same employees if their in-hand limit does not exceed 10K.
In this scenario, we would need to revise the salaries of many of our employees. Please advise.
From India, Bangalore
3Please provide information on the limit of salary for ESI deduction in my company. Currently, we are exempting ESI for employees earning above 10,000 Rs, i.e., 10,001 onwards (CTC per month). However, a newly joined Accounts person has suggested deducting ESI for the same employees if their in-hand limit does not exceed 10K.
In this scenario, we would need to revise the salaries of many of our employees. Please advise.
From India, Bangalore
In hand salary will not be taken into consideration for ESI deduction only payslip salary i.e. gross salary will be taken into consideration. There is no need to incrase limit.
From India, Pune
From India, Pune
The CTC may include employer's contribution to EPF, medical allowance (which may be paid quarterly), traveling allowance, and even gratuity payable at the time of discharge. This is not the salary for the purpose of the determination of ESI or EPF. Find out whether the salary without the above parts of CTC is more than Rs 10000. If yes, then only you are uncovered; otherwise, you are covered by ESI.
Regards, Madhu.T.K
From India, Kannur
Regards, Madhu.T.K
From India, Kannur
Dear All,
I want to know to whom the ESI Act is applicable. As per the act, it states that if an employee's gross salary exceeds 10k, then ESI is not applicable. How about the companies? Our company has 45 employees, out of which less than 20 are drawing a gross salary of less than Rs. 10,000. In this case, are we supposed to register for ESI or not? I have heard that if an employee's gross salary exceeds more than 20 (who are drawing less than 10k), then we are supposed to register, or else we need not have to go for ESI. Please clarify the same.
Please let me know if you need further information or clarification. Thank you.
From India, Bangalore
I want to know to whom the ESI Act is applicable. As per the act, it states that if an employee's gross salary exceeds 10k, then ESI is not applicable. How about the companies? Our company has 45 employees, out of which less than 20 are drawing a gross salary of less than Rs. 10,000. In this case, are we supposed to register for ESI or not? I have heard that if an employee's gross salary exceeds more than 20 (who are drawing less than 10k), then we are supposed to register, or else we need not have to go for ESI. Please clarify the same.
Please let me know if you need further information or clarification. Thank you.
From India, Bangalore
Under ESI, only establishments are covered regardless of the salary paid. If you employ 10 or more workers, your establishment falls under the ESI schemes. There may be employees who are not covered, even if they receive 10K, as long as the establishment is covered under the scheme.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
HI ESI ACT APPLIES WHEN FOR ESTABLISHMENT EMPLOYING 20 OR MORE EMPLOYEES DRAWING LESS THAN 10K AND IN CASE OF FACTORY 10 OR MORE EMPLOYEES DRAWING 10K HIREN CHHEDA 09821078457
From India, Mumbai
From India, Mumbai
Hello all,
The ESI ceiling limit has been revised from Rs. 7500/- to Rs. 10000/- with effect from 01.10.2006. The ESI will be exempted for those who are drawing a gross salary exceeding Rs. 10,000.
Best Regards,
V. Sathyanarayanan
From India, Madras
The ESI ceiling limit has been revised from Rs. 7500/- to Rs. 10000/- with effect from 01.10.2006. The ESI will be exempted for those who are drawing a gross salary exceeding Rs. 10,000.
Best Regards,
V. Sathyanarayanan
From India, Madras
Hi,
The ESI limit is 10k. If an employee is getting a salary of 10000 or more, ESI will not be deducted from his salary.
Sanjeev Kwatra
[IMG]https://www.citehr.com/misc.php?do=email_dev&email=c2FuamVldl9hYX Jlc3NAcmVkaWZmbWFpbC5jb20=[/IMG]
From India, Delhi
The ESI limit is 10k. If an employee is getting a salary of 10000 or more, ESI will not be deducted from his salary.
Sanjeev Kwatra
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From India, Delhi
hi, Esi Limit was less then or equle to 10000/- Gross. ESI Calculates on Gross Salary, Not on CTC. With Regards, Vishnu
From India, Hyderabad
From India, Hyderabad
Dear Madhumita,
The main point to be clarified for you is that the Rs 10,000 limit is applicable on Gross and not on CTC. If the CTC is Rs 10,000, then the gross will certainly come down to below Rs 10,000, and in such a case, you need to deduct ESI. Hope it is clear for you now.
Regards,
Amith R.
From India, Bangalore
The main point to be clarified for you is that the Rs 10,000 limit is applicable on Gross and not on CTC. If the CTC is Rs 10,000, then the gross will certainly come down to below Rs 10,000, and in such a case, you need to deduct ESI. Hope it is clear for you now.
Regards,
Amith R.
From India, Bangalore
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