Dear members,
Do the ESI rules specify that once a ESI deduction is made from an employees salary, you have to mandatorily deduct it for six months? The reason for my query - we have recently announced increments at our workplace. This should ideally have been done end of march but was done End April. Hence we paid the ESI amount based on previous years salary. However, after the increment a few employees have crossed the ESI threshhold and are not liable for this. However, we have been informed that we need to deduct the ESI amount for atleast six months before we can stop.
Can any of you throw more light on this?
Thanks and regards
From India, Bangalore
1Do the ESI rules specify that once a ESI deduction is made from an employees salary, you have to mandatorily deduct it for six months? The reason for my query - we have recently announced increments at our workplace. This should ideally have been done end of march but was done End April. Hence we paid the ESI amount based on previous years salary. However, after the increment a few employees have crossed the ESI threshhold and are not liable for this. However, we have been informed that we need to deduct the ESI amount for atleast six months before we can stop.
Can any of you throw more light on this?
Thanks and regards
From India, Bangalore
Dear Yoganand,
ESI have two contribution cycle of six month from April to September and from October to March.
Your increment is applicable from April and some of your employees’ salary exceeds the contribution limit. Still you have to contribute till September and they can avail benefit till such date.
From India, Bhubaneswar
ESI have two contribution cycle of six month from April to September and from October to March.
Your increment is applicable from April and some of your employees’ salary exceeds the contribution limit. Still you have to contribute till September and they can avail benefit till such date.
From India, Bhubaneswar
Agree with Shaikh Abeden you have to contribute till end of current contribution cycle.
White Eagle
From India, Hyderabad
White Eagle
From India, Hyderabad
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