Respected All, Is ESI contribution calculated on overtime wages under The ESI Act, 1948? Regards, Pratul L.
From India, Nagpur
2From India, Nagpur
When ESI contribution of employees is calculated, the Over time for the month should be included even if the gross salary exceeds Rs.15000/- p.m.
From United Kingdom, Oxford
From United Kingdom, Oxford
For the purpose of coverage overtime wages is not taken into account whereas for calculating contribution payable by a covered employee, overtime wages will be considered as wages earned.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
hi,
i have never read or heard about ESI calculation on the overtime wage. I personally feel we dont consider O.T wages under ESI. Because, over time payment is consider "wage" not "salary".
--
Vishwanath
From India, Hyderabad
i have never read or heard about ESI calculation on the overtime wage. I personally feel we dont consider O.T wages under ESI. Because, over time payment is consider "wage" not "salary".
--
Vishwanath
From India, Hyderabad
Hi !! As Madhu said, to find out ESI eligiblity of an employee OT will not be considered. But for paying the contribution OT will be considered and amount will be paid on wages + OT. regards ravindra
From India, Bangalore
From India, Bangalore
If an employee is getting less than Rs 15000 a month, he will be under ESI even if monthly wages exceeds after including OT earning. But when ESI contribution is paid for the employee it will be calculated on whole earning (wages+OT)
regards
From India, Bangalore
regards
From India, Bangalore
ESI on overtime amount should be deducted as employee is to be covered under insurance cover during his/her extra hours duty. So all employees elligible under ESI act, if do overtime then ESI should be deducted from overtime amount. If an employee get injured during his/her extra duty hours then he/she can get benefit of employment injury. But overtime is not covered under term of 'wages' under ESIC Act (Bharat Commerece and Industries Ltd Vs Regional Director, ESIC,(2005) LLJ482 (MP). Therefore overtime should not taken as wages for checking elligibility of employee for ESI.
Regards,
Anuj
From India, Lucknow
Regards,
Anuj
From India, Lucknow
Over time including in ESI,
suppose employee is geeting Fix gross salary 20000 and for any respective month employee get 4000 OT
so for that month employee get 024000 salary (20000 fixed gross salary +4000 over time)
if ESI deducted then on which amount 21000 or 24000?
From India, Bangalore
suppose employee is geeting Fix gross salary 20000 and for any respective month employee get 4000 OT
so for that month employee get 024000 salary (20000 fixed gross salary +4000 over time)
if ESI deducted then on which amount 21000 or 24000?
From India, Bangalore
1. Sir, contribution under ESI Act, 1948 is to be deducted on total wages of Rs. 24,000/-, which also include Over Time as per case mentioned by you as above.
2. If the person is covered as employee, the amount of Overtime is to be essentially considered for compliance but on adding OT amount, the employee cannot be declared as uncovered. Please see section 2(9) of said Act.
From India, Noida
2. If the person is covered as employee, the amount of Overtime is to be essentially considered for compliance but on adding OT amount, the employee cannot be declared as uncovered. Please see section 2(9) of said Act.
From India, Noida
Dear All,
as per Sec.2(22) of the ESI Act Overtime is a part of Wage and overtime wages is not a regular earn wage. so please do not confuse and deduct Esic from there and deposit to Esic without hesitation.
but you are confuse that if gross wages become more than applicability than what you will do? so please do not be confuse. once a employee covered under esic and once his contribution start to contributed to esic than you can not discard his name from esic before completion of his contribution period (April to Sep and Oct to March).
Thanks & Regards
Ashish Shaw
From India, Kolkata
as per Sec.2(22) of the ESI Act Overtime is a part of Wage and overtime wages is not a regular earn wage. so please do not confuse and deduct Esic from there and deposit to Esic without hesitation.
but you are confuse that if gross wages become more than applicability than what you will do? so please do not be confuse. once a employee covered under esic and once his contribution start to contributed to esic than you can not discard his name from esic before completion of his contribution period (April to Sep and Oct to March).
Thanks & Regards
Ashish Shaw
From India, Kolkata
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
ESI contribution rates lowering.pdf