Hello, If the Gross salary changes in any month, then does it affect the ESIC contribution.. Also, i want to know, how to structure the gross salary, if we want to avoid the esic value for employees with gross salary <=Rs.21000/- , along with same net take home salary .. What are the adjustments that can be done considering the deduction and gross part
From India, Nagpur
From India, Nagpur
Employee contribution is @ 1.75% of gross salary, hence it may change every month. This is very basic info. You can’t avoid ESIC of employees drawing @ Rs. 21000 or less per month Period.
From India, Mumbai
264From India, Mumbai
The ESI Act envisages splitting up of an year into two contribution periods ie from 1st April to 30th September and again from 1st October to 31st March. If the salary limit is crossed during a contribution period, the contribution has to be continued till the current contribution period is over and there cannot be any in between discontinuance. So pl complete the contribution period and you can avail the ESI benefit till the corresponding benefit period is over (1st Jan to 30th June & 1st July to 31st December, as the case may be.
From India, Mumbai
From India, Mumbai
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Gross Salary(1).xls