Hi,
As per ESI rules, we need to register the employees who are getting a gross salary up to Rs.10000/- and we need to deduct 1.75% from their gross salary as ESI.
My question is, if an employee got an increment in his salary and now he is getting more than Rs.10000/-. Shall we deduct the ESI again from his salary???
Please help us in this regard....

From India, Thiruvananthapuram
From the month of April to September if any change happen the effect will come from October to March.
if a employee earning 9000 in april to june
and in the month of July his salary is 10500
the from the month of october he will not pay ESI
Thanks
Shashi

From India, New Delhi
Yes,
if any employee is getting salary less then 10000/- and he is entitled for esi and during the period of contribution i,e apr to sep or oct to mar if his salary will be increased then contribution will be paid on higher salary up to completion of contribution period.
(sahil)

From India, Delhi
In continouation to the earlier replies:
ESI
Contribution Period: Apr - Sep I Oct - Mar (Financial Year)
Benifit Period : Jan - Jun I Jul - Dec (Calender Year)
In case if a employee's salary has been revised in the month of May (from 9500 to 10500), then he is supposed to contributed til Sep in his actual gross (i.e. 10500) and vise versa.
Then he can avail the benifits of ESI til next jun since he has contributed till oct.
I would resut you to go thru the ESI act for better clarification.
Hari R

From India, Madras
ESI has two contribution periods:
1.From April to September
2.From October to March
If an employee drawing less than Rs.10000 in the beginning of a contribution period (1)and getting raise to Rs.11000 by way of increment in the middle say May, esi deduction for him is to be made on total salary whatever he receives till the contribution period ends say upto September. From October you need not deduct esi for him.

From India, Madras
Hi
If an employee is getting increment and his salary is increased and getting more then 10000/- then the esic deduction will be there for 3 months.
For Ex - if an employee got increment of Rs.1000/- in month of Dec then his esic deduction will be done till march salary. then from april salary he will be out of deduction.
Hetal......................:o

From India, Pune
Dear sir's, In continuation of the same subject I would like to put my question also to my seniors. I am working in a construction company. As u all know that here workers are not taken as permanent. Some of them will work six month or one year. Workers mainly do not want to give their cont. because they know that they will not get any refund unlike P.F. unless they face any problem {accident, medical}. Can anybody suggest any other option. We have group insurance for our workmens. Please reply.
From India, Calcutta
Maximum limit for ESIC deduction is upto Rs. 10,000/- pm (gross salary). Above 10,000/- the person automatically comes out of ESIC coverage. Thus ESIC wont be deducted for the person earning more than Rs. 10,000/- pm (gross salary).
The slab period for ESIC deduction is from April - September and October - March.
The person who earns salary of more than 10,000/- from May, the deduction period comes under April - September slab thus ESIC benefit is effective upto September. From October onwards the person comes out of ESIC coverage and is not entitled to the benefit of the same.

From India, Mumbai
As per proviso to Section 2(9) he is continously covered under the Act till the end of the contribution period irrespective of increase in salary in the middle of the contribution period. Under the ESI Act two contribution periods are there. One from April to Sep and another from Oct to Mar. For example a person crosses the limit of Rs. 10000/- after April say from May he is continuously covered till sept and liable to pay contributions on the enhanced salary only. He will be exempted from payment of contributions from Oct onwards but still entitled to get benefits till june following year EXCEPT accident benefit. Rest of other benefits eligible. For acciden benefit only he must be an employee as on the date of accident as per section 2(8) of the Act.
sanagapalli

From India, Hyderabad
ESI has two contribution periods:
1.From April to September
2.From October to March
If an employee drawing less than Rs.10000 in the beginning of a contribution period (1)and getting raise to Rs.11000 by way of increment in the middle say May, esi deduction for him is to be made on upto only 10000/- that is Rs.175/- upto septmber or closing period.
pardeep kumar verma
asst.manager - hr

From India, Jaipur
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