I am working for Pvt Ltd Company since 28th June 2013 to till date. Its a company providing customer service for its clients like Time Warner Cable, Samsung via Chat support and emaill support. While joining the company, my take home salary was 13k per month, so I was covered under ESIC, now our salaries are revised in May 2014 and my take home salary is 16k, so an amount of 800/- for Mediclaim, but still I am being charged with ESIC, is this correct? It happening with all of them from our batch who joined with me. Please suggest something on this...
Thanks
SUNIL

From India, Hyderabad
Sir,
1. You have not disclosed the view of your HR or officer who is attending to the work of ESI deductions in your unit for continuation of such ESI contribution deductions. You should discuss the matter with him and ascertain as to what are the reasons for continuation of such deductions under ESI Act.
2. Kindly confirm whether Rs.16000/- include overtime or not. On the basis of amount of OT the employer cannot exempt any person from the purview of ESI Act.
3. However, If the facts as mentioned by you that your salary/wages was increased in May, 2014, then I think the deductions of ESI contributions are correct and the same will continue till the close of present contribution period i.e. upto September, 2014 (if the wage ceiling is not enhanced by the appropriate government by that month). Please see proviso to section 2(9) of ESI Act, 1948 and Rule 50 of ESI (Central) Rules, 1952 and Regulation 4 of ESI (General) Regulaltions, 1952.

From India, Noida
Dear Mr.Sunil Though your slary is crossed Rs.15000/-upto end of the contribution period(that is Apr14 to Sep14) you are member in ESI. From Oct14 onwards you are relieved from ESI V.SUBBARAO
From India, Madras
Dear Sunil,
It appears that your salary was revised with effect from May-14. Under the circumstances, you will continue to be under ESI till September -14. Please note that ESI contribution period is April to September under the ESI Act and you will be out of ESI on and from 1st October-14 since you have crossed the coverage limit of salary Rs 15,000/ per month but you may avail of Medical benefit till March-15 under ESI Scheme (i.e. next contribution period commencing from October- to March-15).
In the light of the above observation, your employer could have covered you under the Mediclaim Scheme from April-15.
Regards,
Sibabrata Majumdar
Management consultant Legal & HR
Kolkata, sibabrata.majumdar@gmail com

From India, Calcutta
ESI is Statutory. It is a must.
Mediclaim is your company policy for the benefit of employee.
You can continue the mediclaim if you want. otherwise you can ask your employer not deduct the contribution for mediclaim policy

From India, Hyderabad
Subharao and Majumdar has given you the reply aptly, since your increment happened in May the Contributory period of ESI is April to Sept so you have to contribute till Sept.
From India, Ahmadabad
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