Dear All,
I just Wanted to confirm while making contribution for ESIC do we have to take care for no of days present also or it would be the same.
For Example if a employee is present for 21 days in a month and his salary is 10000 so we will calculate esic on 10000 according to 21+Sunday and also want to know about 31 or 28 days month.
Regards
Ritika
From India, Delhi
2I just Wanted to confirm while making contribution for ESIC do we have to take care for no of days present also or it would be the same.
For Example if a employee is present for 21 days in a month and his salary is 10000 so we will calculate esic on 10000 according to 21+Sunday and also want to know about 31 or 28 days month.
Regards
Ritika
From India, Delhi
Dear Member,
1. You are required to deduct the contribution from the wages of employees paid or payable @ 1.75%. The number of days relevant are for which the wages are paid or payable. Therefore, in addition to the number of days on which the employee was present, the days on which earned leave/casual leaves are sanctioned with wages etc. are also to be taken into account.
2. The numbers of days for which wages are paid or payable should be correctly indicated in the records i.e. in the Employees' Contribution Register or online records generated because on the basis of such records, the eligibility of the employee to receive various benefits under ESI Act and rules/regulations framed thereunder is determined. In case you indicated less number of days, the employee can be debarred or not eligible for certain benefits and in case you mentioned in excess, it will be wrong statement for the purposes of entitlement of benefits as calculated in ESIC Branch Office. If any amount is paid wrongly to insured person, due to mentioning such wrong number of days, the same will be objectionable as well as punishable under section 84 of said Act.
3. Further the terms "average daily wages" or 'standard benefit rate" etc. are determined on the basis of records as furnished by you as mentioned in paras above.Please see definitions of such words under Rule 2 of ESI (Central) Rules, 1952.
4. I will suggest you to please also download relevant material from official website of ESIC or you can also discuss the issue with the appropriate Branch Office of ESIC of your area in case you have any doubt on such procedural aspects.
From India, Noida
1. You are required to deduct the contribution from the wages of employees paid or payable @ 1.75%. The number of days relevant are for which the wages are paid or payable. Therefore, in addition to the number of days on which the employee was present, the days on which earned leave/casual leaves are sanctioned with wages etc. are also to be taken into account.
2. The numbers of days for which wages are paid or payable should be correctly indicated in the records i.e. in the Employees' Contribution Register or online records generated because on the basis of such records, the eligibility of the employee to receive various benefits under ESI Act and rules/regulations framed thereunder is determined. In case you indicated less number of days, the employee can be debarred or not eligible for certain benefits and in case you mentioned in excess, it will be wrong statement for the purposes of entitlement of benefits as calculated in ESIC Branch Office. If any amount is paid wrongly to insured person, due to mentioning such wrong number of days, the same will be objectionable as well as punishable under section 84 of said Act.
3. Further the terms "average daily wages" or 'standard benefit rate" etc. are determined on the basis of records as furnished by you as mentioned in paras above.Please see definitions of such words under Rule 2 of ESI (Central) Rules, 1952.
4. I will suggest you to please also download relevant material from official website of ESIC or you can also discuss the issue with the appropriate Branch Office of ESIC of your area in case you have any doubt on such procedural aspects.
From India, Noida
Hi,
It is very simple as below.
1.You have to contribute on gross salary earned in the month.
2. If the salary is fixed per month basis- mention the days you paid inclusive of sundays or holidays excluding loss pay/absent days.
3. If it is daily basis- mention the days only.
Further, you had a query- if his salary 10k per month, you divide the salary by the days in the month(whether 28/30/31) and you will arrive a days salary and multiply it to days payable excluding LOP days.
regards,
Puru
From India, Bangalore
It is very simple as below.
1.You have to contribute on gross salary earned in the month.
2. If the salary is fixed per month basis- mention the days you paid inclusive of sundays or holidays excluding loss pay/absent days.
3. If it is daily basis- mention the days only.
Further, you had a query- if his salary 10k per month, you divide the salary by the days in the month(whether 28/30/31) and you will arrive a days salary and multiply it to days payable excluding LOP days.
regards,
Puru
From India, Bangalore
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.
ESIC-Contributi on-Transfer-For m.pdf