Dear All, In my company we are calculating monthly wages /26, but I have doubt in ESI contribution in month because of one of the employees attained 28 working days and his salary exceeding 21000 then how to calculate his esi contribution,
Pl. tell me anyone thanking you....
From India, Visakhapatnam
2Pl. tell me anyone thanking you....
From India, Visakhapatnam
If the total earnings excluding Overtime wages is not more than Rs 21000, he should be covered under ESI. If you pay only for 26 days but for one employee you have paid for 28 days, it should be regarded as overtime payment or payment for two days in excess of normal working days in a month. If the notional wages for 26 days is not more than Rs 21000, cover him under ESI and deduct and contribute ESI on the total earnings (including the payments for overtime or two days extra worked)
From India, Kannur
From India, Kannur
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ESI Circular - New Salary ceiling of Rs. 15,000 effective May 1, 2010.pdf
Salary Breakup with ESI.xls
ESI - Allowances Rules - Salary.docx