2395
Any one can tell me that the recent amendment in ESIC deduction up to 250000/- gross is implemented. Regards, Vinod Kumar
From India, Delhi
From India, Delhi
Position at a progressive institute offering opportunity for advancement based upon achievement and contribution to the institution Willingness to work hard anywhere in the country.
From India
From India
Dear Friends,
ESIC calculation is purely based on gross Earned salary i.e 1.75% and 4.75% from employee and employer. There no such provision for additional deduction in ESIC.
If an employee salary is fixed 15000 pm he is eligible for ESIC benefits or else no.
Employee whose salary is fixed for less than 15000 and if he gets incentives or other performance based bonus even that need to be deducted while calculating ESIC.
Example:-
Employee is drawing fixed salary of Rs. 12000 and if he is getting an incentive of Rs. 8000 then ESI will be calculated on 20000 not 12000
Note: Annual bonus will not be added in ESIC calculation.
There even other types of ESIC calculation which are based on Fixed assets/Installation from outsiders which be calculated as below:-
Total Innovice ammount will be divided into 60% as material and 40% as labour. And this 40% labour amount will charge 6.5% as ESI amount.
Example: Assume Total Invoice value is 100000
60% material will be 60000
40% Labour will be 40000
Esic calculation will be on 40000*6.5% i.e Rs.2600/- this 2600 rupees is called as Job work which should be deducted from the invoice value and need to paid in Omitted wages option in ESIC portal.
Thanks and Regards,
JOYSON BAPTIST PEREIRA
Sr. HR Executive
Automobile
From India, Bangalore
ESIC calculation is purely based on gross Earned salary i.e 1.75% and 4.75% from employee and employer. There no such provision for additional deduction in ESIC.
If an employee salary is fixed 15000 pm he is eligible for ESIC benefits or else no.
Employee whose salary is fixed for less than 15000 and if he gets incentives or other performance based bonus even that need to be deducted while calculating ESIC.
Example:-
Employee is drawing fixed salary of Rs. 12000 and if he is getting an incentive of Rs. 8000 then ESI will be calculated on 20000 not 12000
Note: Annual bonus will not be added in ESIC calculation.
There even other types of ESIC calculation which are based on Fixed assets/Installation from outsiders which be calculated as below:-
Total Innovice ammount will be divided into 60% as material and 40% as labour. And this 40% labour amount will charge 6.5% as ESI amount.
Example: Assume Total Invoice value is 100000
60% material will be 60000
40% Labour will be 40000
Esic calculation will be on 40000*6.5% i.e Rs.2600/- this 2600 rupees is called as Job work which should be deducted from the invoice value and need to paid in Omitted wages option in ESIC portal.
Thanks and Regards,
JOYSON BAPTIST PEREIRA
Sr. HR Executive
Automobile
From India, Bangalore
Dear Mr. Pereira,
I have read information furnished by you regarding treating of 40% wages out of total bills as above for ESI compliance. However, for discussion sake I may inform your goodself that in support of your above information there may be old instructions issued by the ESIC authorities. But in actual practice, the same are not followed, resulting into claim on treating 100% amount of bill as wages for claiming of ESI contribution on such omitted wages.
In my opinion, the safe practice is that as an when the employer appoints any person as contractor or casual labour for such job work, then employer should insist for maintenance of Attendance & Wages Registers of such contract/casual employees and pay ESI contribution on actual wages.Payment of such ESI contribution on actual basis and making of compliance on actual basis in respect of such contractor/casual employees will also entitle such employees for various benefits under Employees' State Insurance Act, 1948 and rules/regulations framed thereunder.
Further, I think,the acceptance of 40% as wages out of a bill of job work as mentioned by you is also not within the jurisdiction of appropriate Social Security Officer of your area.
If you have any doubt, I think, you can confirm the position from appropriate Regional/Sub-Regional Office of ESIC.
With regards;
From India, Noida
I have read information furnished by you regarding treating of 40% wages out of total bills as above for ESI compliance. However, for discussion sake I may inform your goodself that in support of your above information there may be old instructions issued by the ESIC authorities. But in actual practice, the same are not followed, resulting into claim on treating 100% amount of bill as wages for claiming of ESI contribution on such omitted wages.
In my opinion, the safe practice is that as an when the employer appoints any person as contractor or casual labour for such job work, then employer should insist for maintenance of Attendance & Wages Registers of such contract/casual employees and pay ESI contribution on actual wages.Payment of such ESI contribution on actual basis and making of compliance on actual basis in respect of such contractor/casual employees will also entitle such employees for various benefits under Employees' State Insurance Act, 1948 and rules/regulations framed thereunder.
Further, I think,the acceptance of 40% as wages out of a bill of job work as mentioned by you is also not within the jurisdiction of appropriate Social Security Officer of your area.
If you have any doubt, I think, you can confirm the position from appropriate Regional/Sub-Regional Office of ESIC.
With regards;
From India, Noida
hi friends,
we have registered one of my employee in esi 4 months back, but recently we came to know that person already registered with esi and had pachan card also. this month i have inserted his IP in esi website. but problem is when we go for challan paying the two ip are displaying for contrubution. we are paying from three monyhs for new IP. but now i going to pay for his registred IP what he have on pachan card. what to do that another IP
From India, Madgaon
we have registered one of my employee in esi 4 months back, but recently we came to know that person already registered with esi and had pachan card also. this month i have inserted his IP in esi website. but problem is when we go for challan paying the two ip are displaying for contrubution. we are paying from three monyhs for new IP. but now i going to pay for his registred IP what he have on pachan card. what to do that another IP
From India, Madgaon
Dear Mr. Harsh,
Contract ESI contribution depend on Bill. If material and labour mention separately in the bill than ESI paid on labour part only @ 6.5% otherwise as per works it will be 40 % on total bill's 6.5%.
And if in case the contractor is not covered by ESI and the factory of principal employer is covered under the act, then these employess would be deemed to be covered under principal employer, so the principal employer will deduct 6.5% ( 1.75% employee + 4.75% employer) and pay to ESIC.
You said me about the registers for employees what if the contract is only for a day/week
From India, Bangalore
Contract ESI contribution depend on Bill. If material and labour mention separately in the bill than ESI paid on labour part only @ 6.5% otherwise as per works it will be 40 % on total bill's 6.5%.
And if in case the contractor is not covered by ESI and the factory of principal employer is covered under the act, then these employess would be deemed to be covered under principal employer, so the principal employer will deduct 6.5% ( 1.75% employee + 4.75% employer) and pay to ESIC.
You said me about the registers for employees what if the contract is only for a day/week
From India, Bangalore
What if we pay ESI for an employee earning more than 15,000 p.m. from the start of contribution period. Can the ESIC say that he is exempt employee, hence not elgible for ESI benefits !
From India, Jamnagar
From India, Jamnagar
Sir,
As an employer or his HR dealing with ESI matters, one may cover any employee under ESI Act, 1948 and rules/regulations framed thereunder. But, at the time of claiming of cash benefits the eligibility of insured persons is verified by the appropriate Branch Office of ESIC. If it is found that the said employee was not entitled for coverage due to the reasons of wages exceeding to coverage limit as laid down in ESI (Central) Rules, 1952, then no benefits are payable and in such eventuality the benefits availed earlier wrongly are all recoverable under section 70 of said Act.
In addition, the employee or employer are liable for prosecution under section 84 of said Act. The said employee can also be barred for receiving any benefits for certain periods under Rule 62 of ESI (Central) Rules, 1952.
Please also refer to Regulation 40 of ESI (General) Regulations, 1952 regarding Refund of contribution erroneously paid.
From India, Noida
As an employer or his HR dealing with ESI matters, one may cover any employee under ESI Act, 1948 and rules/regulations framed thereunder. But, at the time of claiming of cash benefits the eligibility of insured persons is verified by the appropriate Branch Office of ESIC. If it is found that the said employee was not entitled for coverage due to the reasons of wages exceeding to coverage limit as laid down in ESI (Central) Rules, 1952, then no benefits are payable and in such eventuality the benefits availed earlier wrongly are all recoverable under section 70 of said Act.
In addition, the employee or employer are liable for prosecution under section 84 of said Act. The said employee can also be barred for receiving any benefits for certain periods under Rule 62 of ESI (Central) Rules, 1952.
Please also refer to Regulation 40 of ESI (General) Regulations, 1952 regarding Refund of contribution erroneously paid.
From India, Noida
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PAYMENT OF WAGES ACT 2009.doc