1. An employee whose wages exceed the ceiling limit (Rs. 15000/- at present), continues to be an employee till the end of the relevant contribution period.(Proviso to Sec. 2(9) of ESI Act.). Hence, contribution is to be paid till the end of March 2011.
2. Though there is wage ceiling for coverage of an employee, there is no ceiling in the definition wages under Sec. 2(22). "Wages means all remuneration paid or payable to an employee..." Since a person drawing above 15000/- is also an employee till the end of March 2011, all remuneration drawn by him i.e. 18,000/- is wages. Hence contribution is to be paid on the total wages eaerned by him and not to be restricted to 15,000/- as suggested by a few members.
I suggest members to give their replies only they are sure about its correctness, and if possible please quote the rule position. Wrong replies amount to only misleading others.
From India, Hyderabad
102. Though there is wage ceiling for coverage of an employee, there is no ceiling in the definition wages under Sec. 2(22). "Wages means all remuneration paid or payable to an employee..." Since a person drawing above 15000/- is also an employee till the end of March 2011, all remuneration drawn by him i.e. 18,000/- is wages. Hence contribution is to be paid on the total wages eaerned by him and not to be restricted to 15,000/- as suggested by a few members.
I suggest members to give their replies only they are sure about its correctness, and if possible please quote the rule position. Wrong replies amount to only misleading others.
From India, Hyderabad
Notification – New Delhi , 20th April, 2010
And whereas the copies of the said Gazette were made available to the public on 27th February, 2010;
And whereas, objections and suggestions received from persons likely to be affected thereby have been considered by the Government;
Now, therefore, in exercise of powers conferred by section 95 of the Employees’ State Insurance Act, 1948, the Central Government, after consultation with Employees’ State Insurance Corporation, hereby makes the following rules further to amend the Employees’ State Insurance (Central) Rules, 1950, namely:?
1. These Rules may be called the Employees’ State Insurance (Central) Amendment Rules, 2010.
2. These shall come into force from the 1st day of May, 2010.
3. In the Employees’ State Insurance (Central) Rules, 1950, in Rule 50, for the words “ten thousand”, wherever they occur, the words “fifteen thousand” shall be substituted.
[F. No. S-38025/04/2010 -SS-I]
S. D. XAVIER
Under Secretary
From India, Pune
Mr. Sukumar u r HR. Manager so, u have to knowlege of these basics. Please ensure don’t give opinion. In compliance for opinion has no place. Remember this is my expierience of 8 months.
From India, Delhi
From India, Delhi
Dear all, My question here is how many of you are actually deducting ESIC contribution from employee once he is out of ESIC and paying it.
From India, Pune
From India, Pune
Dear Mr. Ashok,
The block period of ESIC is April to September & October to March of a financial year. In the event of employee crossing the ceiling limit of Rs.15, 000/- in the above referred block periods, ESIC has to be deducted till the end of the block period.
In your case the employee has drawn more wages from Nov, so the ESIC to be deducted till March. After March no need deduct provided the concerned employee should draw monthly emoluments more than Rs.15000/-
Regards.
RAVI
09769987407
From India, Mumbai
The block period of ESIC is April to September & October to March of a financial year. In the event of employee crossing the ceiling limit of Rs.15, 000/- in the above referred block periods, ESIC has to be deducted till the end of the block period.
In your case the employee has drawn more wages from Nov, so the ESIC to be deducted till March. After March no need deduct provided the concerned employee should draw monthly emoluments more than Rs.15000/-
Regards.
RAVI
09769987407
From India, Mumbai
Dear Mr. Ashok, As per the ESI Act, You should deduct 1.75%from the Ceiling amount Rs.15000, and pay till Contribution period ends March2011. Now you will be clear, Thanx Pushparaj
From India, Madras
From India, Madras
Though there is a wage ceiling limit for coverage of an employee, there is no ceiling
limit in the definition of wages for payment of contribution. Hence contribution is
payable on the total wages without any ceiling limit. As the cash benefit is
regulated on the average daily wages in a contribution period, such employee gets
fitted in to higher wage slab in the standard benefit table in view of payment of
contribution on the total wages. (source - FAQ on ESIC- maharashtra web site)
From India, Mumbai
limit in the definition of wages for payment of contribution. Hence contribution is
payable on the total wages without any ceiling limit. As the cash benefit is
regulated on the average daily wages in a contribution period, such employee gets
fitted in to higher wage slab in the standard benefit table in view of payment of
contribution on the total wages. (source - FAQ on ESIC- maharashtra web site)
From India, Mumbai
Friends. Cannot exclude employees from ESIC till completion of ongoing contribution period, if already started. Rate of contribution for shall be actual gross salary but not 15k. Anil Richhariya
From India, Gurgaon
From India, Gurgaon
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.
ESI Circular - New Salary ceiling of Rs. 15,000 effective May 1, 2010.pdf
Salary Breakup with ESI.xls
ESI - Allowances Rules - Salary.docx