Dear Friend,
For exemption the gross salary excluding of overtime is considered. Hence if an employee draw salary inclusive of overtime is more than Rs.15,000/- ESI has to be deducted.
Ex: Salary Rs.14,400/- - esic applicable
Salary Rs.15,100/- Inclusive of overtime esic applicable
Salary Rs.15,001/- esic not applicable.
Hope it is clear to all now.
regards,
satishkumar
From India, Mumbai
For exemption the gross salary excluding of overtime is considered. Hence if an employee draw salary inclusive of overtime is more than Rs.15,000/- ESI has to be deducted.
Ex: Salary Rs.14,400/- - esic applicable
Salary Rs.15,100/- Inclusive of overtime esic applicable
Salary Rs.15,001/- esic not applicable.
Hope it is clear to all now.
regards,
satishkumar
From India, Mumbai
Hello
Esi is mandatory to all company's working with more than 20 or 10 employees with or with out power.
Esi is calculated on gross salary. If gross is below 15000 Esi is applicable.
Gross salary does not include OT.
OT is paid later if he works over time more than 8 HR.
Yes OT is also included while calculating Esi, even if gross salary cross 15000 due to OT.
sanjeev
From India
1Esi is mandatory to all company's working with more than 20 or 10 employees with or with out power.
Esi is calculated on gross salary. If gross is below 15000 Esi is applicable.
Gross salary does not include OT.
OT is paid later if he works over time more than 8 HR.
Yes OT is also included while calculating Esi, even if gross salary cross 15000 due to OT.
sanjeev
From India
Anil sir, There is no notification regarding ESIC upto 15k including OT. Its depends on various companys only. i posted this query as per my company norms
From India, Hyderabad
From India, Hyderabad
Dear all, I wold like to know that, can a staff employee approch to Labour Office to get their full & final settlement if, he have been dismissed from service by employer Tks Best Dulari
From India, Delhi
From India, Delhi
hi ,
how can u say that so confidently? OT is a variable component in a salary structure.
u mean to say For an example: if some one is getting gross salary less than 15000/- you will deduct esi and for the same person if it exceeds 15000/- including overtime you will not deduct ESI? and in next month if again Gross salary including overtime falls below 15000/- will u deduct?
Please clarify.
Regards,
Priya
From India, Hapur
how can u say that so confidently? OT is a variable component in a salary structure.
u mean to say For an example: if some one is getting gross salary less than 15000/- you will deduct esi and for the same person if it exceeds 15000/- including overtime you will not deduct ESI? and in next month if again Gross salary including overtime falls below 15000/- will u deduct?
Please clarify.
Regards,
Priya
From India, Hapur
Dear Friends,
Yes, ESI contribution is to be paid on OT also. One of my friend in this site has said that he is deducting ESI only for Rs. 15,000/.(Inclusive of OT). My friend, even if your gross salary is Rs. 14999 + Ot 7000, you have to pay ESI on 21,999/. OT amount should not be taken for ESI Ceiling for coverage. Only the gross amount except any Washing allowance & reimbursement of actual conveyance to commute between work place and res. is to be taken.
Hope this clears the doubts of my freind.
G.K.Manjunath
Manager-HR
From India, Bangalore
Yes, ESI contribution is to be paid on OT also. One of my friend in this site has said that he is deducting ESI only for Rs. 15,000/.(Inclusive of OT). My friend, even if your gross salary is Rs. 14999 + Ot 7000, you have to pay ESI on 21,999/. OT amount should not be taken for ESI Ceiling for coverage. Only the gross amount except any Washing allowance & reimbursement of actual conveyance to commute between work place and res. is to be taken.
Hope this clears the doubts of my freind.
G.K.Manjunath
Manager-HR
From India, Bangalore
Dear Mr. Ravi,
You have asked if any employee meet with an accident during the course of OT who will take care of his treatment etc.
Immediately after the accident, the Management has to provide the first aid. We have to send the Form 12(Accident report) to the Local Office and the dispensary. In the Report you have to fill up the reason for alloting OT(exigency of work). Kindly see the column 18 of the Form No. 12.- In case the accident happened while meeting an emergency, Please state.The Injured employee will get all the benefit as if a normal workman get the benefit. Are we not paying contribution on OT also?
Hope this clarifies you.
G.K.Manjunath
Manager-HR
From India, Bangalore
You have asked if any employee meet with an accident during the course of OT who will take care of his treatment etc.
Immediately after the accident, the Management has to provide the first aid. We have to send the Form 12(Accident report) to the Local Office and the dispensary. In the Report you have to fill up the reason for alloting OT(exigency of work). Kindly see the column 18 of the Form No. 12.- In case the accident happened while meeting an emergency, Please state.The Injured employee will get all the benefit as if a normal workman get the benefit. Are we not paying contribution on OT also?
Hope this clarifies you.
G.K.Manjunath
Manager-HR
From India, Bangalore
Hi,
ESI should be deducted on total salary earning (that includs OT earning Also)
But, ESI scheem will be applicable to those employee, whose fixed salary is below Rs.15000/- per months excluding OT amout.
Ex: (1) If total salary of Person is Rs.14000/-, his ot amount is Rs.2500/-, then his total earning will become Rs.16500/-, he will come under ESI scheem, and we have to deduct ESI on whole Rs. 16500/-, not up to Rs.15000/-
Ex: (2) If total salary of Person is Rs.16000/- excluding all his OT amount, if person takes some days leave in that particular month, then if he get that particular month salary below Rs.15000/-, then we should not deduct ESI on his salary, because he will not come under ESI scheem.
Dear friends, i have shared my openion, is there anything wrong in this, kindly revert me back
Regards,
Asha
From India, Bangalore
ESI should be deducted on total salary earning (that includs OT earning Also)
But, ESI scheem will be applicable to those employee, whose fixed salary is below Rs.15000/- per months excluding OT amout.
Ex: (1) If total salary of Person is Rs.14000/-, his ot amount is Rs.2500/-, then his total earning will become Rs.16500/-, he will come under ESI scheem, and we have to deduct ESI on whole Rs. 16500/-, not up to Rs.15000/-
Ex: (2) If total salary of Person is Rs.16000/- excluding all his OT amount, if person takes some days leave in that particular month, then if he get that particular month salary below Rs.15000/-, then we should not deduct ESI on his salary, because he will not come under ESI scheem.
Dear friends, i have shared my openion, is there anything wrong in this, kindly revert me back
Regards,
Asha
From India, Bangalore
Dear All
ESIC should be deducted for all allowances exclusive of Uniform/Washing Allowances, so you have to deduct for all allowances.
Thanks & Regards
B. RAVI MURUGAN M.A., LLB., PGDLA.,
Labour Law Professional.
ESIC should be deducted for all allowances exclusive of Uniform/Washing Allowances, so you have to deduct for all allowances.
Thanks & Regards
B. RAVI MURUGAN M.A., LLB., PGDLA.,
Labour Law Professional.
Dear All
ESIC deduction is mendatory those r getting salary/ wages up to Rs15000/- pm fixed, if any employee r getting the any type of incentive and over time such as related to production i.e (salary Rs15000+ Ot Rs2000/- +prod. inc.Rs 2500/- =total 19500/-) now the ESIC should be calculate on 19500/- (both of contributions).
If employee r getting Rs !5010/- Gross p.m
There is no ESIC applicabe on any head
D N Sharma -ggn
From India, Delhi
ESIC deduction is mendatory those r getting salary/ wages up to Rs15000/- pm fixed, if any employee r getting the any type of incentive and over time such as related to production i.e (salary Rs15000+ Ot Rs2000/- +prod. inc.Rs 2500/- =total 19500/-) now the ESIC should be calculate on 19500/- (both of contributions).
If employee r getting Rs !5010/- Gross p.m
There is no ESIC applicabe on any head
D N Sharma -ggn
From India, Delhi
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ESI contribution rates lowering.pdf