Dear Balaji,
We faced this problem in our company a year ago.
We have keep paying till September if you have already paid for April.
However the amount to be considered for deduction is debatable.
As a precaution we paid for the revised amount and not limited to Rs.10,000/-. The difference for 8 of such employees was around Rs.2,500/- only.
Therefore if the number of employees are less you can go ahead and pay up for revised amount to avoid delay. If the number is huge - wait till I get a legal opinion on this. :p
Warm Regards
Sandeep Powar
1We faced this problem in our company a year ago.
We have keep paying till September if you have already paid for April.
However the amount to be considered for deduction is debatable.
As a precaution we paid for the revised amount and not limited to Rs.10,000/-. The difference for 8 of such employees was around Rs.2,500/- only.
Therefore if the number of employees are less you can go ahead and pay up for revised amount to avoid delay. If the number is huge - wait till I get a legal opinion on this. :p
Warm Regards
Sandeep Powar
RAJEEV IS CORRECT ESIC DEDUCTION WILL BE ON INCREASED GROSS UP TO THE END OF SEPT OR MARCH OF THE RELEVANT HALF YEAR END. Kashi
From India, Benaulim
From India, Benaulim
Friends
Regarding the question of Mr Balaji, I find some answers wrong and some correct. Let me explain the legal position.
"Employee" for the purpose of compliance under ESI Act is one whoses wage is 10,000 or below that, provided that if wage goes beyond this threshold during a particular Contribution period (April to September and October to March), he will continue to be Employee during that particular contribution period, and not lthereafter - Provision to Sec 2 (9) (b) to ESI Act.
Contirubtion need to be paid on Wage as defined in Sec 2 (22). There is no limit provided in the definition.
Hence contribution need to be paid on actual wage paid or payable during the currency of Contribution period, (not merely for Rs 10,000) if the Employee was drawing Rs 10,000 or below in the commencement of the Contribution period that is April or October. You can not restrict to 4.75%/1.75% of Rs 10,000.
Good HR man should ensure that wage increase/increment etc Start from April or October, in case of those whoes wage is below 10,000 pm, to avoid this.
O. Abdul Hameed
Formerly Additional Commissioner
ESI Corporation.
From India, Coimbatore
Regarding the question of Mr Balaji, I find some answers wrong and some correct. Let me explain the legal position.
"Employee" for the purpose of compliance under ESI Act is one whoses wage is 10,000 or below that, provided that if wage goes beyond this threshold during a particular Contribution period (April to September and October to March), he will continue to be Employee during that particular contribution period, and not lthereafter - Provision to Sec 2 (9) (b) to ESI Act.
Contirubtion need to be paid on Wage as defined in Sec 2 (22). There is no limit provided in the definition.
Hence contribution need to be paid on actual wage paid or payable during the currency of Contribution period, (not merely for Rs 10,000) if the Employee was drawing Rs 10,000 or below in the commencement of the Contribution period that is April or October. You can not restrict to 4.75%/1.75% of Rs 10,000.
Good HR man should ensure that wage increase/increment etc Start from April or October, in case of those whoes wage is below 10,000 pm, to avoid this.
O. Abdul Hameed
Formerly Additional Commissioner
ESI Corporation.
From India, Coimbatore
hi Suman,
For your information, You was added this sheet was only mention contribution period employee ,whose salary below 10000,but as per u r information if gross salary increase in middle of contribution then total contribution amount which is also raised automatically within end of contribution period.
From India, Pune
For your information, You was added this sheet was only mention contribution period employee ,whose salary below 10000,but as per u r information if gross salary increase in middle of contribution then total contribution amount which is also raised automatically within end of contribution period.
From India, Pune
Hi All,
The Esi Contribution will be calculated on the Gross Wages (Whether 11500/- or it is 115000/-) and will continue till September or April of the corresponding Year..
Regards,
Jenender Chawla
9711304112
From India, New Delhi
The Esi Contribution will be calculated on the Gross Wages (Whether 11500/- or it is 115000/-) and will continue till September or April of the corresponding Year..
Regards,
Jenender Chawla
9711304112
From India, New Delhi
Dear Friend,
If the employee salary excedes more than Rs.10,000/- per month, the employee is exempted from the scheme.
Relating to your querry in the contribution period the employee salary excedes Rs.10,000/- you will continue such employee up to the period.
The contribution is to be deducted as 1.75 % on Rs.11500/- till the end of the period i.e.up to September.
This is for your Kind information.
Regards,
P.V.Rama Rao
From India, Hyderabad
If the employee salary excedes more than Rs.10,000/- per month, the employee is exempted from the scheme.
Relating to your querry in the contribution period the employee salary excedes Rs.10,000/- you will continue such employee up to the period.
The contribution is to be deducted as 1.75 % on Rs.11500/- till the end of the period i.e.up to September.
This is for your Kind information.
Regards,
P.V.Rama Rao
From India, Hyderabad
Dear All,
For the benefit of all I am giving the link related to ESI. The link can be followed for more enquiry.
E S I Act
From India, Delhi
For the benefit of all I am giving the link related to ESI. The link can be followed for more enquiry.
E S I Act
From India, Delhi
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ESI contribution rates lowering.pdf