I have an query
I work in Public Sector. In my plant we have few employees , whose gross salary is lower than 15000. ie they fall in the purview of ESI, remaining employees are out of the coverage as they have higher salary.
Now the problem is suppose the gross salary of an employee is 14000, now we pay for his ESI contribution as per ESI act.but after wage revision in may month, his salary increases to 18000. Now automatically he gets out of coverage, but as per law we will contribute till the end of the contributory period ie, October.
Nowdue to absenteeism the employee withdraws a gross of 14000, in the month of july and net pay around 13500. . now will this employee come back in the purview of ESI, as his salary gets lower than 15k???. will this monthly change in salary due to absenteeism will come into effect? My question is once the gross crosses 15k , can the employee again return under esi if the salary for any respective month falls below 15k , if he is absent??? Please give me the section where it is written in ESI ACT.
2. Another case is...
We pay statutory bonus @ 8.33% at the month of oct. Now all the employees have basic + DA around 25k . So naturally they will not come under bonus act , as basic + da is higher than 10k. Now suppose for any month an employee comes for 5 days in a month due to sickness or domestic problem, and he withdraws a salary of 9k, will i have to pay him bonus for those months? bonus in our plant is paid annually ie 8.33*3500*12,
So if someone withdraws less salary for any month will he come into bonus act??? which section defines it , can any one help..
From India, Calcutta
112I work in Public Sector. In my plant we have few employees , whose gross salary is lower than 15000. ie they fall in the purview of ESI, remaining employees are out of the coverage as they have higher salary.
Now the problem is suppose the gross salary of an employee is 14000, now we pay for his ESI contribution as per ESI act.but after wage revision in may month, his salary increases to 18000. Now automatically he gets out of coverage, but as per law we will contribute till the end of the contributory period ie, October.
Nowdue to absenteeism the employee withdraws a gross of 14000, in the month of july and net pay around 13500. . now will this employee come back in the purview of ESI, as his salary gets lower than 15k???. will this monthly change in salary due to absenteeism will come into effect? My question is once the gross crosses 15k , can the employee again return under esi if the salary for any respective month falls below 15k , if he is absent??? Please give me the section where it is written in ESI ACT.
2. Another case is...
We pay statutory bonus @ 8.33% at the month of oct. Now all the employees have basic + DA around 25k . So naturally they will not come under bonus act , as basic + da is higher than 10k. Now suppose for any month an employee comes for 5 days in a month due to sickness or domestic problem, and he withdraws a salary of 9k, will i have to pay him bonus for those months? bonus in our plant is paid annually ie 8.33*3500*12,
So if someone withdraws less salary for any month will he come into bonus act??? which section defines it , can any one help..
From India, Calcutta
Hi,
I believe this situation has a very simple solution. There is a difference between Gross Salary & Gross Earned Salary. The Gross Salary is the salary assured by the organization on working of full quota of month. While the Gross Earned Salary is the employees earning w.r.t his/her number of days of working for the month.
ESI & Bonus Act is applicable on Gross Salary, while it is calculated on Gross Earned Salary. What I mean to say is that if an employees Gross Salary for month is 15001 K, the employee is out of the Purview of ESI Act, irrespective of his/her Gross Earned Salary. Even if the employees Gross Earned Salary is below 15000, he/she will not be required to make contribution for ESI.
Now in your case the contribution of the employee has to be done till the month of September on the complete earning of the employee.
I hope this will prove to be of help.
From India, Madras
I believe this situation has a very simple solution. There is a difference between Gross Salary & Gross Earned Salary. The Gross Salary is the salary assured by the organization on working of full quota of month. While the Gross Earned Salary is the employees earning w.r.t his/her number of days of working for the month.
ESI & Bonus Act is applicable on Gross Salary, while it is calculated on Gross Earned Salary. What I mean to say is that if an employees Gross Salary for month is 15001 K, the employee is out of the Purview of ESI Act, irrespective of his/her Gross Earned Salary. Even if the employees Gross Earned Salary is below 15000, he/she will not be required to make contribution for ESI.
Now in your case the contribution of the employee has to be done till the month of September on the complete earning of the employee.
I hope this will prove to be of help.
From India, Madras
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