Dear All,
I have one query on ESI deduction. If employee gross salary is 11100 Rs. then ESI should be deducted or not. In this case the basic salary should be 10000 rs. Please help me.
Thanks
Suman:icon1:
From India, Gurgaon
12I have one query on ESI deduction. If employee gross salary is 11100 Rs. then ESI should be deducted or not. In this case the basic salary should be 10000 rs. Please help me.
Thanks
Suman:icon1:
From India, Gurgaon
hai suman here ESI always caliculated based on Gross salary only.so if gross salary is more than 10000 no need to deduct ESI.i.e.,if gross slary is 10001 also no need to deduct ESI
From India, Visakhapatnam
From India, Visakhapatnam
Dear Suman
Siharsha is right, it is under ESI Act which is the last amendement, earlier it was 7500/- but make sure that ESI is not applicable on Uniform maintenance allowance, if your company provides uniform to your employees than you can make the head as "uniform maintenance allowance or washing allowance" & ESI in not applicable on this head, eg.; gross salary is 10500/- & it includes 1000/- as UMA or WA than the employee is covered under ESI.
Thanks
Navneet Singh
Gurgaon
From India, New Delhi
Siharsha is right, it is under ESI Act which is the last amendement, earlier it was 7500/- but make sure that ESI is not applicable on Uniform maintenance allowance, if your company provides uniform to your employees than you can make the head as "uniform maintenance allowance or washing allowance" & ESI in not applicable on this head, eg.; gross salary is 10500/- & it includes 1000/- as UMA or WA than the employee is covered under ESI.
Thanks
Navneet Singh
Gurgaon
From India, New Delhi
Hi Friend,
COVERAGE UNDER THE ESI ACT, 1948
The Act was originally applicable to non-seasonal factories using power and employing 20 or more persons; but it is now applicable to non-seasonal power using factories employing 10 or more persons and non-power using factories employing 20 or more persons.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.
The existing wage-limit for coverage under the Act, is Rs.10,000/- per month (with effect from 1.10.2006)
ESI will be calculated on gross salary only upto 10,000/- employee is eligible for ESI.If he/she earns more than 10,000 rupees will not be eligible for ESI.
For Example(10,001/-) He/she will not be eligible for ESI.
I think your doubts has been cleared.
Warmest Regards,
Mohan.M.S
From India, Madras
Dear Mr.Suman,
The maximum limit for ESI Coverage is Rs.10,000/-, which is Gross Salary and includes Overtime and allowance such as Washing, travelling and etc. Suppose the gross salary is Rs.10001/-, ESI should not be covered and not to be deducted.
The deduction for ESI is 1.75% of Gross Salary as Employees Share and Employer also be paid 4.75% of the same.
thanks & regards
G.Ramanadhan
From India, Madras
The maximum limit for ESI Coverage is Rs.10,000/-, which is Gross Salary and includes Overtime and allowance such as Washing, travelling and etc. Suppose the gross salary is Rs.10001/-, ESI should not be covered and not to be deducted.
The deduction for ESI is 1.75% of Gross Salary as Employees Share and Employer also be paid 4.75% of the same.
thanks & regards
G.Ramanadhan
From India, Madras
Hi,
We are newly established in Pune area. We are newly appointed some operators on our company roll. I.e. Permanent. I have some queries regarding the Gratuity-
What is the process of Gratuity?
Where to submit there Nomination Form?
Is there any code we have to take?
If Yes? What is the process for it?
How to deposit Gratuity Amount?
I required your valuable information. You can mail me at “
”
Thanks
Rajesh Patil
9850037870
From India, Coimbatore
We are newly established in Pune area. We are newly appointed some operators on our company roll. I.e. Permanent. I have some queries regarding the Gratuity-
What is the process of Gratuity?
Where to submit there Nomination Form?
Is there any code we have to take?
If Yes? What is the process for it?
How to deposit Gratuity Amount?
I required your valuable information. You can mail me at “
Thanks
Rajesh Patil
9850037870
From India, Coimbatore
Hi Rajesh ,:-D
Gratuity is payable after completion of five years.
it is 15 days of every completed year of service.As per what i know there
is nothing called as code etc.After completion of one year you have to get the nomination filled from the employee.There is one more option that is you can opt for LIC gratuity scheme.You can enquire in LIC .That is also a good scheme.
Regards
Rajeev Dixit
09901436213
From India, Bangalore
Gratuity is payable after completion of five years.
it is 15 days of every completed year of service.As per what i know there
is nothing called as code etc.After completion of one year you have to get the nomination filled from the employee.There is one more option that is you can opt for LIC gratuity scheme.You can enquire in LIC .That is also a good scheme.
Regards
Rajeev Dixit
09901436213
From India, Bangalore
Hi,
We are newly established in Pune area. We are newly appointed some operators on our company roll. I.e. Permanent. I have some queries regarding the Gratuity-
What is the process of Gratuity?
Where to submit there Nomination Form?
Is there any code we have to take?
If Yes? What is the process for it?
How to deposit Gratuity Amount?
I required your valuable information. You can mail me at “ [IMG]https://www.citehr.com/misc.php?do=email_dev&email=cmFqZXNocGF0aWxAcHJpY2 9sLmNvLmlu[/IMG]”
Thanks
Rajesh Patil
9850037870
From India, Coimbatore
We are newly established in Pune area. We are newly appointed some operators on our company roll. I.e. Permanent. I have some queries regarding the Gratuity-
What is the process of Gratuity?
Where to submit there Nomination Form?
Is there any code we have to take?
If Yes? What is the process for it?
How to deposit Gratuity Amount?
I required your valuable information. You can mail me at “ [IMG]https://www.citehr.com/misc.php?do=email_dev&email=cmFqZXNocGF0aWxAcHJpY2 9sLmNvLmlu[/IMG]”
Thanks
Rajesh Patil
9850037870
From India, Coimbatore
Hai Suman,
ESI is not applicable where the gross salary is more than 10,000/-. However there is exception to the above. As you aware, there are two contribution periods from April to September and another from October to March.
So, an employee whose salary is below 10,000/- but due to salary increase if his salary exceeds 10,000/-, he is liable to pay esi contribution till the end of the respective contribution period either till September or March as the case may be.
Hope you are clear.
Thanks for giving me the opportunity to clear your doubts.
Have great day.
R.Sreenivasan
From India, Madras
ESI is not applicable where the gross salary is more than 10,000/-. However there is exception to the above. As you aware, there are two contribution periods from April to September and another from October to March.
So, an employee whose salary is below 10,000/- but due to salary increase if his salary exceeds 10,000/-, he is liable to pay esi contribution till the end of the respective contribution period either till September or March as the case may be.
Hope you are clear.
Thanks for giving me the opportunity to clear your doubts.
Have great day.
R.Sreenivasan
From India, Madras
hi Suman,
Depending on the salary structure of your organisation, can one comment about ESIC deduction,i.e how gross of Rs.11100 is broken up in the salary structure, since reimbursements like LTA or Medical in a sal structure are not to be considered for ESIC.
Thus if u can throw light on your sal structure will be in a better position to talk abt ESIC deduction.
Regs,
Deepa
Depending on the salary structure of your organisation, can one comment about ESIC deduction,i.e how gross of Rs.11100 is broken up in the salary structure, since reimbursements like LTA or Medical in a sal structure are not to be considered for ESIC.
Thus if u can throw light on your sal structure will be in a better position to talk abt ESIC deduction.
Regs,
Deepa
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