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Arti Singh
1

Dear Seniors, Kindly guide me for the following issue:
An employee whose monthly CTC is Rs. 10242/- wants to stop his ESI Contribution. what should be done?
Conditions :
1. Not to increase his salary/ctc.
Kindly guide.
Mrs. Arti Singh

From India, Delhi
sidman05
2

Dear Arti,
Nothing can be done, since the ESI limit is raised to Rs. 15000/- ( I.E. Gross salary). It is mandatory for him. Further it is bebeficial for him only. Explain the Benefits of ESI to him and continue to pay the contributions.
Regards,
SIDMAN

From India, Madras
anilkulkarni
4

Dear Aarti,
If the employee is staying in an area where ESI Scheme is not applicable i.e. it is a Non-implemented area, exemption can be claimed from ESI Department about the specific case.
If he is living in any area where ESIC is applicable, nothing can be done.
Regards,
Anil Kulkarni.

From India, Mumbai
chander_kmr02
3

Hello Arti,
ESI applicablity is mandatory for all peoples whose salary is gross or ctc below 15000/- & ur solution is if employee does't agree esic contribution regularly. So, u have first received the resign immediatly and left the employee. Salary will pay on casual basis.
thanks,
Chander
HR-Exec.
Mail:chander_kmr02@rediffmail.com

From India, New Delhi
kommagani
Dear Arti,
ESI is a mandatory for employees who are getting salary Rs.15000/- inclusive of all allowances, not CTC. I mean the Employers pf contribution, bonus, gratuity etc., should not be included.
In your case his salary is below Rs.10000/-, hence the ESI is must for him. No way to exempt him from ESI cap.
Jagan,

From India, Mumbai
HR_venki
1

Dear Mrs. Arti,
The one of the Social security benefit is ESI. Once the organization covers under ESI purview, every employee who are drawing salary below Rs.15000/- inclusive of all allowances. Here ESI deduction on CTC is meaningless. hence he should not be exempt from ESI covering.
regards,
Venki

From India, Pune
narayanavyas
Dear Mr. Chander,
this is for your information that even for casuals the principle employer is responsible for the payment of ESI. It is unstatutory to employ casuals who are not kept under the cover of ESI.
Regards,
Vyas

From India, Secunderabad
Vasant Nair
90

Coverage under the ESI Scheme is not a matter of choice. It is a statutory obligation which has to be complied with.
Well. to answer your question nothing can be done to accede to the employee's request. He will continue to be covered under the ESI Scheme till he crosses the Rs.15000/- p.m. Gross Pay limit.
Vasant Nair

From India, Mumbai
ranga_ag
There is no chance in exempting the ESI. AS the limit is increased to s. 15,000/-. Other option is that increase the salary to Rs. 15,500/- so that he can get the exemption. Rangarajan 9741155458
From India, Bangalore
Madan Mohan
1

Dear Arti,
ESI is a mandatory for employees who are getting salary Rs.15000/- w.e.f. 01.05.2010 inclusive of all allowances i.e. (Whatever you pay in payroll) basic, HRA, Conv. All. etc but not CTC. mean the Employers pf contribution, Employer Esi Contribution, gratuity, Bonus etc., should not be included.
In your case his salary is below Rs.11000/-, hence the ESI is must be deduction and your organisation is bond to deduct ESI. There is No way to exempt him from ESI.
Regard
Madan Mohan
9971216078
Gurgaon (Haryana)

From India, Delhi
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