If an employee's salary is Rs. 12,000 in the month of June, his salary was increased by Rs. 4,000 and became Rs. 16,000 in the month of July.
Which month will be applicable for the exemption of ESI, is it the next month or the end of that contribution period.
From India, Kanpur
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2Which month will be applicable for the exemption of ESI, is it the next month or the end of that contribution period.
From India, Kanpur
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See, as esic wages is upto 15000/- then during that months and when wages exceed 15000/-p.m., then excluded.
From India, Ahmadabad
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From India, Ahmadabad
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Mr. Bhardwaj, Thanks for post, but there is great confusion bcoz as i know none employee can be exempted in mid contribution period except termination or retierment. Kindly brief me in detail.
From India, Kanpur
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From India, Kanpur
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Dear Amitmidi,
As you mentioned, an employee who is covered under ESI in the month of April, even after a salary revision (if they receive a one lakh rupee increment), remains covered under ESI until September. This is because the contribution period spans from April to September. If you fail to contribute the required amounts from both the employee and employer, you may receive a notice from ESI authorities during an inspection of your establishment.
Regards,
Y. Gowree Parameswara Rao
9550403676
From India, Hyderabad
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As you mentioned, an employee who is covered under ESI in the month of April, even after a salary revision (if they receive a one lakh rupee increment), remains covered under ESI until September. This is because the contribution period spans from April to September. If you fail to contribute the required amounts from both the employee and employer, you may receive a notice from ESI authorities during an inspection of your establishment.
Regards,
Y. Gowree Parameswara Rao
9550403676
From India, Hyderabad
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1. If the wages of an employee (excluding remuneration for overtime work) exceeds the wage limit prescribed by the Central Government after April or October for the contribution periods from April to September, and October to March, he continues to be an employee till the end of that contribution period and contribution is to be deducted and paid on the total wages earned by him.
2. In case the wages of an employee are increased from a retrospective date resulting in crossing the wage limit prescribed, its effect on coverage of that employee is only after the expiry of the Contribution period during the currency of which such increase is announced or declared. The contribution on enhanced wages is also payable from the month in which such increase is announced. There is no need to pay the contribution on the arrears for the period prior to the month of declaration/announcement/agreement.
From India, Ahmadabad
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2. In case the wages of an employee are increased from a retrospective date resulting in crossing the wage limit prescribed, its effect on coverage of that employee is only after the expiry of the Contribution period during the currency of which such increase is announced or declared. The contribution on enhanced wages is also payable from the month in which such increase is announced. There is no need to pay the contribution on the arrears for the period prior to the month of declaration/announcement/agreement.
From India, Ahmadabad
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In case you want to remove the member due to out of coverage.you will done only Half yearly period.(April/ September. Suresh
From India, Madras
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From India, Madras
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Please note that once ESI Contribution is paid in the base month of ESI Contribution Period, then the ESI Contribution will be paid for the full contribution period. In your case, the salary of the employee in the month of June is Rs. 12000.00; hence, you have paid the ESI Contribution up to June. If his salary is increased to Rs. 16000.00, the ESI contribution will be paid up to September. He will be exempted from the ESI Contribution in the month of October.
ESIC Contribution Base Months Are: April & October of every year. Contribution Periods are: 1. April to September 2. October to March.
Regards, U.C. Kaushik
From India
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ESIC Contribution Base Months Are: April & October of every year. Contribution Periods are: 1. April to September 2. October to March.
Regards, U.C. Kaushik
From India
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Dear Sir,
Please note that no employee can be exempted in the mid-term. If an employee is already covered under ESI in the first month of the Half-Yearly Return, he can only be exempted in the next Half-Yearly Return.
Regards,
Deepak Sharma
From India, Ludhiana
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Please note that no employee can be exempted in the mid-term. If an employee is already covered under ESI in the first month of the Half-Yearly Return, he can only be exempted in the next Half-Yearly Return.
Regards,
Deepak Sharma
From India, Ludhiana
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Dear,
If the employee, who is covered under ESI in the month of April, experiences any revision in salary between April and September, they will remain covered under ESIC until September. It is necessary to deduct and deposit both contributions as the contribution period spans from April to September. Failure to contribute the employee and employer amounts may result in the employer needing to settle all liabilities during an inspection conducted by ESI.
Regards,
Ravinder Singh
9910107834
From India, Gurgaon
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If the employee, who is covered under ESI in the month of April, experiences any revision in salary between April and September, they will remain covered under ESIC until September. It is necessary to deduct and deposit both contributions as the contribution period spans from April to September. Failure to contribute the employee and employer amounts may result in the employer needing to settle all liabilities during an inspection conducted by ESI.
Regards,
Ravinder Singh
9910107834
From India, Gurgaon
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Dear Amitmadi,
ESI contribution is deducted from your gross salary, not from CTC. If your gross salary exceeds 15000 per month, then ESI contribution will not be applicable.
So, firstly, determine your CTC, gross, and net take-home salary. Then, calculate whether your gross salary is less than 15000 or greater. The last date for ESI challan submission is the 21st of the subsequent month. This means that the salary for July, received in August, will have ESI contributions due by the 21st of August.
Regards,
Ashish Dwived
From India, Indore
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ESI contribution is deducted from your gross salary, not from CTC. If your gross salary exceeds 15000 per month, then ESI contribution will not be applicable.
So, firstly, determine your CTC, gross, and net take-home salary. Then, calculate whether your gross salary is less than 15000 or greater. The last date for ESI challan submission is the 21st of the subsequent month. This means that the salary for July, received in August, will have ESI contributions due by the 21st of August.
Regards,
Ashish Dwived
From India, Indore
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[QUOTE=Amitmdi;1897416]
IF AN EMPLOYEE'S SALARY IS Rs. 12,000/= IN THE MONTH OF JUNE, AND IT IS INCREASED BY Rs. 4,000/= TO BECOME Rs. 16,000/= IN THE MONTH OF JULY.
WHICH MONTH WILL BE APPLICABLE FOR THE EXEMPTION OF ESI? IS IT THE NEXT MONTH OR THE END OF THAT CONTRIBUTION PERIOD?
Dear Amit,
ESIC limit is Rs. 15,000/- per month of gross salary for ESI contribution. If the salary increases to Rs. 16,000/- in the next month, then ESI deduction will apply to that contribution period. The contribution period is from April 2012 to September 2012, and at the end of September 2012, ESI will be deducted, making the Rs. 16,000/- salary per month non-taxable.
Thanks and Regards,
Kaushik Patel
Manager HR
From India, Surat
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IF AN EMPLOYEE'S SALARY IS Rs. 12,000/= IN THE MONTH OF JUNE, AND IT IS INCREASED BY Rs. 4,000/= TO BECOME Rs. 16,000/= IN THE MONTH OF JULY.
WHICH MONTH WILL BE APPLICABLE FOR THE EXEMPTION OF ESI? IS IT THE NEXT MONTH OR THE END OF THAT CONTRIBUTION PERIOD?
Dear Amit,
ESIC limit is Rs. 15,000/- per month of gross salary for ESI contribution. If the salary increases to Rs. 16,000/- in the next month, then ESI deduction will apply to that contribution period. The contribution period is from April 2012 to September 2012, and at the end of September 2012, ESI will be deducted, making the Rs. 16,000/- salary per month non-taxable.
Thanks and Regards,
Kaushik Patel
Manager HR
From India, Surat
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Dear Sir,
The employee will be exempt from ESI coverage after September because the contribution periods are from April to September and October to March. He will have to pay contributions from April to September.
Thanks,
RK Jha
From India, Calcutta
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The employee will be exempt from ESI coverage after September because the contribution periods are from April to September and October to March. He will have to pay contributions from April to September.
Thanks,
RK Jha
From India, Calcutta
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In my opinion if the increment was due but not paid due to any reason in the month of April & paid in subsequent month with arreares you can exempt that person from the month you paid arrears
From India, Mumbai
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From India, Mumbai
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sorry an employee can be exempt from esi in the months of oct. & apr. if wages exceeds to 15000/- reagrds thakur
From India, Delhi
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From India, Delhi
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The contribution option "exceeds limit" is not accepted except in April and October. So, it is mandatory to deduct ESI up to September if an employee exceeds the limit of ESI of 15000 in the month of June.
Thank you,
Thakur
From India, Delhi
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Thank you,
Thakur
From India, Delhi
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Hi For the month of June salary payable in July, you have to pay his ESI contribution. You will have to exclude him for the July salary payable in August from ESI, but continue his PF Regards
From India, Bangalore
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From India, Bangalore
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My Dear Friend,
If an employee's contribution starts at a single time in the Half-Yearly Return, then their contribution is compulsory for regularity until the end of the half-year return. After completing the return, subsequent months are exempted.
For example, if there is an employee whose salary is $12,000 in the month of December 2010, but in the next month, January 2011, their salary increases to $16,000 due to an increment, then deductions are made only until December 2010 since this marks the end of the return period.
However, if an employee's salary is $12,000 in the month of January 2011, and in the following month, February 2011, their salary increases to $16,000 through an increment, then deductions are made only until June 2011 as this signifies the end of the half-yearly return.
Gyandeep
From India, Delhi
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If an employee's contribution starts at a single time in the Half-Yearly Return, then their contribution is compulsory for regularity until the end of the half-year return. After completing the return, subsequent months are exempted.
For example, if there is an employee whose salary is $12,000 in the month of December 2010, but in the next month, January 2011, their salary increases to $16,000 due to an increment, then deductions are made only until December 2010 since this marks the end of the return period.
However, if an employee's salary is $12,000 in the month of January 2011, and in the following month, February 2011, their salary increases to $16,000 through an increment, then deductions are made only until June 2011 as this signifies the end of the half-yearly return.
Gyandeep
From India, Delhi
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ESI Rule 52-Amended-Aver age Wage Limit Increased For Certain Cases Under Exemption From Payment .pdf