Dear Sir,
There is a problem regarding the ESIC, i.e., the ESI is to be deducted on gross salary or basic salary. Suppose the salary of 18000/- is decided by the employer, then the basic is = 18000 * 40% = 7200. In this case, I should deduct the ESI contribution of 4.75% from the employer and 1.75% from the employee's contribution. The question is whether these percentages should be deducted based on the basic salary of 7200 or the total salary of 18000/-.
Please provide clarification on this issue.
Rajesh
HR
From India, Hyderabad
Acknowledge(0)
Amend(0)
1There is a problem regarding the ESIC, i.e., the ESI is to be deducted on gross salary or basic salary. Suppose the salary of 18000/- is decided by the employer, then the basic is = 18000 * 40% = 7200. In this case, I should deduct the ESI contribution of 4.75% from the employer and 1.75% from the employee's contribution. The question is whether these percentages should be deducted based on the basic salary of 7200 or the total salary of 18000/-.
Please provide clarification on this issue.
Rajesh
HR
From India, Hyderabad
Acknowledge(0)Amend(0)
Please note that if salary <15000 only eligible for ESIC. It should be on gross salary only. REgards Eswar.k 8056041800
From India, Chennai
Acknowledge(0)Amend(0)
From India, Chennai
Acknowledge(0)Amend(0)
Dear Rajesh,
First, ESI is calculated on the monthly gross salary. Second, any employee receiving a monthly gross salary of more than 15,000 does not fall under the purview of ESIC.
For any further clarification, feel free to write or discuss.
From India, Mumbai
Acknowledge(0)Amend(0)
First, ESI is calculated on the monthly gross salary. Second, any employee receiving a monthly gross salary of more than 15,000 does not fall under the purview of ESIC.
For any further clarification, feel free to write or discuss.
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Rajesh,
We have to take into consideration gross salary only for the calculation of ESI. The ESI eligibility amount has been increased from 10,000 to 15,000.
Following your example, if the salary is 18,000/-, the gross salary may be 13,000/-
ESI Calculation:
- 13,000 * 1.75% for the employee
- 13,000 * 4.75% for the employer.
Regards,
JAGADEESH (HR & Admn)
From India, Tirunelveli
Acknowledge(0)Amend(0)
We have to take into consideration gross salary only for the calculation of ESI. The ESI eligibility amount has been increased from 10,000 to 15,000.
Following your example, if the salary is 18,000/-, the gross salary may be 13,000/-
ESI Calculation:
- 13,000 * 1.75% for the employee
- 13,000 * 4.75% for the employer.
Regards,
JAGADEESH (HR & Admn)
From India, Tirunelveli
Acknowledge(0)Amend(0)
ESI has to be calculated on the gross salary. but does not include WASHING ALLOWANCE:ANNUAL BONUS:INCENTIVE BONUS:INAM/EX-GRATIA PAYMENT:NEWSPAPER ALLOWANCE.
From India, Kochi
Acknowledge(0)Amend(0)
From India, Kochi
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.