Hi,
For example, a person's gross salary from Oct-14 to Dec-14 is Rs. 14,000, and he received an increment in Jan-15 of Rs. 3,000. Therefore, the total gross salary for Jan-15 is Rs. 17,000. Should I deduct ESI at 1.75% of Rs. 17,000 up to the March salary, or should I stop ESI deduction from Jan-15? Please clarify ASAP.
(Apr to Sept, Oct to Mar, these are the ESI 6-month periods. So, my doubt is once we enter the 6-month period, is it compulsory for the same to be applicable until the half-year end, or not?)
Thank you.
From India, Hyderabad
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5For example, a person's gross salary from Oct-14 to Dec-14 is Rs. 14,000, and he received an increment in Jan-15 of Rs. 3,000. Therefore, the total gross salary for Jan-15 is Rs. 17,000. Should I deduct ESI at 1.75% of Rs. 17,000 up to the March salary, or should I stop ESI deduction from Jan-15? Please clarify ASAP.
(Apr to Sept, Oct to Mar, these are the ESI 6-month periods. So, my doubt is once we enter the 6-month period, is it compulsory for the same to be applicable until the half-year end, or not?)
Thank you.
From India, Hyderabad
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Dear member, you should have submitted total details of wages of the concerned employee as per his pay slip/wage register. In the past, in some cases, it was observed that the "Gross Salary" so mentioned was wrongly noted and was actually the so-called "CTC".
However, in view of the facts submitted above, you are required to deduct contributions under the ESI Act, 1948, and rules/regulations framed thereunder till the close of the contribution period, i.e., up to 31/3/2015. Please ensure that the amount of wages of Rs. 17000/- as mentioned above does not include "Overtime" before exempting any employee.
Contribution is required to be paid on the total amount of wages of Rs. 17000/- till the close of the contribution period as mentioned above.
From India, Noida
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However, in view of the facts submitted above, you are required to deduct contributions under the ESI Act, 1948, and rules/regulations framed thereunder till the close of the contribution period, i.e., up to 31/3/2015. Please ensure that the amount of wages of Rs. 17000/- as mentioned above does not include "Overtime" before exempting any employee.
Contribution is required to be paid on the total amount of wages of Rs. 17000/- till the close of the contribution period as mentioned above.
From India, Noida
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A person within ESI limits continues to be under ESI until the end of the 6-monthly period (in this case October - March), irrespective of their wage crossing the ESI limit. They only go out of the ESI limit in April.
Hope this helps.
From India, Kolkata
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Hope this helps.
From India, Kolkata
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Yes the ESI contribution will be applicable till March 2015, effective April 2015 you can forgo the ESI contribution since the salary is beyond the ceiling limit. Hope this clarifies your query
From India, Ahmadabad
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From India, Ahmadabad
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in this case as per ESIC rule ESIC contribution will deduct on 17000/- till March’15 after March. he will be exempt from ESIC.
From India, Delhi
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From India, Delhi
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There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under
From India, Ahmedabad
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From India, Ahmedabad
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Hi,
There are two contribution periods, each of six-month duration as follows. The employee has to pay or have deducted for ESIC benefits.
Contribution Period Cash Benefit Period
1st April to 30th Sept. 1st Jan of the following year to 30th June
1st Oct to 31st March of the following year. 1st July to 31st December.
Regards,
Hetal Solanki
From India, Ahmedabad
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There are two contribution periods, each of six-month duration as follows. The employee has to pay or have deducted for ESIC benefits.
Contribution Period Cash Benefit Period
1st April to 30th Sept. 1st Jan of the following year to 30th June
1st Oct to 31st March of the following year. 1st July to 31st December.
Regards,
Hetal Solanki
From India, Ahmedabad
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The benefit rate (sickness or TDB/PDB) is not allowed beyond the maximum ceiling limit by ESIC then why only contribution beyond the ceiling limit ? Can some one clarify?
From India, Delhi
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From India, Delhi
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Dear Apex Management,
At present, there is no maximum ceiling limit regarding the payment of benefits under the ESI Act, 1948, and the rules/regulations framed thereunder. The rates of payment of benefits have been amended to a percentage system by an amendment in the ESI (Central) Rules, 1950, which was made applicable w.e.f. 1/7/2011.
Therefore, the higher the rates of average wages in any contribution period, the higher will be the rate of benefit in respect of cash benefits in the corresponding benefit period.
From India, Noida
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At present, there is no maximum ceiling limit regarding the payment of benefits under the ESI Act, 1948, and the rules/regulations framed thereunder. The rates of payment of benefits have been amended to a percentage system by an amendment in the ESI (Central) Rules, 1950, which was made applicable w.e.f. 1/7/2011.
Therefore, the higher the rates of average wages in any contribution period, the higher will be the rate of benefit in respect of cash benefits in the corresponding benefit period.
From India, Noida
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ESI COVERAGE ON 1O EMPLOYEE0104201 1.pdf
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