Central Govt. has now issued final notification of enhancement of wage ceiling under above Act to Rs.21000/- per month. The Notification is dated 22/12/2016 and the same is applicable w.e.f. 01/01/2017. The said notification can be downloaded from the website of appropriate Gazette, online link of the same is as follows:
http://www.egazette.nic.in/(S(5jz35w...)/Search1.aspx
THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
However, copy of notification is uploaded also in this thread.
From India, Noida
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944http://www.egazette.nic.in/(S(5jz35w...)/Search1.aspx
THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
However, copy of notification is uploaded also in this thread.
From India, Noida
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Appreciate your effort, sir.
A few doubts regarding the implementation of the wage ceiling and kindly make modifications if the understanding is not correct.
1. For Jan 2017 salary payable in Feb 2017, the revised wage ceiling has to come into effect.
2. In the current contribution period, for Nov 2016 and Dec 2016, the contributions follow as per the 15,000 ceiling.
3. If arrears are there till Dec 2016, follow the previous wage ceiling only.
4. For the implementation of the revised wage ceiling, whether the employer should wait for specific instructions from ESIC, software readiness, etc.
From India, Bangalore
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A few doubts regarding the implementation of the wage ceiling and kindly make modifications if the understanding is not correct.
1. For Jan 2017 salary payable in Feb 2017, the revised wage ceiling has to come into effect.
2. In the current contribution period, for Nov 2016 and Dec 2016, the contributions follow as per the 15,000 ceiling.
3. If arrears are there till Dec 2016, follow the previous wage ceiling only.
4. For the implementation of the revised wage ceiling, whether the employer should wait for specific instructions from ESIC, software readiness, etc.
From India, Bangalore
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1. Sir, regarding paragraph 1, your interpretation appears to be correct. Wages for January 2017 are to be paid at the close of the month, and hence the contribution on the revised wage ceiling will be payable from said month. The first payment on the revised wage ceiling is required to be made by 21st February 2017 (for January 2017).
2. Your interpretation in paragraph 2 also appears to be correct.
3. Your interpretation for paragraph 3 also appears to be correct. However, the coverage of new entrants to the said scheme is to be examined and monitored based on wages as of January 2017, as defined in the ESI Act, 1948.
4. The employer is required to ensure compliance based on the revised wage ceiling fixed as mentioned above. Revision or amendment in the ESIC Software, in my opinion, is only a procedural aspect. However, I believe that ESIC authorities are expected to update their software, procedures, etc., well in time, or they can issue appropriate instructions. You can seek assistance from the appropriate Branch Office/Regional/Sub-Regional Office of ESIC to which your unit is attached.
From India, Noida
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2. Your interpretation in paragraph 2 also appears to be correct.
3. Your interpretation for paragraph 3 also appears to be correct. However, the coverage of new entrants to the said scheme is to be examined and monitored based on wages as of January 2017, as defined in the ESI Act, 1948.
4. The employer is required to ensure compliance based on the revised wage ceiling fixed as mentioned above. Revision or amendment in the ESIC Software, in my opinion, is only a procedural aspect. However, I believe that ESIC authorities are expected to update their software, procedures, etc., well in time, or they can issue appropriate instructions. You can seek assistance from the appropriate Branch Office/Regional/Sub-Regional Office of ESIC to which your unit is attached.
From India, Noida
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Notification Regarding enhancement of Wage ceiling for ESI w.e.f. 01st May 2010.pdf