HI All
ESI Deduction is Based on Gross Salary or Net Salary as per New Rules of ESI
i have this components in my Salary , is i am eligible for ESI deduction
Basic Salary – 10200
HRA – 5100
Personal allowance – 2386
Conveyance Allowance – 1600
Advance Bonus – 2040
PF Contribution - 1224
this is the Salary structure Per month , is this Eligible for ESI deduction ..
From India, Bengaluru
Acknowledge(0)
Amend(0)
ESI Deduction is Based on Gross Salary or Net Salary as per New Rules of ESI
i have this components in my Salary , is i am eligible for ESI deduction
Basic Salary – 10200
HRA – 5100
Personal allowance – 2386
Conveyance Allowance – 1600
Advance Bonus – 2040
PF Contribution - 1224
this is the Salary structure Per month , is this Eligible for ESI deduction ..
From India, Bengaluru
Acknowledge(0)Amend(0)
For ESI contribution, gross monthly salary is taken into consideration.
Advance bonus should not be paid "monthly" as it is a violation of the bonus act. If paid on a monthly basis, it would get included in the ESI eligible salary. PF contribution of the employee is covered under ESIC, but the employer's contribution is not covered.
Acknowledge(0)Amend(0)
725Advance bonus should not be paid "monthly" as it is a violation of the bonus act. If paid on a monthly basis, it would get included in the ESI eligible salary. PF contribution of the employee is covered under ESIC, but the employer's contribution is not covered.
Acknowledge(0)Amend(0)
Dear all,
The total salary comes to Rs.22550/- per month as per break up as given i.e. Basic Salary – 10200 HRA – 5100 Personal allowance – 2386 Conveyance Allowance – 1600 Advance Bonus – 2040 PF Contribution - 1224 and the present ceiling limit is Rs.21000/- per month.
Now, two allowances viz Advance Bonus (call it as interim bonus) and Contribution to EPF is not wages hence the total earnings comes to Rs.19286/- which is covered under the ESIC.
P K Sharma
From India, Delhi
Acknowledge(0)Amend(0)
The total salary comes to Rs.22550/- per month as per break up as given i.e. Basic Salary – 10200 HRA – 5100 Personal allowance – 2386 Conveyance Allowance – 1600 Advance Bonus – 2040 PF Contribution - 1224 and the present ceiling limit is Rs.21000/- per month.
Now, two allowances viz Advance Bonus (call it as interim bonus) and Contribution to EPF is not wages hence the total earnings comes to Rs.19286/- which is covered under the ESIC.
P K Sharma
From India, Delhi
Acknowledge(0)Amend(0)
Hi all,
Recently, due to ESI changes, I had my salary restructured. However, in the restructuring, I noticed that ESI paid by the employer is also included in my salary. Is this correct? As far as I know, only the employee's share (1.75%) needs to be deducted, while the employer's share (4.75%) should be borne by the company, right? Please suggest.
Thanks
From India, Bengaluru
Acknowledge(0)Amend(0)
Recently, due to ESI changes, I had my salary restructured. However, in the restructuring, I noticed that ESI paid by the employer is also included in my salary. Is this correct? As far as I know, only the employee's share (1.75%) needs to be deducted, while the employer's share (4.75%) should be borne by the company, right? Please suggest.
Thanks
From India, Bengaluru
Acknowledge(0)Amend(0)
Hi Everyone,
This is for your kind attention that ESIC is applicable on gross earnings up to Rs. 21,000/- (gross wages/salary, whatever you have earned including monthly bonus).
Aside from Pradeep: I think you have received your appointment letter with CTC calculation, which is why your company is deducting contributions from both sides from your salary. Please ask your company to revise your appointment letter according to the current status of your employment.
Thanks & Regards
Email: ashishshow@gmail.com
Ashish Shaw
From India, Kolkata
Acknowledge(0)Amend(0)
This is for your kind attention that ESIC is applicable on gross earnings up to Rs. 21,000/- (gross wages/salary, whatever you have earned including monthly bonus).
Aside from Pradeep: I think you have received your appointment letter with CTC calculation, which is why your company is deducting contributions from both sides from your salary. Please ask your company to revise your appointment letter according to the current status of your employment.
Thanks & Regards
Email: ashishshow@gmail.com
Ashish Shaw
From India, Kolkata
Acknowledge(0)Amend(0)
Pradeep,
The term 'wages' as defined under Section 2(22) of the ESI Act comprises of:
- Any remuneration paid or payable to an employee in cash and/or bank, in compliance with the terms of the contract of employment.
- Any payment to an employee in respect of any period of authorized leave, severance, retrenchment, or any other layoffs, legal in nature.
- Any other remuneration, if paid at intervals not exceeding 2 months (e.g., monthly performance/target bonus/incentive), including overtime.
What's excluded is:
a. Employer's contribution to provident fund and any pension fund or under the ESI Act.
b. Any LTA, LTC, or TA.
c. Any reimbursements for discharging official duties/responsibilities or any special expenses entitled to him by the nature of his employment or any reimbursements forming part of the salary structure, within legal limits as prescribed in the IT Act.
d. Gratuity payable/paid on cessation of employment.
In this specific case, the Wages = Basic Salary 10,200 + HRA 5,100 + Personal Allowance 2,386 + Conveyance Allowance 1,600 = 19,286, which qualifies for the ESI liability provision.
I hope this helps!
Best wishes.
From India, New Delhi
Acknowledge(0)Amend(0)
The term 'wages' as defined under Section 2(22) of the ESI Act comprises of:
- Any remuneration paid or payable to an employee in cash and/or bank, in compliance with the terms of the contract of employment.
- Any payment to an employee in respect of any period of authorized leave, severance, retrenchment, or any other layoffs, legal in nature.
- Any other remuneration, if paid at intervals not exceeding 2 months (e.g., monthly performance/target bonus/incentive), including overtime.
What's excluded is:
a. Employer's contribution to provident fund and any pension fund or under the ESI Act.
b. Any LTA, LTC, or TA.
c. Any reimbursements for discharging official duties/responsibilities or any special expenses entitled to him by the nature of his employment or any reimbursements forming part of the salary structure, within legal limits as prescribed in the IT Act.
d. Gratuity payable/paid on cessation of employment.
In this specific case, the Wages = Basic Salary 10,200 + HRA 5,100 + Personal Allowance 2,386 + Conveyance Allowance 1,600 = 19,286, which qualifies for the ESI liability provision.
I hope this helps!
Best wishes.
From India, New Delhi
Acknowledge(0)Amend(0)
To access the ESI Employee Portal, log in using your ESI Insurance number. This will allow you to view your Gross Salary, on which ESI Contribution is deducted, as well as the amount of Employee Share of ESI Contribution that has been remitted. Alternatively, you can check your Pay Slip for a clearer breakdown of this information.
If you notice any discrepancies, kindly bring them to the attention of your Employer.
Thank you.
From India, New Delhi
Acknowledge(0)Amend(0)
If you notice any discrepancies, kindly bring them to the attention of your Employer.
Thank you.
From India, New Delhi
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
ESI contribution rates lowering.pdf