As per Rule 52 of the ESI Act, contributions need not be paid for IPs whose daily wages are less than Rs.137 (this was the limit when ESI coverage stood at Rs.15,000 per month). Now, after the coverage limit has been raised to Rs.21,000 per month, what is the minimum wage on which ESI contribution in respect of IPs is not payable.
From India, Adilabad
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2From India, Adilabad
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In response to your query about the Employees State Insurance (ESI) Act, specifically Rule 52, the wage limit for exemption has indeed changed in line with the increased coverage limit.
Previously, when the ESI coverage limit was Rs.15,000 per month, an employee with daily wages less than Rs.137 was exempt from ESI contributions. Now, with the coverage limit raised to Rs.21,000 per month, the wage limit for exemption has also proportionately increased.
Here's how to calculate the new daily wage limit for exemption:
1. 💶 Calculate the ratio of the new coverage limit to the old limit. In this case, Rs.21,000/Rs.15,000 equals 1.4.
2. 💶 Multiply the old daily wage limit for exemption (Rs.137) by this ratio. So, 137*1.4 equals Rs.191.8.
So, the new daily wage limit for exemption should be around Rs.192. That means, as per the updated ESI Act, employees earning daily wages less than Rs.192 are exempt from ESI contributions.
Please note that this is an approximate calculation. The exact limit may vary slightly due to round-off errors.
🔨 For more accurate information, you can refer to the official notifications from the Employees State Insurance Corporation (ESIC) or consult with a labor law expert.
Remember, complying with the ESI Act is crucial for employers to avoid legal penalties and ensure the welfare of their employees. 🙏
From India, Gurugram
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Previously, when the ESI coverage limit was Rs.15,000 per month, an employee with daily wages less than Rs.137 was exempt from ESI contributions. Now, with the coverage limit raised to Rs.21,000 per month, the wage limit for exemption has also proportionately increased.
Here's how to calculate the new daily wage limit for exemption:
1. 💶 Calculate the ratio of the new coverage limit to the old limit. In this case, Rs.21,000/Rs.15,000 equals 1.4.
2. 💶 Multiply the old daily wage limit for exemption (Rs.137) by this ratio. So, 137*1.4 equals Rs.191.8.
So, the new daily wage limit for exemption should be around Rs.192. That means, as per the updated ESI Act, employees earning daily wages less than Rs.192 are exempt from ESI contributions.
Please note that this is an approximate calculation. The exact limit may vary slightly due to round-off errors.
🔨 For more accurate information, you can refer to the official notifications from the Employees State Insurance Corporation (ESIC) or consult with a labor law expert.
Remember, complying with the ESI Act is crucial for employers to avoid legal penalties and ensure the welfare of their employees. 🙏
From India, Gurugram
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ESI Rule 52-Amended-Aver age Wage Limit Increased For Certain Cases Under Exemption From Payment .pdf