Dear Experts, Request your help to solve my issue in the following 3 situations - our factory consisting 30 employees.
1. 3 employees salary increased above Rs.21000 during April 2017.
Based on the expectation it is optional for the employee and employer, we continue deduction of ESI on wages above 21000 for
the 3 employees till date.
2. Meanwhile as on 30-09-2018, 7 other employees are getting salary above 21000 (which is increased in between Apr 2017 and
April 2018). ESI was deducted on actual salary paid i.e above Rs.21000/- and employees were availing treatment facility from
ESI Hospital till date. This also happened on the same assumption that it is optional for employee and employer to deduct ESI
above Rs.21000/=
3. 5 new employees joined on 01-07-2018 wages were fixed @ 25000 to 30000. Based on the same assumption we deducted
ESI contribution from these employees and remitted properly with ESI Dept.
* Now when working out Oct 2018 wages 15 employees are drawing wages above Rs.21000/=
* On going through the clarifications posted in this site it is understood that we have to remove all these 15 employees from ESI
Coverage. When discussed with ESI Local Office - they informed ESI benefits will not be extended to employees whose salary
is above Rs.21000/ and we should not deduct ESI from such employees.
My Query -
1. Now for almost 18 months we were deducting ESI from employees with wages above Rs.21000/- and few employees were
availing medical benefits also. - will this amount to violation of ESI Law.
2. How to rectify or settle if it is a violation.
Thanks in Advance.
From India, Kochi
1. 3 employees salary increased above Rs.21000 during April 2017.
Based on the expectation it is optional for the employee and employer, we continue deduction of ESI on wages above 21000 for
the 3 employees till date.
2. Meanwhile as on 30-09-2018, 7 other employees are getting salary above 21000 (which is increased in between Apr 2017 and
April 2018). ESI was deducted on actual salary paid i.e above Rs.21000/- and employees were availing treatment facility from
ESI Hospital till date. This also happened on the same assumption that it is optional for employee and employer to deduct ESI
above Rs.21000/=
3. 5 new employees joined on 01-07-2018 wages were fixed @ 25000 to 30000. Based on the same assumption we deducted
ESI contribution from these employees and remitted properly with ESI Dept.
* Now when working out Oct 2018 wages 15 employees are drawing wages above Rs.21000/=
* On going through the clarifications posted in this site it is understood that we have to remove all these 15 employees from ESI
Coverage. When discussed with ESI Local Office - they informed ESI benefits will not be extended to employees whose salary
is above Rs.21000/ and we should not deduct ESI from such employees.
My Query -
1. Now for almost 18 months we were deducting ESI from employees with wages above Rs.21000/- and few employees were
availing medical benefits also. - will this amount to violation of ESI Law.
2. How to rectify or settle if it is a violation.
Thanks in Advance.
From India, Kochi
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ESI Covered Employees given the option of maintaining the membership after Crossing the Celiling.pdf