ashok.jangra Started The Discussion:
Can any one provide any circular of esic regarding this
salary paid for the month of nov 10000/ esi deduct 175/-
and during the month of dec salary paid @ 18000/
tell me contributon for this amount
is calaculate on 15000/- or 18000/- up to next return period
as per my knowledge
esic contribution calculation should be on 15000/-
if any reply please provide the circulars
will be thankfull
after increment u can stop contribution for employee.u can save the employer's contribution that is a benefit of employer because ESIC ceiling point is 15000K
Please try to understand my question
We can stop all contribution after completation the period Oct 2010 to March 2011
My question is only that contributon payments calculation on 15000/- or 18000/-
To my understanding, ESIC has a block period during which the employee is covered and payments cannto be withdrawn in between.
Since employee is out of ESIC limit, the choice is with the employer to keep deduction on the minimum 15k and maintain the facility and simultaneously add him into Group Medical Covergae as applicable for all other non esic employees.
The calculations if any should be based on the Maximum amount limit i.e 15,000/-
Yes u r correct Increment b/w the contribution period means v should deduct the payment upto the ceiling wage. i.e, 15k X 1.75% basis v can deduct. Emr also should contri 4.75% for the same wage til the contribution period ends, once the return filled means v ll show him as a left employee.
This is my opinion.
Manager - ER &IR
Dear ashok, u have to pay the ESI contribution on 18k only............since if u go through the employee definitionm u/s. 2(9) of the Act, it clearly says that even an employee crosses wage ceiling he should be continued to be under coverage till the end of the contribution period.
Further the contribution will not be futile, as the cash benefit will be disbursed based on the wages drawn by him in the concerned contribution period..
Hope u understand the issue......
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