is it compulsory to pay esi for a salary below 10000 rs
CiteLegal
 
HOME RISE NEW ABOUT LOGIN
Home > Human Resource Section > Human Resource Management

is it compulsory to pay esi for a salary below 10000 rs

kirankumarr Started The Discussion:

i am getting 9250 rs as gross salary but the company is deducting esi of Rs.161,is it compulsory to deduct this. please let me know who can answer about this query.

welcomeumesh - Member Since: May 2007
Dear Kiran,

Yes, as per the Employee State Insurance Corporation Act, it's mandatory for every eligible employer to contribute towards ESIC, where the employee's gross salary is less than Rs. 10000. Thus, your employee is doing so, please read the below-mentioned amendment of this act, as the limit of salary was Rs. 7500 till Sep 31st 2006 and from October 1st 2006, it was increased to Rs. 10000.

-----------------------------------------------------------------------------------
Wage ceiling for coverage of employees under ESI is raised from 7500/- per month to Rs. 10,000/-

The Government of India has amended the Employees’ State Insurance (Central) Rules, 1950 and the same is called `Employees’ State Insurance (Central) (First Amendment) Rules, 2006'

Accordingly the wage ceiling for coverage of employees under ESI is raised from 7500/- per month to Rs. 10,000/- per month, with effect from 1st October 2006. In other words all those employees who receive monthly salary of Rs. 10,000/- or below will be covered under ESI and the employer will have to contribute 4.75% on their salary.

I hope, it's clear. Dont worry, ESI is a benefit to you at the smallest expense from your side. Ask for an employer guide from the local ESIC office or your employer. Believe me, it's more than Good and worth your money.

warm regards,

Umesh Chaudhary
(welcomeumesh@yahoo.com)

srihari_rao - Member Since: Aug 2007
Hi,
What Mr.Umesh said is exactly right. Your employer is doing the right thing and it is statutory also. With the contribution of only 1.75% of Basic+DA, you can get the treatment from your nearby ESI hospital for yourself and your dependent family members and can also get the reimbursement of medicine cost as prescribed by ESI.
One thing you also should know that your employer is contributing 4.75%(which is more than your contribution) of Basic+DA towards ESI.
I hope this clarifies your doubt.
srihari rao
Quote:
Originally Posted by kirankumarr
i am getting 9250 rs as gross salary but the company is deducting esi of Rs.161,is it compulsory to deduct this. please let me know who can answer about this query.

kirankumarr - Member Since: Sep 2007
but sriharsha the % of deduction is 5.3 for the esi ie basic pay is 3000 & the deduction for esi is Rs.161. any way thankyou for your information.

viswanathp - Member Since: Jul 2007
My company is not dedcuting ESI , its a private ltd company ( IT and Recruiting), is it mandatory to deduct ESI irrespective of Act applicable to it.

gauri-hr - Member Since: Jul 2008
Is ESI % age followed differently in different states i.e is it changeable or different through state or central govt?

Found This Useful? +Vote Up This Page Via Google.  

Why Vote? User validation is extremely important for good content to prosper.
Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.




Explore Topical Knowledge Areas

Interesting Relevant Discussions


DISCUSSSION STATISTICS


4672
VIEWS

5
REPLIES

PLEASE KEEP YOUR CONDUCT PROFESSIONAL AND POLITE


3M Users, 100K+ Documents & 450K+ Discussions

Share »

Community Support & Professional Insights. Login or Register.
Email/Username     Password  

About Us - Advertise - Contact Us - RSS   On Google+  
All trademarks and copyrights held by respective owners. Member comments are owned by the poster.
Privacy Policy | Disclaimer | Terms Of Service
Facebook Page | Follow Us On Twitter | Linkedin Network