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madhumita.barua
3

Hi all
Pls provide information on the limit of salary for ESI deduction
In my company as of now we are exempting ESI for employees whoever is getting above 10000 Rs. i.e. 10001 onwards.(CTC per month)
But a newly joined Accounts person has proposed to deduct ESI for the same employees as there in hand limit is not exceeding 10K
In this case we have to revise the salary of many of our employees.
Plz suggest

From India, Bangalore
prashant1314
46

In hand salary will not be taken into consideration for ESI deduction only payslip salary i.e. gross salary will be taken into consideration. There is no need to incrase limit.
From India, Pune
Madhu.T.K
4193

The CTC may include employer's contribution to EPF, medical allowance (which may be paid quarterly), travelling allowance and even gratuity payable at the time of discharge. This is not the salary for the purpose of determination of ESI or EPF. Find whether the salary without above parts of CTC is more than Rs 10000. If yes, then only you are uncovered, otherwise, you are covered by ESI.
Regards,
Madhu.T.K

From India, Kannur
priyadarshininaik
1

Dear All,
I want to know to whom ESI Act is applicable.
As per act it states that, if Employee Gross salary exceeds 10k than ESI is not applicable. How about the companies
Our company is having 45 employee out of which less than 20 are drawing Gross salary of Rs. Less than 10,000. In this case whether we are supposed to register for ESI or not. I have heard that If employee Gross Salary exceeds more than 20(who are drawing less than 10k) then we are supposed to register or else we need not have to go for ESI
Please clarify on the same

From India, Bangalore
Madhu.T.K
4193

Under ESI only establishments are covered and for which the salary paid is immaterial. If you employ 10 or more workers then your establishment is under ESI schemes. Let there be uncovered employees, those receiving 10K, but establishment is covered under the scheme.
Regards,
Madhu.T.K

From India, Kannur
hiren chheda
11

HI ESI ACT APPLIES WHEN FOR ESTABLISHMENT EMPLOYING 20 OR MORE EMPLOYEES DRAWING LESS THAN 10K AND IN CASE OF FACTORY 10 OR MORE EMPLOYEES DRAWING 10K HIREN CHHEDA 09821078457
From India, Mumbai
V_Sathyanarayanan
4

Hai all,
The ESI Ceiling limit has been revised from Rs. 7500/- to 10000/- with effect from 01.10.2006. The ESI will be exempted those who drawing gross salary exceeding Rs. 10K.
Best Regards
V Sathyanarayanan

From India, Madras
sanjeev kwatra
11

Hi
The ESI limit is 10k and if a employee is getting salary 10000+ ESI will not be deducted from his salary
Sanjeev Kwatra
[IMG]https://www.citehr.com/misc.php?do=email_dev&email=c2FuamVldl9hYXJlc3NAcm VkaWZmbWFpbC5jb20=[/IMG]

From India, Delhi
vissumba
2

hi, Esi Limit was less then or equle to 10000/- Gross. ESI Calculates on Gross Salary, Not on CTC. With Regards, Vishnu
From India, Hyderabad
Amith R Murthy
16

Dear Madhumita,
The main point to be clarified for you is Rs 10000 limit is applicable on Gross and not on CTC. If CTC is Rs 10000 than the gross will certainly come down to below Rs 10000 and in such case you need to deduct ESI. Hope it is clear for you now.
Regards
Amith R.

From India, Bangalore
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