From "gopihr" : Dear friends, I need the detailed eligibility criteria for an employee for ESI contribution. Please suggest any special salary structure to safe guard from ESI authorities.
16th February 2008 From India, New Delhi

ESI is applicable to factories employing 10 workers and other establishments employing 20.
Those drawing salary not more than Rs 10000 are covered.
The rate of employees' contribution is 1.75 % of salary and the employer's contribution is 4.75%
The salary is the sum paid in a month and all payments which are paid in regular intervals of not exceeding two months are considered. As such, Travelling Allowance is exluded from salary.
If you want to escape from ESI, you have to frame a salary structure above Rs 10000. BUT WHEN THE SALARY CEILING IS AGAIN REVISED BY THE GOVT. YOUR EMPLOYEES BECOME COVERED AND AT THAT TIME THE CONTRIBUTION PAYABLE WILL ALSO BE VERY HIGH.
For an employer it is always desirable to have ESI coverage because many compensation payable by the employer under the Workmen's Compensation Act, Maternity Benefit Act are taken on shoulder by the ESI Corporation aganist this 4.75% contribution payable by the employer to the ESIC.
Regards,
Madhu.T.K
16th February 2008 From India, Kannur
Dear Madhu,
Thanks for this valuable information.
Could you please illustrate ESI contribution is calculated on what part of salary. I mean to say Basic or Gross Salary or Net salary or CTC. could you please tell me also what components of salary is considered for ESIC calculation.
With best regards,
Manoj
19th June 2009
One clerificatioin is required. We have few employees who got retined on attaining age of 58 years. We had issued fresh letter to them for extension with a lumsum amount with no statutory obligation or Bonus, LTA etc.
For Pf they withdrawn their amount with no further obligation on company. Will they be covered under ESIC?
Bibek
5th June 2010 From India, Calcutta
Hello Sir/Madam,
I want to learn about Payroll. Can anyone please tell me, How can we calculate the PF and ESI. I have little bit knowledge about it. PF is calculated on the basis of Basic and ESI is calculated on the gross salary.
But What is the procedure to calculate it. I have read it. but I could not able to understand it Properly.
Please help me.
Thanks,
Rajwant
13th February 2013 From India, Chandigarh
dear raj
For Pf 12% + 13.61 % from employer
For ESI 1.75% + 4.75% on gross which is not more than 15.000/- salary( employee who is getting the salary below 15000/-)
And PT as per state PT act.
and TDS as applicable
13th February 2013 From India, Bangalore
Hello Venugopala B A,
Thanks alot for your response.
Can you please describe me about PF
"For Pf 12% + 13.61 % from employer"
12% have to pay Employee and Contribution of Employer(13.61%) is also divided into different segment or not?"
Please also provide your email id, I have also some more queries.
Thanks,
Rajwant
13th February 2013 From India, Chandigarh
Dear Seniors
,
please help...
we have 30+ employees in our company and registered for PF but not for ESI.
1. is it compulsory for us to register for ESIC? what will happened if not?
2. one more question, we are paying fix salary to some employees like Basic 12000+Conveyance 3000, are they also eligible for PF?
please advice
21st October 2013 From India, Pune
Dear All,
Our total employee strength is 85 but people falling under the ESI slab is just 5. Please let me know whether these employee should be covered for ESI or since our total employee falling under ESI is just 5 we need not cover them under ESI...Please reply at an earliest.
28th November 2013 From India, Bangalore
I am forming new sole proprietorship firm. I will hire engineers and supply the same to some companies on contract basis. I have got first order to supply 5 engineers for 1 year. I have not yet hired any engineer on my role but will do shortly.
Should I apply for ESI registration in advance before even not hiring? OR can I apply after hire and supply?
br
sanjay
16th October 2014 From India, Delhi


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