We have around 130 workmen and due to heavy work load, they are doing OT every day, then they are getting salary around 27K to 28K every month.
But as it is for a temporary period i want them to continue in ESI, will there any problem if i pay there ESI even though they are exceeding the limit
From India, Hyderabad
But as it is for a temporary period i want them to continue in ESI, will there any problem if i pay there ESI even though they are exceeding the limit
From India, Hyderabad
Certainly, you cannot exit an employee from ESI if the salary exceeds Rs 21000 because of overtime wages. For coverage and non coverage the overtime wages will not be counted but for contribution of ESI the overtime wages will be considered. Therefore, you SHOULD pay ESI on the gross salary including overtime wages, say Rs 27000 or Rs 28000 and continue them under the scheme.
Remember: For coverage the OT wages will not be counted but for contribution it will be counted.
From India, Kannur
4193Remember: For coverage the OT wages will not be counted but for contribution it will be counted.
From India, Kannur
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ESI contribution rates lowering.pdf