Madhu.T.K
Industrial Relations And Labour Laws
Chandan2ykpankaj
Manager - Hr
Amith R Murthy
Hr Executive
Rajesh_annaunivmba
Hr Generalist
Birabara Sahu
Professional
+2 Others

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Hi,
Kindly let us know whether ESI to be contributed on Gross salary or Basic + DA
If we are existing from past 5 years but not registered as on that date but has taken the registration from march 2008 then whether ESI Contribution is applicable from the date of incorporation or from the date of registration, if it is from the date of incorporation then what is rate of interest applicable.

Hi,
Kindly let us know whether ESI to be contributed on Gross salary or Basic + DA
If we are existing from past 5 years but not registered as on that date but has taken the registration from march 2008 then whether ESI Contribution is applicable from the date of incorporation or from the date of registration, if it is from the date of incorporation then what is rate of interest applicable.

For calculation of ESI contribution wages means Basic + DA + any special allowance + HRA and such other allowances which are paid at intervals of not more than two months but doesnot include Travelling expenses. For deciding coverage, overtime wages paid shall not be taken but for deduction and contribution of ESI Overtime Wages should also be taken. As such if an employee earns Rs 12000 per month of which Rs 2001 was his OT wages then he will be covered by ESI. But for contribution OT will be taken as wages earned.
ESI is covered when the number of employees of an industrial undertaking becomes 10. As such the date on which the number of your employees crossed 9 (or became 10) shall be the date of coverage and not the date of commencement of business. Usually, the ESIC authorities will call on you to pay contributions with retrospective effect with interest.
Regards,
Madhu.T.K

Dear Friends,

ESI contribution is on Gross salary if it is upto Rs. 10,000/-

For Mr. Basu:- It is compulsory to register the organization in ESI if the strength of employees are 20 or above (only those employees whose salary are upto Rs. 10,000/-) As your organization is 5 years old it is compulsory to know that what was the strength of employees in that period. If it was below 20 then there is no need to worry but if it was 20 or above then company have to pay the previous ESI amount to ESI authority with required fees and penalty.

I have collection of ESI forms if you want then let me know!!

Regards

Pankaj Chandan

hi :) am pursuing my final yr MBA tis buk is really worth 4 me thx 4 havin posted it at t right time... could u post more books about how to interview t candidates as a H.R with various assesment tests and their questions.. kindly keep on posting such books
Bye
take care

Dear Chandan,
I am just starting my career as a HR Professional. Hence i want to have such forms. If u could forward it to my mail ID, then it would be a great help.
Regards,
Veer
Email:

ESI is calculated on gross upto Rs.10,000 and if the gross is Rs. 10,000/- then also applicable for ESi. As soon as the gross salary becomes 10,001 and more the employee is not applicable for ESi.
Other things as mentioned by Mr. Pankaj Chandan

Please refer to the wording" as soon as the gross salary becomes Rs 10001" in the posting of prachiborkar. The out of coverage will not take place immediately on crossing the salary limit but the employee will continue to be covered by ESI till the end of the contribution period. In ESI there are two contribution period, viz, April to Sept and Oct to March. If the salary crosses Rs 10000 in April, he will have to contibute till Sept and if the salary increase takes place in Oct, then he is covered till March next year.
Regards,
Madhu.T.K

Hi Madhu! This is jayanthi:). Did you work with any company in coimbatore? Regards, jayanthi
Dear Basu,
I would like to add in madhus' sentence that esic calculate on gross salary excluding the washing allowance. Furthere more i think Pankaj stated that esic applicabel when there is 20 or more employee, i think as per esic act it is 10 or more.
Maximumm Wages Limit is 10,000/- pm
Employee Contr. - 1.75%
Employer Contr. - 4.75%
Esic applicable to your organaisation from the date on which your manpower goes 20 or more. one more think i would like to know whether your organaization comes under the location of esic zone.
Thanks,
Sushil


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