Dear Navneet
here what you sed is wrong if an employee salary is 10500 he is not elegible for ESI.if an employee salary is 9500 he is eligible candidate.if you given 500 as Washing or Uniform allowance.so here you can caliculate the ESi amount on 9000 only.
Note: If any employee is covered under ESI then you can deduct washing allowance from Gross salary
if employee salary is 10500 he not ESI candidate so you no need to deduct 500.and no need to pay ESi.
who are covered under ESI for those people you can pay ESI contribution with out washing allowance.
in your example that 10500 person is not covered under ESI
From India, Visakhapatnam
6here what you sed is wrong if an employee salary is 10500 he is not elegible for ESI.if an employee salary is 9500 he is eligible candidate.if you given 500 as Washing or Uniform allowance.so here you can caliculate the ESi amount on 9000 only.
Note: If any employee is covered under ESI then you can deduct washing allowance from Gross salary
if employee salary is 10500 he not ESI candidate so you no need to deduct 500.and no need to pay ESi.
who are covered under ESI for those people you can pay ESI contribution with out washing allowance.
in your example that 10500 person is not covered under ESI
From India, Visakhapatnam
i am Shyam Sooraj. I am having some confusion related to gratuvity calculation. Can u help me to drill out this delima
From India, Mumbai
From India, Mumbai
Dear All,
Thanks for your replies. I have discussed these point with my management but they said if the gross salary is 11100 then basic salary should be 10000 rs. If the basic salary will be 10000 rs. then pf amount and bonus amount will increase. Seniors, please suggest what should we do in this case.
Suman:icon1:
From India, Gurgaon
Thanks for your replies. I have discussed these point with my management but they said if the gross salary is 11100 then basic salary should be 10000 rs. If the basic salary will be 10000 rs. then pf amount and bonus amount will increase. Seniors, please suggest what should we do in this case.
Suman:icon1:
From India, Gurgaon
Dear Suman,
The story of ESI deduction does not end here as have been opined by some of our friends. Please note that there are two contribution periods in a year. Now if in the first month of the starting of any contribution period the gross salary is > than Rs. 10,000/-, there will be no deduction of ESI contribution. Now if at any point of next remaining contribution period, in any particular month, the salary is < than Rs. 10,000/-, ESI deduction will have to be made and continue for the rest of the contribution period- despite being his salary again goes above Rs. 10,000/-
In brief,once deduction starts at any time during a contribution period, it will continue till end / expiry of the contribution period( of 6 momnths).
D.K.Moitra
Kolkata.
From India, Calcutta
The story of ESI deduction does not end here as have been opined by some of our friends. Please note that there are two contribution periods in a year. Now if in the first month of the starting of any contribution period the gross salary is > than Rs. 10,000/-, there will be no deduction of ESI contribution. Now if at any point of next remaining contribution period, in any particular month, the salary is < than Rs. 10,000/-, ESI deduction will have to be made and continue for the rest of the contribution period- despite being his salary again goes above Rs. 10,000/-
In brief,once deduction starts at any time during a contribution period, it will continue till end / expiry of the contribution period( of 6 momnths).
D.K.Moitra
Kolkata.
From India, Calcutta
HI..
ESI will be not applicable to those employee whose gross salary (exept Washing allowance) is more then 10000/-
But if any employee is working in our premises and his salary is less then 10000/- then you increse his salary more then 10000/- between the contribution period of ESIC (Contribution period is 1) Apr to Sept 2) Oct to March) it meanse in May to Sept or Nov to March then you are liable to deduct his ESIC up to ending of contribution period wether his salary is more then 10000/-
You can get examption if you give effeect from back date.
i.e.
Mr. Ramesh is working in your establishment and his gross salary is 9500/- and he is an employee under ESIC act. Now In the May or Nov month company give him increment of Rs. 1500/- Now his gross salary will be 11000/- but still he is liable to pay contribution on gross salary up to Sept or March month. But you may give him examption if you give his increment from the back date means from April or Oct..
From India, Pune
ESI will be not applicable to those employee whose gross salary (exept Washing allowance) is more then 10000/-
But if any employee is working in our premises and his salary is less then 10000/- then you increse his salary more then 10000/- between the contribution period of ESIC (Contribution period is 1) Apr to Sept 2) Oct to March) it meanse in May to Sept or Nov to March then you are liable to deduct his ESIC up to ending of contribution period wether his salary is more then 10000/-
You can get examption if you give effeect from back date.
i.e.
Mr. Ramesh is working in your establishment and his gross salary is 9500/- and he is an employee under ESIC act. Now In the May or Nov month company give him increment of Rs. 1500/- Now his gross salary will be 11000/- but still he is liable to pay contribution on gross salary up to Sept or March month. But you may give him examption if you give his increment from the back date means from April or Oct..
From India, Pune
dear if gross is 11100 and basic is 10000 and other 1100 is Overtime allowance then that employee is coverable under ESI and necessary deduction must be made BYE ramesh
From India, Madras
From India, Madras
Dear Rajesh, Please herewith find the enclosed file of Gratuity PPT.I think it will clears all your doubts. Have a great day Warmest Regards, Mohan.M.S
From India, Madras
From India, Madras
Dear Mr Ramesh. If any employee is covered under esi act n he is paying esi contribution then if he is geting gross morethen 10000 including overtime then he is liable to pay esi. If Mr X his gross salary is 10000 n also geting overtime of 1100 then he has to pay esi cont. Overtime is not wages under esi act.
Posted via Mobile Device
From India, Pune
Posted via Mobile Device
From India, Pune
Hi Suman!
See there is another issue into this.. It's quite right that 10000/- is the Ceiling for ESI.. and employee getting salary above ceiling can't get ESI membership BUT..
If someone's salary is increased from :icon13:<10000/- to :icon13:>10000/- then ESI deduction will continue till September/March, till then memberships are not substracted.. and meanwhile, ESI will be deducted on total gross salary whether it is 20000/-..
Regards,
Jenender Chawla
From India, New Delhi
See there is another issue into this.. It's quite right that 10000/- is the Ceiling for ESI.. and employee getting salary above ceiling can't get ESI membership BUT..
If someone's salary is increased from :icon13:<10000/- to :icon13:>10000/- then ESI deduction will continue till September/March, till then memberships are not substracted.. and meanwhile, ESI will be deducted on total gross salary whether it is 20000/-..
Regards,
Jenender Chawla
From India, New Delhi
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ESI deduction.doc
ESI contribution rates lowering.pdf