Salary Period Apr 2010
Gross Salary 16000
LOP Days 0
Eligible Gross Salary 16000
Salary Period May 2010
Gross Salary 16000
LOP Days 6
Eligible Gross Salary 12800
In above case, during the month of April 2010, the Eligible Gross Salary is greater than ESI Salary Limit of Rs.15,000/-/ during May 2010; the Eligible Gross Salary is lesser than ESI Salary Limit due to Loss of Pay. In such case, is it necessary to deduct ESI on Eligible Gross Salary?
Thanks in Advance
Prahalatha Rao

From India, Bangalore
No need to pay, since if your paid or payable salary, if u worked for all the month, if ur salary is more than 15000=00 u will not come under ESI. With the reasons such as loss of pay if you draw less than 15000=00 in a particulars month, no need to pay ESI Contn...........since your monthly wages is morethan 15000=00
From India, Hyderabad
Dear Prahalath,
As per ESI Act the wage ceiling is Rs.15,000/-.i.e. your gross salary should be equal or less than Rs.15,000/-to eligible for ESI. But while calculating ESI amount you need to take gross earnings (after deduction of LOP). So In Rs.16000/- as gross salary, you need not worry about ESI.

From India, Madras
Hi Prahalatha,
You don't have to deduct ESI in the above case. There is no correlation between LOP Deduction and ESI Slab of 15000. Further, if that employee quits on 15th of the month, then the eligible gross for 15 days (considering no notice period clause) will be only 8000 INR and during F&F you don't have to deduct ESI.
Cheers and BRgds,
GPS

From India, Bangalore
Anonymous
If an employee is having LOP but actually is monthly salary is more than 21000/- but due to Loss of pay he earned below 21000/- can we deduct ESI for him
If we don't want to deduct can you pls provide the Government rule copy to me.
Jagathprabhu

From India, Chennai
Dear Mr jagath Prabhu, Firstly, you should have covered an Employee under ESI Act by generating TIC/ESI Insurance Number in respect of such Employees drawing Salary below the coverage limit, which is presently @ rs21,000/-PM & BELOW.Only for such Employees, you have to make ESI Deduction.Hope this clarification, will suffice
Before resorting to ESI Deduction, determine whether he comes under the purview of ESI Act by taking in to account Monthly Gross salary

From India, New Delhi
Salary Period Apr 2010
Gross Salary 16000
LOP Days 0
Eligible Gross Salary 16000
Salary Period May 2010
Gross Salary 16000
LOP Days 6
Eligible Gross Salary 12800
In above case, during the month of April 2010, the Eligible Gross Salary is greater than ESI Salary Limit of Rs.15,000/-/ during May 2010; the Eligible Gross Salary is lesser than ESI Salary Limit due to Loss of Pay. In such case, is it necessary to deduct ESI on Eligible Gross Salary?
No need to pay, since if your paid or payable salary, if u worked for all the month, if ur salary is more than 15000=00 u will not come under ESI. With the reasons such as loss of pay if you draw less than 15000=00 in a particulars month, no need to pay ESI Contn...........since your monthly wages is morethan 15000=00
Can you able to provide any Government order or rule in ESI for the above solution is provided. If you have pls forward to me.

From India, Chennai





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