E.S.I & P.F - CiteHR
Saswatabanerjee
Partner - Risk Management
Mukesh_azad
Labour Matters
R Devarajan
Human Resources Manager
+5 Others

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In case an employee’s salary increases above Rs. 15,000/- for only 3 months in a year due to increased wages paid on account of higher productivity, will he cease to enjoy ESI benefits.”
Dear Meenu
In case an employee’s salary increases above Rs. 15,000/- for only 3 months in a year due to increased wages paid on account of higher productivity, then employee will enjoy ESI benefits upto contribution period (means till 30th April & 30th September) and the management has to deposit his contribution atleast on Rs. 15,000/-.

Dear SIr,
I Have started asmall bussiness in hyderabd with around 10 employees and would like to open the an account of ESI & PF in hyderabad can you please suggest me how to go forward for this.
Regrads,
Md Younus

If anyone gets increament only for 3 months and his/her wages goes beyond Rs.15000/-, first we will have to see at which month his/her salary increased, if it increased in the middle month like May, then he will be under ESI as he has already contributed his April month ESI contribution and from May, ESI will be deducted from his/her salary on full wages, not on Rs.15000/-
Meenu, is this higher wages productivity linked bonus or a permanent increase in the wage rate payable to the employee ?
Hi,
Short term enhancement shall not be consider your normal increment. Once your contribution is running on within contributing period automatically it shall be continued till end of contribution period.so question does not arrise to waive up.

Dear Meenu,
what i understand by your statement that an employee has offered an enhancement due to productivity. It means the rise is not in form of increment. His/Her rate of salary is stable or say constant. In this situation one can not said to be an uncovered employee from the ambit of an act. You should have to deduct contribution on all the emoluments including productivity bonus, or otherwise u have to pay the productivity bonus in the form of incentive having gap for three months.Then it will not come within the purview of an act.
regards,
KIRAN KALE

Dear Md. Younus,
Your information is very short to explain the right opinion or advice.
If your business is a manufacturing unit then ;-
on using power your unit will be covered under ESI Act, but will not covered statutorily under EPF & MP Act as it required 20 employee in the unit.
Even though, you can apply for the coverage u/s.1(4) of the act voluntarily.
Suppose your unit is a shop or commercial establishment then provision of ESI act will be changed as the said act required 20 employee for coverage and there is no such a provision to cover the unit voluntarily as compare to EPF Act.
Regards,
KIRAN KALE

Hi,
I have total 5 yrs of experience in admin and secretarial work and i have 2 yrs of experience in HR. recently i have completed mba in hr. i want to choose payroll process because i am good in advance excel, pf, esi, tds and income tax. kindly suggest me for a payroll executive what things are required. what is the salary package in this field.

hi
Kiran is correct. an employee will be exempted from ESI only if there is any increase in his monthly salary by the way of increment, revision etc. in that case too, till the contribution period is over, an employee have to pay / remit his / her contribution to ESI corporation
R devarajan

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