Those who are drawing more than Rs.15000 gross salary will be exempted
If your area is not covered area under ESI, then you will be exempted. But, However, you have to cover them at least some coverage of medical insurance
From India, Madras
7If your area is not covered area under ESI, then you will be exempted. But, However, you have to cover them at least some coverage of medical insurance
From India, Madras
Thank you Mr. Suresh for your response. But my question is that there is exemption from paying ESI contribution even salary is below Rs.15000/- . Pl. clarify. Regards Guru
From India, Visakhapatnam
From India, Visakhapatnam
If your company situated area is not come under ESI preview or your company employees strength is 20 below or you have own hospital facility, then ESI is exempted
From India, Madras
From India, Madras
sory mr.suresh , we don't have any own hospatil and our employees strenth is 1200, we are paying esi to all employees who salary bellow Rs.15000/- and our company is under esi. purview. still there is exemption.
Exp: one employee ernings Rs. 395 per month and his attdance only 3 days in that month. esi contribution is required to pay r not.
From India, Visakhapatnam
Exp: one employee ernings Rs. 395 per month and his attdance only 3 days in that month. esi contribution is required to pay r not.
From India, Visakhapatnam
Mr. HR Guru,,
Contribution to ESIC Fund:-
Both employee and employer have to make contribution to ESIC. The employer has to deduct contribution from wages of employee and pay to ESIC both the employer’s contribution as well as employee’s contribution [Section 39(1)].
The contribution is payable for ‘wage period’ i.e. the period in respect of which wages are payable to employee [Section 39(2)]. Normally, ‘wage period’ is a month.
The Employee’s contribution is 1.75% of wages. It should be rounded off to next 1 Rupee. Employees contribution is not payable when daily wages are below Rs. 15/-.
Employer contribution is 4.75% of total wage bill of all employees in respect of every wage period. Thus, it is not necessary to calculate employer’s contribution separately for each employee.
4.75% of gross wages should be calculated and rounded off to next 1 Rupee. Employees drawing wages lower than Rs. 25 per day do not have to pay employee’s share.
The contribution has to be paid within 21 days from close of the month. It is payable by a challan in authorized bank.
If the contribution is not paid in time, interest @12% is payable [Section 39(5) (a)].
In addition, ESIC authorities can impose ‘damages’ varying 5% to 25% of arrears of contribution u/s 85B.
Employer cannot deduct employer’s contribution from the salary of employee [Section 40(3)].
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All the best
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From India, Vijayawada
Contribution to ESIC Fund:-
Both employee and employer have to make contribution to ESIC. The employer has to deduct contribution from wages of employee and pay to ESIC both the employer’s contribution as well as employee’s contribution [Section 39(1)].
The contribution is payable for ‘wage period’ i.e. the period in respect of which wages are payable to employee [Section 39(2)]. Normally, ‘wage period’ is a month.
The Employee’s contribution is 1.75% of wages. It should be rounded off to next 1 Rupee. Employees contribution is not payable when daily wages are below Rs. 15/-.
Employer contribution is 4.75% of total wage bill of all employees in respect of every wage period. Thus, it is not necessary to calculate employer’s contribution separately for each employee.
4.75% of gross wages should be calculated and rounded off to next 1 Rupee. Employees drawing wages lower than Rs. 25 per day do not have to pay employee’s share.
The contribution has to be paid within 21 days from close of the month. It is payable by a challan in authorized bank.
If the contribution is not paid in time, interest @12% is payable [Section 39(5) (a)].
In addition, ESIC authorities can impose ‘damages’ varying 5% to 25% of arrears of contribution u/s 85B.
Employer cannot deduct employer’s contribution from the salary of employee [Section 40(3)].
<link outdated-removed>
All the best
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From India, Vijayawada
Hi,
Limit of ESIC which is 15000/- depends on Fixed Gross Salary of the employees.
Its not matter if employee earned salary less than or more than 15000/- in a particular month...
For Example..
X is an employees which fixed salary is 16000/month (Which is more than 15000/-). He is not eligible to get deduction for ESIC. If he got 14000/- in the month of Y than there is no deduction for ESIC.
From India, New Delhi
Limit of ESIC which is 15000/- depends on Fixed Gross Salary of the employees.
Its not matter if employee earned salary less than or more than 15000/- in a particular month...
For Example..
X is an employees which fixed salary is 16000/month (Which is more than 15000/-). He is not eligible to get deduction for ESIC. If he got 14000/- in the month of Y than there is no deduction for ESIC.
From India, New Delhi
As per our law point of view esic is compulsory. and esic non - cover able area means workmen compensation act will be applicable for industry.
From India, Madras
From India, Madras
Coverage Period Wage ceiling upto
Upto 27.1.1968 400
28.1.1968 to 29.11.1975 500
30.11.1975 to 26.1.1985 1000
27.1.1985 to 31.3.1992 1600
From 1.4.1992 3000
From 1.1.1997 6500
From 1.4.2004 7500
From 1.10.2006 10000
From 1.05.2010 15000
Download ESIC 72A
Rate of contribution
From India, Madras
Upto 27.1.1968 400
28.1.1968 to 29.11.1975 500
30.11.1975 to 26.1.1985 1000
27.1.1985 to 31.3.1992 1600
From 1.4.1992 3000
From 1.1.1997 6500
From 1.4.2004 7500
From 1.10.2006 10000
From 1.05.2010 15000
Download ESIC 72A
Rate of contribution
From India, Madras
Refer Mr.Krishna Nandan question, where X fixed salry is Rs.16000 and one month if he underwent LOP then his salary is less than Rs.15000 then he will not come under ESI as he is not a ESI member and he is out of ESI coverage. It is only the particular month his salary is below Rs.15000 even it happens again then need not deduct ESi
From India, Madras
From India, Madras
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ESI contribution rates lowering.pdf