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Hello, Can anybody tell me that should we have calculate ESIC on overtime. Can we remove this component (OT) from pay slip for ESIC calculation. Thanks & Regards, Monali
Hi Monali, If you want to avoid ESI for OT, you can pay the same separately or after salary. regards raja
Thanks for your reply! But if we pay the OT seperately or after salary by cash or by cheque, then isnt it affect in balance sheet at the end of the year. Thanks & Regards, Monali
max shield for ESI is 15,000, so yes, as long as the gross salary is less than 15000 you should calculate the ESI for OT.
Thanks to You Ramnaresh!
But my question is different. Is it compulsory to pay the esic on OT. Because if we calculate OT on payslip then employer have to pay big amount for ESIC contribution. So please give another way for this if possible.
Thanks & Regards,

yes , it is compulsory to pay esic on ot. according the esic act 1948 it is compulsory or obligation to pay esic below 15000 rs/-. if you r showing the ot on wages slip and the gross salary below 15000/- you have to pay the esic on ot.
for example if your basic salary is 10000 and hra 2000 and your ot is 20 hour then you pay esic is 239 rs/- condition is that it should be show inthe over time register.

Dear Ms. Monali
Its compulsory to deduct ESIC on OT. You may avoid ESIC deduction on OT by paying OT amount separately by voucher. But if it is deducted during ESIC Inspection, you would not only have to pay the amount but also pay penalty & interest, which would be substantial amount. Its not only monetary loss but also a black mark on the reputation of the Organization
Ganesh S Iyer
Truth Always Prevails.

As per my understanding if gross :
1- Including OT remains within 15000/- - ESI will be deducted.
2- Including OT exceeds 15000/- - ESI will not be deducted
Kindly rectify my understanding both if wrong or right.

ESI will Not be detected For who is getting pay <15 k , ESI Will Be Calculated based on your MOnthly Fixed pay - Nothing To do with overtime payments - overtime payments comes under Incentive Category
Respected seniors
If one having a monthly salary of Rs 14500
During May he earns his salary 14500 & overtime 1000
During June he earns his salary 14500 & no overtime.
What will be the esic contribution treatment.
please help

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