Industrial Relations And Labour Laws
Raju Aggarwal
Assistant Manager Hr & Admin
Mangaer Hr
Korgaonkar K A
Sr. Hr Executive
+2 Others

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Hi seniors,
If an employee falls under ESI for 6 months and after that the gross of that employee exceeds Rs. 15000/- should ESI be paid till half yearly return of that particular year or can it be can be stopped once the rise has happened.

From India, Bangalore
Dear Premlathav ji,
You will get answer to your query in below given link:

From India, Mumbai
ESI should be paid till the half yearly return of that particular year.
let's say an employee mr. Abc got salary hike & gross sal. goes to 16000 in the month of june 13 then the esic should be paid until we submit the half yearly return in may 13 after that we can stop esic contr.
Nitesh verma

From India, Bangalore
Dear Nitesh ji,
Can you please throw some more knowledge on half yearly return, what is it? What is the period? When and how is it to be submitted and why? If not submitted, what will happen to you, to ESI and to IP?
Your reply will help the members to understand the ESI Act.

From India, Mumbai
It is not half yearly return but contribution period. That means, an employee whose salary (ESI qualifying salary without considering unusual variable pay, like incentives, Overtime pay, and other amounts like washing allowance which are excluded from wages) crosses the limit (at present Rs 15000) in the middle of the contribution period (we have two contribution periods, viz, April to September and October to March of the following year) we have to contribute till the end of the end of the contribution period. That is, if salary crosses Rs 15000 in June, contribution should be paid till September and if in the month of October salary is increased then contribution should be paid till March, ie, end of the contribution period.

Salary of coverage should only be taken as salary for out of coverage. If salary increase is due to increase in any variable component in any month, that should not be taken as increase for the purpose of out of coverage. Variables which are paid in an interval of not more than 2 months should be taken as part of salary whereas overtime will qualify for contribution though for deciding coverage the same is not taken in to account.



From India, Kannur
Dear Sir,
I agree with your views but i have one dought if any employee covered under ESI he/She left month of July 12. then what will we do. its ESi contribution will be stop at the timing of leaving service of the company or not.

From India, Gurgaon
If the employee leaves in the middle of the contribution period his contribution will automatically stop from the last day of his leaving.
D. Phani Kumar
Vasavadatta Cement
Gulbarga Dist, Karnataka.

Yes you have to pay the esic amount till next half yearly return.
From Saudi Arabia, Jiddah
H Please note that if the employee leaves in the middle of the contribution period his contribution will automatically stop from the last day of his leaving. Sohan
From India, New Delhi
you no need to pay ESI from date of leaving if employee left the organization, if employee is working and he/she got salary in May 14800 if he/she got salary in June month 19000 or 20000 what ever increase he/she will get you have to deduct 1.75% from gross and you have to pay with 4.75% from employer contribution until next half yearly returns submit
From India, Bangalore

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