Harsh Kumar Mehta
Consultant In Labour Laws/hr
Libihpd
Finance
+4 Others

PRIME SPONSOR - FACTOHR - Customised Payroll, GPS Enabled Attendance, Travel, Performance Management, HRMS. Explore Features
ESIC Contribution in respect of arrears of wages ?
Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
I would like to know ESIC Contribution in respect of arrears of wages & ESIC arrears calculating period ?
Sir,
As per section 2(22) of ESI Act, 1948 the term 'wages' includes all remunerations(except as specifically excluded in said section) paid or payable. Hence, contribution on arrears of wages is also payable under provisions of said Act.
However, in my opinion, the contribution on such arrears is payable since the date when such revision in wages is announced or wages are reported pending for payment.
Before, however to be on safer side, taking final decision in the matter it will be more appropriate if matter is taken up with the appropriate Regional Office of ESIC of your area for decision in the matter so that at the time of inspection of records, such omitted wages are not pointed out by the Inspecting Officer.
For calculating period of contribution kindly see section 2(23) of said Act which defines 'wage period' as the period in respect of which the wages are ordinarily payable in respect of an employee.
With regards;
Harsh Kumar Mehta
Today I got the clarification regarding the same from ESIC Maharashta.......
"As and when any increase in the wages/ remuneration is declared with retrospective effect, the liability towards payment of contribution accrues only in the month in which the decision is announced and no contribution is payable on the arrears pertaining to the period prior to the month of declaration/ announcement".
1.No contribution is payable on arrears of wages due to wage revision as a settlement or agreement to take retrospective effect.
2.However contribution is definitely payable on annual/periodical incremental arrears which is declared belatedly
S.SANKARALINGAM.
Retd.Sr.DY.DIRECTOR,ESIC
ADVOCATE & LABOUR LAW ADVISOR
Mobile 09790754727
Employees are not benefited by the payment of contribution in respect of his arrears for previous years because by the time of payment the contribution-benefit periods based on which cash benefits are paid ,would be over.
Varghese Mathew
What will happen if husband and wife is employed and individually their salaries are deductable as per ESI limit. Can any one exclude under the Act? Please clarify.
If husband and wife are employed and their salary is individually less than Rs 15000/-(as on today) they are liable to be covered under ESIS and there is no provision to exclude one of them.If any one is excluded (even if there is provision in future),the parents of the excluded employee will not get any medical benefit.
Varghese Mathew
9961266966
Labour Law Adviser
Trivandrum
I agree with the words of Mr.Varghese.There is no provision to exclude one. As per ESIC Act “ EMPLOYEE ” means any person employed for wages in or in connection with the work of a factory or establishment to which this Act applies . It only talks of the employees contribution who is working in the establishment, even though both the husband and wife work in the same establishment the contribution has to be remitted to the ESIC if their salary is up to Rs.15,000/-
Is the limit of Rs.15000 raised, or likely to be raised, to Rs.25000 ? Already some news is spread all over, hence this query.
PRIME SPONSOR - TALENTEDGE "Interactive Anywhere Learning". Executive courses from top reputed institutes like IIM, XLRI, MICA. View Courses

Add Reply Start A New Discussion






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™