ESI Payment For Wages Above Rs.15,000/- P.m. - CiteHR
Saswatabanerjee
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Harsh Kumar Mehta
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Kishorkulkarni
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In case of PF deduction, limit is 12 % contribution (Rs.780/- ) probably by both employer & employee, unless both or any wants to contribute more.
Is there any such provision for max. deduction for ESI, when wages are beyond the limit of Rs.15,000/- per m.
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Hi Dadusha,

First of all for PF, its not maximum or minimum, its just 12% and not limited to Rs. 780. Its rather optional to contribute above this amount if employee's basic is more than Rs. 6500/-. The employer can restrict the basic for PF at Rs. 6500/- but since now a days in most of the companies, both the shares, i.e. employee's share as well as employer's share, are a part of CTC, even the employers do not restrict it to the basic of Rs. 6500/- but it is to be @ 12%. The major benefit of higher contribution goes to employee because the PF contribution is non-taxable when it comes to filing IT return.

As long as ESI is concerned, pls be informed that in a recent development, the ESIC has increased the upper limit of wages covered for ESI deduction from Rs. 15,000/- to Rs, 25,000/-. However; in case the employee's consolidated salary reach beyond the maximum wages, i.e. Rs. 25,000/-, it doesnt remain compulsory for employer to keep contributing. The names of such employees whose wages cross the maximum salary, can be shown in the next ESI returns.

Raj..
Sir(s),
I may inform that Ministry of Labour & Employment, Government of India, has not so far issued notification enhancing the wage ceiling under Central Rules framed under Employees' State Insurance Act, 1948.
Therefore, the wage ceiling under ESI Act, 1948 as on date is still Rs,15000/-.
The contributing member as above may kindly see and may like to advise if I am wrong.
With kind regards;
The pf contribution of 12 % of salary is the minimum percentage. However, the employee and also the employer, if he wishes, can contribute over and above the rate of 12 %. That is one can contribute up to 20 % of Salary, after completing certain formalities with PF Office. In short, there can be higher percentage of contribution as well as contribution can be over and above Rs. 6500.

As regards ESI, I have sent a suggestion to ESI Office, to formulate the policy in a such a way that all employees working in an establishment should be covered. However, the contribution shall be restricted to the maximum limit of salary ( presently Rs. 15000, but likely to raise to 25,000). In other words, what I have proposed that If an employee is deriving salary say Rs. 40,000 p. m., then he should be covered under ESI Scheme, but his contributions should be restricted to the limit i. e. Rs. 15000. So he will be entitled to benefits of ESI up to 15,000 only. However, I have not received any reply form the ESI Corporation.
Esic is computed on gross salary, not on a salary with a limit
So, once after the salary limit of 15000 is breached, the contribution will stop at the end of the 6 month contribution period. However, while it is paid, it will. Be on actual limit
Please , if you people can not guide any one then stop sending these types of confusing posts. Who told you theat ESI ceiling is enhanced to Rs 25000 /-? Do you think that this website is the only platform to show that you are All rounder in HR ???
Enhancement is proposed but notification is not yet published ....as far as my knowledge is concern..So please do not confuse our friends dear.........you people is about to kill our friends who is seeking your valuable comments.......his/ her employer will kick him/her out if he propose his/ her employer to follow your rule ......my dear friend RAJ ....
Please do not circulate wrong information to new members or people who do not know about the subject matter. As Mr. Kamal Dutta said it is still 15000. There should not be any confusion in this regard. Notification regarding the new ceiling is awaited.
Dadusha,
Do you want to ask about maximum limit of ESI coverage ?
If yes, then there is a maximum limit of Rs. 15000/- in law.People having more than gross salary of Rs.15000/- are not liable to avail the benefit of ESI. But you can wait till this budget, may be this limit could be accessed ed up to Rs.25000/-
Sir(s),
I may further clarify that the enhancement of wage ceiling in Rule 50 of ESI (Central) Rules, 1950 is carried out only by the authority of Ministry of Labour & Employment, Central Government after issue of an intention notification for a period of 30 days. After elapse of a period of 30 days only, final notification is expected to be issued by the Central Govt.
I may further submit as per information I have come to know, still the said Intention Notification has not been issued by the Central Govt. Therefore, the enhancement of wage ceiling under ESI Act is expected only after intention notification is issued.
I have already written in my remarks to correct me if I am wrong.
With kind regards;
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