Harsh Kumar Mehta
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5th August 2014 From India, Bangalore
The ESIC contribution works on specified contribution period as specified by ESIC. The contributing wage period is April to September and October to March.
If the member has contributed in the begining of the any wage period and his wages/salary increased above the ceiling limit, bound to contribute till the end of the wage period.
EG:. Incase a employee has 15000/- or less during the month of April and in May or June his wage/salary increased to Rs.16k or more if any, he bound to continue to pay his contribution till September and will be out of coverage wef. October. Employer and employee both are bound to do so.
6th August 2014 From India, Bangalore
1. Please see proviso to section 2(9) of ESI Act, 1948 and also proviso to Rule 50 of ESI (Central) Rules,1952 which clarifies the issue raised by you.
2. There is no maximum limit/cap regarding ESI deductions during any contribution period. Therefore, even if the wages have been increased to Rs. 16000/-, the contribution on total Rs. 16000/- will be payable on prescribed rates till close of such contribution period.
6th August 2014 From India, Noida
Till Sept the deduction made would be on actual wages/ salary paid(as defined in ESI Act Sec 2(9) which normally excludes reimbursible elements).His rate for Benefits would also be correspondingly higher. In October he will be shown in Exempted Category and no deduction is to be made.
6th August 2014 From India, Gurgaon