2. However, in view of facts submitted above, you are required to deduct contribution under ESI Act, 1948 and rules/regulations framed thereunder till close of contribution period i.e. upto 31/3/2015. Please ensure that amount of wages of Rs. 17000/- as mentioned above does not include "Overtime" before exempting any employee.
3. Contribution is required to be paid on total amount of wages of Rs.17000/-till close of contribution period as mentioned above.
There are two contribution period each of six month duration as under. Employee has to pay or get deducted for ESIC benefit.
Contribution Period Cash Benefit Period
1st April to 30th Sept. 1st Jan of the following year to 30th June
1st Oct to 31st March of the year following. 1st July to 31st December.
2. Therefore, the higher the rates of average wages in any contribution period, higher will be the rate of benefit in respect of cash benefits in the corresponding benefit period.