Harsh Kumar Mehta
Consultant In Labour Laws/hr
Apex Management
Labour Laws Consultants
Sr.accounts Executive
Senior Officer Personnel
+1 Other

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Hi, Ex: A person Gross Salary From Oct-14 to Dec-14 is Rs.14000/-, and he got increment in jan-15 is Rs.3000/-. So Total Gross sal of Jan-15 is Rs.17000/-. Shall i deduct esi 1.75% of 17000/- up to march salary , or shall i stop esi deduction from Jan-15. plz clarify ASAP.(apr to sept, oct to mar, is the esi 6 months periods. so my doubt is once enter in the 6month period , compulsory it will applicable the same by half year end, or not)
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1. Dear member, you should have submitted total details of wages of the concerned employee as per his pay slip/wage register. In the past, in some cases, it was observed that the "Gross Salary" so mentioned was wrongly noted and was actually so called "CTC".
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.
A person within in ESI limits continues to be under ESI till the end of the 6 monthly period ( in this case October - march) irrespective of his wage crossing the ESI limit. He only goes out of ESI limit in April.
Hope this helps.
Yes the ESI contribution will be applicable till March 2015, effective April 2015 you can forgo the ESI contribution since the salary is beyond the ceiling limit. Hope this clarifies your query
in this case as per ESIC rule ESIC contribution will deduct on 17000/- till March’15 after March. he will be exempt from ESIC.
There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under
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.
Hetal Solanki
The benefit rate (sickness or TDB/PDB) is not allowed beyond the maximum ceiling limit by ESIC then why only contribution beyond the ceiling limit ? Can some one clarify?
1. Dear Apex Management, at present there is no maximum ceiling limit regarding payment of banefits under ESI Act, 1948 and rules/ regulations framed thereunder. The rates of payments of benefits have been amended to %age system by amendment in ESI (Central) Rules, 1950 which was made applicable w.e.f. 1/7/2011.
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.
I have not seen any ceiling of wage to be member of ESI and also accrue the facility therein. Mr Harsh Kumar Mehta is right. where come this 17000/- pm has come. Seniors and Experts please spell out.
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