Madhu.T.K
Industrial Relations And Labour Laws
Stephen_7
Senior Officer - Hr
Rajusharadha@yahoo.com
Managing Director
Saurabhpayroll
Payroll Head
MEERA Devi
Administrator
+1 Other

Dear Sir,
In my organization there are some employees whose salary upto 14999/- per month and we deducting their ESI and PF per month. We deducted ESI of April-2015 without any increment which had to pay to them. We increase their salary after processing the payroll for the month of April-15. now my question is :
1. Should i deduct their ESI if their salary cross the limit of 15000/- ?
2. Should i mention him as a left employee to stop ESI deduction ? we have deduct ESI in april-15 , is it necessary or any compulsion that we will have to deduct their ESI upto September 2015 ??
3. In the 2nd Case if we mention them as a left employee then what will be happen ? is there any notice will send by ESI and PF Authority ?
Please clear my question and doubts .
Regards,
Saurabh
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M still awaitng the answers as i have to process the payroll for May-2015. Saurabh
1. Should i deduct their ESI if their salary cross the limit of 15000/- ?
You cannot deduct ESIC for the employees whoever is drawing more than Rs. 15k gross. You can cover them under mediclaim or WC policy, if required.
2. Should i mention him as a left employee to stop ESI deduction ? we have deduct ESI in april-15 , is it necessary or any compulsion that we will have to deduct their ESI upto September 2015 ??
In online employer portal of esic website, there will be drop down menu in "reason for zero working days" and select "out of coverage" and the member will be removed.
3. In the 2nd Case if we mention them as a left employee then what will be happen ? is there any notice will send by ESI and PF Authority ?
When you mention that the employee is an out of coverage, then you dont need to send any letters to esic and epf authorities.
Dear Saurabh,
You dont need to deduct the ESIC amount from the employee's salary.
But yess, you have to deduct ESIC upto sep-15 from employer end only.
on the basis of one day salary(before increment which is less then 15000)you can deposit their ESI.
suppose if employees last salary before increment was 14999.
you can show:
Total working days-1
ESIC Salary- 14999/31*1=484
for PF, now the ceiling limit is revised upto 15000,if an employee is covered under PF and his basic is revised from 12000 to 18000 in this case you can fixed the PF amount on 15000 i.e 1800. As per EPFO act once an employee is enrolled in PF cannot be exempted from the same.
seniors please correct me if i am wrong somewhere!!
Priyanka
Dear Saurabh,
You can't exempt any employee from PF by revising his basic salary if he is already enrolled. In case of ESI you can opt for OUT OF COVERAGE option for reason of zero working days. (IP will not appear from next contribution period. This option of out of coverage is valid only if Wage Period is April/October. In case of any other month then IP will continue to appear in the list.)
Regards,
Jai Sharma
Thanks all of you for your reply .
But I am not satisfied from your answer as I checked carefully from some sites that after beginning of the contribution period (April to Sept and Oct to March) shall continue to be an employee until the end of that period.
Kindly check the below links :
1. https://www.citehr.com/459252-esic-l...tinue-pay.html
2. What if the ESI salary goes above Rs 15,000 during the contribution period? - Hinote Systems - Outsourced Payroll Services & Online Payroll Software
3. [url] http://esicmaharashtra.gov.in <link outdate - home link added>
Kindly check the “serial number 28”
4. http://www.esicdelhi.org.in/docs/new...APTER%20VI.doc
Kindly check the 1st Paragraph of 2nd Page.
Hence check above all the links and kindly give me a satisfactory answer.
Regards,
Saurabh Srivastava
Sir
1. Since you are increasing the salary >Rs. 15k effective Apr 15, no need to deduct ESI
2. Since you have increased the salary after processing payroll and paid to them for Apr 15 i.e. in the same month you can very well reprocess the payroll for Apr 15 and pay the ESI deduction to the employees next month's salary.
3. If you have given increase in salary to the employees from Apr and the same has been paid from May salary you need to deduct ESI contribution from the concerned employees salary till Sep even though they have exceeded Rs. 15k pm.
4. For no reasons you should not mention as left employee when a person is very much working with us.
Hope I have cleared your doubts.
Even if employee salary within contribution period (April-September & October-March) increases beyond Rs. 15000 his contribution on full wages should be deducted from her/ his salary.
Shrikant Prabhudesai
Hi One of our employee is on leave for three months as dr sujjest her to take a full bed reast in the initial days of preganancy.
and company agreed to resume her to work after 3 months. but 3 month will be considerd as unpaid leave.
Do we need to still pay her ESI and welfare funds?
Please suggest.
Thanks,
Meera
ESI is payable on the amount of wages/ salary earned by and paid to an employee. When there is no salary, from which amount you will deduct and pay ESI? Similar is the case with welfare fund. If the entire month is marked as leave without pay, no contribution becomes payable by her or by the employer in respect of that employee.
Madhu T K
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