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.
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!!
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.)
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 :
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”
Kindly check the 1st Paragraph of 2nd Page.
Hence check above all the links and kindly give me a satisfactory answer.
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.
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?
Madhu T K