2. It is also important that the insured person who want to claim certain benefits must know as to for how much days he/she has actually contributed in ESIS since the eligibility for benefits depend on the actual contributions. Instead of raising such long queries/questions, it will be more better if the claimant insured person may contact the Branch Office Manager of ESIC to which he/she is attached alongwith his/her ESIC Identity Card to know the exact position. Branch Manager ESIC is the appropriate authority to say finally in such matters.
3. It will be more better if you may go through the system of contribution periods and benefit periods and also download necessary literature on various benefits and contributory conditions from the website of ESIC and go through the same and if still there is some issue raise the same again with complete details of contributions paid etc.
Thank you for your revert. Please note this query is not about any individual employee. This query came to me while I was reading about ESIC. As per ESIC one of the contribution period is 1st October to 31st March and the benefir period for this contribution is 1st July to 31st December. so my query is clear If a employee's first contribution to ESIC goes in March will he be able to take benefit for the entire period of 1st July to 31st December or he will have to wait till next benefit period.
In the case of accident to employee while on duty, the benefit will be available even if he has not entitled to sickness benefit. However, for the accident taken place outside the course of employment or for the accident caused to family members only medical benefits will be available.
An employee covered will have to be covered till the end of the contribution period irrespective of any increase in the salary above the wage ceiling (of Rs 21000) Therefore, if the salary is increased in May, he will be covered till Sept, 2017.
Thank you Madhu sir and Srinath sir for explaining it so simply. One query of mine was if an employee salary is 19000 till May 2017 and in the month of June its revised to 22000. Then ESIC need to be deducted till sept 2016 which I am aware of. But will this deduction from june 2017 will be on 22000 or only on 19000.Do we have any option to keep a block of 21000 in such cases.
Please answer to my below query also.
5)Suppose the gross salary of the employee is 22000 which include a monthly production bonus of 2000.This bonus is paid to employee only in the month he achieve the target. So will this component be considered to determine the ESIC eligibility of the employee.
It is to be noted that though there is a wage ceiling for coverage of an employee, there is no limit for wages for contribution. Therefore, contribution is to be paid on the total wages without putting any cap on the wages like rs 21000.
2. If the frequency of payment of incentive is more than 2 months, the same can be excluded for coverage and contribution. But in case it is payable every month it should form part of ESI qualifying salary. It is immaterial whether the person has earned it or not. If the terms of employment provide that the employee is entitled to a certain amount as incentive every month it should be part of wages even though the payment is purely based on achieving targets. But it should not be notional but actual amount paid or payable.
While referring the previous talk in cite HR I found below discussion. Just wanted to know if its true (please ignore the 15000 limit as the discussion is before the amendment):
"Washing Allowance shall be taken in to consideration for ESI Eligibility i.e. 15000 gross salary but no ESI shall be deducted on Washing Allowance.
Its not a wages under ESI act."