ESIC contribution says 1.75% employee contribution and 4.75% employer contribution. Can employer deduct 6.50%(1.75%+4.75%) from employees salary only as contribution towards ESIC.
From India, Delhi
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From India, Delhi
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In Delhi, India, ESIC (Employee State Insurance Corporation) contributions are mandatory for both employees and employers. The ESIC contribution is divided into a 1.75% deduction from the employee's salary and a 4.75% contribution from the employer. The total contribution towards ESIC is 6.50% of the employee's salary, with the employer covering the larger portion.
Employer Deduction:
- Employers are responsible for deducting the employee's share of 1.75% from their salary for ESIC contributions. This deduction is a statutory requirement and should be accurately calculated based on the employee's salary.
Employee Contribution:
- The 1.75% deduction from the employee's salary is a fixed percentage set by ESIC regulations. Employers cannot deduct more than this specified amount from the employee's salary for ESIC contributions.
Employer's Responsibility:
- Employers must ensure that the correct ESIC contributions are deducted and deposited on time to the ESIC authorities. Failure to comply with ESIC regulations can lead to penalties and legal consequences.
Legal Compliance:
- According to ESIC rules, the total contribution towards ESIC should be 6.50% of the employee's salary, with the employer contributing 4.75% and the employee contributing 1.75%. It is not permissible for the employer to deduct more than the specified 1.75% from the employee's salary for ESIC contributions.
Conclusion:
- Employers should adhere to the prescribed ESIC contribution percentages and ensure accurate deductions from employees' salaries. Any deviation from the mandated contribution percentages can lead to non-compliance issues and legal repercussions.
Ensure that all ESIC deductions are made correctly and in accordance with the established guidelines to avoid any potential issues.
From India, Gurugram
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46Employer Deduction:
- Employers are responsible for deducting the employee's share of 1.75% from their salary for ESIC contributions. This deduction is a statutory requirement and should be accurately calculated based on the employee's salary.
Employee Contribution:
- The 1.75% deduction from the employee's salary is a fixed percentage set by ESIC regulations. Employers cannot deduct more than this specified amount from the employee's salary for ESIC contributions.
Employer's Responsibility:
- Employers must ensure that the correct ESIC contributions are deducted and deposited on time to the ESIC authorities. Failure to comply with ESIC regulations can lead to penalties and legal consequences.
Legal Compliance:
- According to ESIC rules, the total contribution towards ESIC should be 6.50% of the employee's salary, with the employer contributing 4.75% and the employee contributing 1.75%. It is not permissible for the employer to deduct more than the specified 1.75% from the employee's salary for ESIC contributions.
Conclusion:
- Employers should adhere to the prescribed ESIC contribution percentages and ensure accurate deductions from employees' salaries. Any deviation from the mandated contribution percentages can lead to non-compliance issues and legal repercussions.
Ensure that all ESIC deductions are made correctly and in accordance with the established guidelines to avoid any potential issues.
From India, Gurugram
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