ESIC Contribution payment for employee who received an increment and moved out of range? - CiteHR
Dbpawar
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Dear Team, An Employee has been covered under ESIC and contribution is being paid on regular basis. On the month of November 2017 the employee receives an increment. As per the revised salary paid in the month of November the monthly gross exceeds INR 21000. The increment is effective 1st April so the arrears are paid in Mid December.
As per my understanding, ESIC contribution once started need to be continued till completion of 6 month's period. In this case, the contribution shall be paid till March 2018. April 2018 onwards, the contribution to ESIC shall be stopped.
Also since the ESIC contribution is paid, the employee will be eligible for benefits as per ESIC rules.
Request your views and suggestions in case my understanding is different from actual practice...
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Dear Deepak,
You are absolutely right. You need to continue the contribution upto March 2018. Emplyee will keep getting the benefits from ESIC untill subsequent benefit period which will end in Dec 2018.
Regards,
Mahesh Kumar
Little. correction benifst period will be from April, 2018 to sept 18
Please find below excerpt taken from ESI FAQ booklet taken from esic site which clarifies contribution and benefit periods.
13. What are the contribution periods and benefit periods?
The financial year from April to March has been divided in to two six monthly contribution
periods i.e. 1st April to 30th September and 1st October to 31st March of next year. The
relevant benefit period corresponding to each contribution period commences three
months after the end of the that contribution period i.e. Jan to June and July to December
(The
calendar year from January to December has been divided in to two six monthly
benefits periods)

Thank you all for the responses.
Request to share any of the documents, excerpts which supports the statement mentioned by me (ESIC contribution once started need to be continued till completion of 6 month's period. In this case, the contribution shall be paid till March 2018. April 2018 onwards, the contribution to ESIC shall be stopped.) in earlier post as I am not able to find the same form ESIC ACT.
Dear Deepak Pawar
the proviso to Rule 50 of ESI Rules 1960 lays down that if at any time after the commencement of the contribution period, the the wages of the employee exceeds Rs.21000/p.m, he will continue to be employee till the end of teh contribution period.Hope this will suffice.
B.Saikumar
HR & Labour Relations Advisor
Navi Mumbai
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