I am really confused as to calculation of 21000 gross salary for ESIC.
Suppose, I have a CTC of Rs. 280,000, which includes PF employer share Rs. 20160 (1680 per month) and hence my gross being 259840 (21653/month). Now my understanding of deciding whether a person is covered under ESIC is, if (CTC - PF employer) < 21000/month, then the person will be eligible for ESIC.
What the other suggestion I have received is, if my CTC is Rs. 280000, PF employer is Rs. 20160 and ESIC employer share is Rs. 11782 (4.75% of gross), so my gross drops to Rs. 248052 (20671/month), now since my gross after considering employer share of ESIC is below 21000, I will have to be registered under ESIC.
Kindly help as to which method of calculation is correct. Thanks!!
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ESI is on gross without considering ESI contribution. Your first calculation is the right one.
Esic always calculet on your earning gross which is 21,000/-
So Your Employee whomes Earning gross is under 21,000/- you have to deduct esic.
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