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!!

From India
ESI is on gross without considering ESI contribution. Your first calculation is the right one.
From India, Chennai
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.
From India, Navsari

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views using the reply box below. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone.

Please Login To Add Reply →






About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2021 CiteHRô

All Material Copyright And Trademarks Posted Held By Respective Owners.
Panel Selection For Threads Are Automated - Members Notified Via CiteMailer Server