SUTARMOHAN22Hello everyone...ESI deduction is required if a person salary is crossed 21000/- in between of contribution.. example: April to October his gross salary was 18000/- and he was paid ESI on it ...but now his salary is been increased due to increment as 25000/gross..
1.whether he has to pay Esi on arrears from April to October??as it's already paid on 18000/-gross
2 if yes then I have it till next contribution period upto March ..
From India, undefined
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Shailesh Parikh_HR ProDear Mohan Sutar
For ESI contribution purpose the financial year has been divided into two halves, 1st April to 30th September and second half from 1st October to 31st March of next year.
If the wages of an employee (excluding remuneration for overtime work) exceeds the wage limit prescribed by the Central Government (Rs. 21,000/- or below) after start of contribution period, he continues to be an employee till the end of that contribution period and the contribution is to be deducted and paid on the total wages earned by him.
The contribution on enhanced wages is also payable from the month in which such increase is announced. There is NO NEED TO PAY CONTRIBUTION ON ARREARS PAID IF THE REVISION IS GIVEN WITH RETROSPECTIVE EFFECT.
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From India, Mumbai