My Staff went through an accident and he is on leave and esic will be paying the salary to him so do i have to pay the monthly contribution in esic and epfo.
10th January 2019 From India, Karaikudi
ESI and EPF are contributions from the salary paid or payable by the employer. When an employee is on ESI leave you are not paying any salary. That means the employee receives zero amount as salary during this period. Salary being zero, how can you pay contribution? Contribution is a particular percentage (12% or 1.75% or 4.75%, as the case may be) of SALARY.....
10th January 2019 From India, Kannur
Dear Sir,
Thank you Sir for your reply,so for esic monthly contibution file zero for working days and monthly wage and code is 1.for pf wages also zero.
Is it right sir.???
10th January 2019 From India, Karaikudi
Why?Do you doubt? Just apply this theory, when he is on leave without pay for the entire month, he will not be paid salary or the salary will be ZERO. When contribution is payable at the rate of 12% of the salary paid, the contribution is equal to zero or 0 X 12%= 0.
An employee on ESI leave will not be paid salary from the company and hence the salary will be zero. It is immaterial whether he gets sickness or accident benefit from the ESI Corporation. For contribution the payment should be made by the employer.
10th January 2019 From India, Kannur
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