If an employee chooses to continue with ESI even after his/her salary was hiked above 21,000/- limit, what will be the employer contribution? Is it zero, 4.75% of 21,000 or 4.75% of the new salary?
From India, Kottayam

Prepare youself for senior leadership roles by discovering your unique leadership style →
Promoted: UCLA - Executive Leadership in a VUCA World (Explore Course)
There is no provision in ESI Act permitting an employee to exercise option to continue to be covered by the ESI if his wages exceed Rs.21000/-pm.However where such hike beyond Rs 21000/- occurs after the start of the contribution period, he can continue to be covered till the end of the contribution period.
B.Saikumar
HR & Labour Relations Consultant.

From India, Mumbai
Thank you Sai for your response.
From India, Kottayam
In case the hike happens in between a contribution period, do we have to deduct 1.75% / 4.75% of 21,000/- or the new gross salary?
From India, Kottayam
Yes, you have to deduct employee and employer contributions at the existing rates till the revised rates come into force. B.Saikumar HR & Labour Relations Consultant
From India, Mumbai
on gross wages only, if any body knows the sec. / rule pl. let us know. Regards, Srinivas
From India, Hyderabad

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 CiteHR.Comô

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