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
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.
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
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