ESI Contribution - Case Study

dear friends,
what is the amount of contribution if an employee's salary comes below 10K when is non esi. shall we pay the contribution if so happens. Im taking about reduction in salaries during the time of recession. if an employee's salary is Rs.10000/- p.m and if come down to Rs.7500/-p.m what will be the amount of contribution. Please seniors reply fast.
Shahida.R

Dear Ms. Shahida,
Yes obveiosly..if their is dedtn in salary u cant enroll him/her under ESI and if the salary package is less for that particular period, then u hav 2 enroll him under ESI and wil be continued till the contribution period.
regards,
ramnath

Yes Shahida.. Well detailed by Ramnath.
Yes Pavani, you need to take the Contract Labour Registration from the Labour Office...
Regards,
Amit Seth.

Dear,
Mr.SC Verma is absolutely correct. Mr.Rajeev is also correct except this that the ESI contribution shall be up to the ceiling limit.
V.K.Gupta

Dear Pavini,
If in your establishment total No. of contract employees are more than 20 then your establishment is under obligation to take the Registration from the Labour department to keep the contract labour. And ifthe contractors are having more then 20 employees in your establishment then they have to register i.e. take licence from the labour dept, which will be issued by the dept for one year. If the contractor having less then the 20 employees then they are not obliged to take any licence.
v.k.gupta

Dear Ram,
Your query has been correctly answered sevral times over. Prabhakar has give you the solution in detail.
There is no principle to follow. Just exclude the name of the concerned employee and do not make any deductions/contributions for him/her from the next Contribution Period. In this case w.e.f. 1st Oct.
Cheers,
Vasant Nair

hi every one. my question come from t. prabhaker query. my question is esi contribution from july will be deduct from rs. 9000/- or by the raised salary. kindly solve my doubt.

Dear Friends,
Hope the person who gets a hike in the month of October and crosses 1O K, is out of ESI wef Oct itself. For such a person what will be the beneficiary period.

No procedure is there for informing about the ceiling limit crossed employee. simply not entering his name in Employees register maintaining under ESI Act. No contribution is recovered from him from the next contribution period.

Dear reya,
esi contribution is to be deducted on the total salary of him even it is crossed RS.10000, till the contribution period ends.
Contribution Period:
1st April to 30th Sept.
Benefit period
1stJan of the following year to 30th June
Contribution Period:
1st Oct to 31st March
Benefit period
1stJuly to 31st Dec of the year following