Dear Mr. Sudhir!
You are under the wrong impression.
According to the proviso to Sec. 2(9) of the ESI Act,if the wages of an employee crosses the wage ceiling limit, in the middle of any contribution period, he continues to be an employee till the end of that contribution period, and therefore contribution is to be paid on the total wages till the end of that contribution period.
By virtue of the contributions paid in that contribution period, he is eligible to both Medical Benefit and cash benefits (except employment injury benefit) till the end of the corresponding benefit period.
If I am wrong, kindly correct me.
K.V.Ramana Murty, Deputy Director(Retired), ESIC, Hyderabad.
You are under the wrong impression.
According to the proviso to Sec. 2(9) of the ESI Act,if the wages of an employee crosses the wage ceiling limit, in the middle of any contribution period, he continues to be an employee till the end of that contribution period, and therefore contribution is to be paid on the total wages till the end of that contribution period.
By virtue of the contributions paid in that contribution period, he is eligible to both Medical Benefit and cash benefits (except employment injury benefit) till the end of the corresponding benefit period.
If I am wrong, kindly correct me.
K.V.Ramana Murty, Deputy Director(Retired), ESIC, Hyderabad.