What Happens to ESIC Benefits if Employee Salaries Increase Soon?

Hi all,

I have one doubt. Some of the employees in our company right now are eligible for ESIC as their monthly salary is less than 10,000. If I submit their declaration forms, I think I'll get their insurance numbers and Temporary Identity Card. What will be the validity for those cards if their salary increases in the future (in the next 2 or 3 months)? Please let me know because I'm so confused. 😕

Hi,

For employees who are below the ESIC limit, you will need to deduct their ESIC contribution until the end of the contribution period. For example, if in April, XYZ's salary is 9500.00, then you should deduct his/her ESIC based on Rs. 9500.00. If in July the salary increases to Rs. 11000.00, you must continue deducting the ESIC until September. Starting from October, there is no need to deduct and pay ESIC contributions for XYZ. Therefore, even if the Temporary or Permanent card is received, it can only be used until September.

I hope this clarifies your query.

Regards,
Harshad

Dear Madhavi,

Please tell me what forms are required for the registration of an employee in ESI.

Dear Sam,

You have to submit Form-1 (declaration, filled out by the employee) and a covering letter Form-3 (filled out by you) to the ESI office.