Yes, we need to deduct ESI for arrear salary, if it is not more than 10,000 gross. If its more than 10K, then till the completion of the contribution period.
Dear Even if arrear is paid at a later dates, the ESI contribution is to be deducted. The problem comes when arrear is paid and someone comes out of the purview of the Act by virtue of increase in salary from the last date of increase; he may create problems. Since he was covered under the Act and was insured therefore he can't claim that he was out of purview and no ESI contribution is to be deducted ak malhotra
hey i need to understand that what are arrears in salary and also i need to understand that what is ESI, is it a employee +employer contribution or just employer contribution and also what are the benefits for employer perspective and what are the benefits from employee perspective..
Aprreciate your early response.
Thanks,
Robin
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