Salary Increase to 12000: Is ESIC Still Applicable for Me?

Hi,

I presented my salary as 10000 up to December 08. Now, starting from January 1st, it is 12000. If it is below 10000, ESIC is applicable. Now that my salary is 12000, is ESIC still applicable or not?

Thank you.

From the next contribution period, which starts on 1st April 2009 onwards, you will be out of coverage provided no notification to increase the present ceiling of Rs 10,000 is issued by the ESIC. Till the end of the present contribution period (from 1-10-08 to 31-03-09), you have to contribute to ESI.

Regards,
Madhu.T.K

[Quote: Srinivasu Nallapati; 597787]

Hi,

Presently, my salary is 10000 up to December 08. From January 1st onwards, it will be 12000. If the salary is below 10000, ESI is applicable. Since my salary is now 12000, ESI is not applicable. However, the company will deduct ESI for this contribution period, and after March, it will not be deducted.

Could you provide a breakdown of your salary to calculate the qualifying amount for ESI? Some of the allowances are not considered when calculating the qualifying amount for ESI.

Regards,
icon10

Dear,

As per the ESIC Act, gross salary up to 10,000 is covered under ESIC. However, when your gross salary is 12,000 or above, no deduction of ESIC amount is made from your salary.

Jayesh Panchal HR Executive Lemon Tree Hotel

Yes, ESI is applicable until the half-yearly return period is over, i.e., March '09. After that, it would not be applicable. Also, please note that ESI will be calculated on ₹12,000/- and not on ₹10,000/-.

Thanks,
Aditya