Is Our Employee Eligible for ESIC Maternity Benefits with a Salary Increase?

Can anyone help me out in the following situation?

Our female employee wants to take maternity leave from 19.01.2009 to 19.04.2009 for 3 months. Her current gross salary is 8250/-, but in the month of January 2009, we are giving an increment, and her final gross is coming up to 10,500 /-.

Can you tell me if she is eligible for getting maternity benefits from the ESIC office in the above-mentioned situation?

Because the benefit and contribution period is from October to March, we cannot deduct her ESIC contribution from April 09 onwards. Her maternity leave will end on 19.04.2009.

Please give me your suggestion.

She is not eligible for ESI benefits. The reason is that employees earning above Rs. 10,000 are not eligible for ESI.

Dear Supriya,

This employee will be eligible for maternity benefits from ESI if she satisfies the following conditions:

1. She has contributed towards ESI for 9 months before her date of delivery.
2. She has contributed towards ESI in the previous contribution period just before her date of delivery, i.e., she has to contribute during April - Sep 08.

Hope my advice helps you in this regard.

Regards,
Arun

Hi,

Even if, due to an increment, she gets out of the coverage of ESI, you need to deduct ESI on the revised salary till the contribution period ends, i.e., March 2009. With regards to her eligibility, she is entitled to the benefit as she has already contributed for the previous period.

Thanks,
Sunil

Hi,

As per the ESIC Act, the employee is eligible for claiming the ESIC benefit. Since you have increased the salary of the employee, ESIC deductions must be deducted for the whole contribution period as the rule states. Therefore, your employee is eligible for the Maternity Benefit.

Regards,
Vinay A

Dear Sunit and Vijay,

Both of you are correct. She will receive all benefits from ESI, and after increasing her salary, you have to deduct her ESI until March 2009. She will continue to receive all benefits until September 2009.

Thank you.
J.S. Malik

Dear Supriya,

With reference to your question, I would like to tell you that there is a difference between the contribution period and benefit period.

Benefit period - (1st) 01st January to 30th June & (2nd) 01st July to 31st December

Contribution period - (1st) 01st April to 30th September & (2nd) 01st October to 31st March

In the case mentioned, firstly her contribution up to 31st March will be deducted from her salary along with the employer's share of contribution, and the same will be submitted to the concerned authorities.

In such a case, she is entitled to take benefits under ESIC and will be eligible to take Maternity Leaves.

Suppose she was not entitled under ESIC, even though she is eligible to take Maternity Leaves under the Maternity Act if she had completed 80 days of service with the current employer (refer Maternity Act).

Hence, it doesn't make any difference whether her salary goes up beyond 10K or not.

Conclusion: She is eligible under ESIC to take maternity benefits and entitled to take leaves under the Maternity Act.

Hope the above clarification works for you.

Regards,
Deepak Bhandari

Once an employee is covered under ESI for the contribution period, i.e., from Oct 08 to Mar 09, she will remain covered until Mar 09 irrespective of any salary raise during the contribution period. The contribution period is followed by a benefit period, i.e., in this case, from April 09 to Sept 09. Therefore, she is eligible for maternity benefits provided under the ESI Act.

Ravindra Watve

Hi,

She is eligible to receive ESIC benefits until 31st March. The remaining one month's benefit depends on the employer because her increment in the month of April results in her losing the benefit for only one month. Therefore, she should be given the benefit until 31st March.

Aparna is right.

The eligibility of ESIC benefits will be up to 31st March '09 as per the contribution period, and benefits from 1st April to 19th April will depend on the employers. If 100% benefits are to be availed from ESIC, then her contribution period may be extended up to September '09, which is a direct loss to both the employee and employer.

Regards,

Sivadasan

As per ESIC calendar, from 1st April to 31st September and from 1st October to 31st March, if an employee falls under ESIC, the ESIC contribution needs to be deducted on INR 8500, not on INR 10500. You have to contribute up to March 2009. You can stop the contribution after March 2009, and she will receive benefits as per ESIC policy.

Dear Prasad,

As per the ESIC calendar, from 1st April to 31st September and from 1st October to 31st March, if an employee falls under ESIC, the ESIC contribution needs to be deducted based on ₹8500, not ₹10500. You are required to contribute up to March 2009. You can discontinue the contribution after March 2009, and she will receive benefits as per the ESIC policy.

It's essential to deduct a maximum of ₹10000 until the end of the contribution period.

Regards,
Ramnath