HELP:Is It Mandatory To Pay ESI Contributions Every Month???

swastik73
Dear Members,
Is it mandatory to pay ESI Contributions of an employee if the Gross Salary crosses the specified limit.
Let me elucidate:
An employee crosses the stipulated Limit (now Rs. 10,000) in February, April, June,August and October for rest of the year her salary is below Rs. 10,000, is it mandatory to pay ESI contributions for February, June and october??
Kinly give inputs.
Regards,
SC
obillaneni
Hi,

There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under.

Contribution period Corresponding Cash Benefit period

1st April to 30th Sept. 1st January of the following year to 30th June.

1st Oct. to 31st March 1st July to 31st December of the year following

If any employee crosses the stipulated amount i.e.Rs.10, 000 gross in the month of 1st april or 1st october it is not mandatory to pay the ESI.

If any employee salary crosses the stipulated amount i.e. 10, 000 gross in between the contribution period(i.e. may, june,july,aug,sep or november, december, january, february, march), it is mandatory to pay the esi till the end of that particular contribution period.

Example

Employee gross is 7500 in the month of April.

his gross has been increased to 12000 in the month of june.from june onwards it is mandatory to pay the ES on the revised gross till the end of September(i.ae end of contribution period).from october onwards it is not mandatory.

Regards

SS
R Devarajan
hi
definitely ESI is a mandatory scheme. it is a social security scheme from the government of india. regarding contribution if an employees salary increases in between the contribution period, then
ESI have to be paid, till the end of that contribution period. at labour level of workers ESI is most important to them for availing medical treatment, benefits etc.,. also the management will be relieved from the resposibility of giving him hospitalisation during prolonged illness of an employee, the management can tell the employee to get treated from ESI. more over the ESI will pay the accident benefit, sickness based on the employee salary per day. management need h\not have to pay their salary during their hospitalisation period. hence ESI contribution is mandatory and useful contribution for the company.
regards
R Devarajan
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