ESI - in the middle of the contribution period his wages crossing the ceiling limit?

Hi, Can anybody clear my doubt, if an employee who is covered under the ESI Act, earning gross wages Rs.7500/- and in the middle of the contribution period his wages crossing the ceiling limit (i.e. his wages increases to Rs.10500/-). in this case, should I deduct the ESI contribution in respect of the employee for the remaining period of contribution. If it is needed to deduct the contribution, in which amount do I have to deduct. Please give your opinion.

Hi,
Contribution has to be paid till the end of six months period. say september or March as applicable.
regards,
AM

Hi,
Thanks for your response. Still I am not clear about this, Whether we should deduct the contibution for his full wages or ceiling wages (i.e Rs.10500/- or 7500/-)

Hi,
you have to deduct the ESI contribution for the Full contribution period.
You need to paythe contribution on the increased wage. i.e, Rs.10,500.00 in this case.
Hope, its clear
Arasu

Hi
well if you dont have the notification from them than go n take only than u will do it from 10000/- not from 10500.....without gazzat u cannot deduct from 10000, so u have to continue the deduction 7500/-
the limit is 10000/-
for more conformation ask it from any officer from ESI office..
Well in my org we are still follow'n old one coz gazzat has not been received.
Regards
Divya

Hi
as per the new amendment in the ESIC Act, the existing wage-limit for coverage under the Act, is Rs.10,000/- per month (with effect from 1.10.2006). So, if salary or, i should say wages of somebody are more than 10000/- Rs. he/she is no more covered under this Act and thus no amount needs to be deducted from his salary from that month on.
Regards
Satyam

As Far as I know the day his salary ref even 10001 he is out of the bracket so you could stop the deduction from that month onwards

hi satyam
yes
if amt exceed 10000/- than no deduction but againe i'll
ask the same que...did u get the letter of ammendment from ESI office or not ?...dont start this till u get gazzat ok...
Regards
Divya

Hi,
Actually the Government has increased the limit of ESI from 7500 to 10000. Before last month, the limit was 7500 & now it is 10000. If he is getting salary more than 7500 before & now getting 10500. In both the situation ESI will be deducted.

ESI is deducted @1.75% of gross
Regards
Parveen

Hi ,
As far as my knowledge goes once an employee's salary exceeds the ESI limit thats 10000 /- (Acc. the new amendment app from Oct 2006) the deduction is discontinued . No deduction whatsoever will be made on new or old salary .
Akshada