Is ESI Contribution Required for a Director Earning Rs. 10,000 Monthly?

Dear All,

Please let me know whether the ESI contribution is payable on a Director's salary if he is earning up to Rs. 10,000.00 per month.

If the firm registers under the Shops and Establishments Act, then all employees, including the managing director who is involved in the monthly payroll, are covered under ESIC. (If the gross salary is < 10,100, then this will be applicable.)

Hi all,

The ESIC is applicable to employees who receive wages of 10,000 or less on their gross salary (excluding washing allowance).

Gowri
09848936395

If an employee, including a director, is receiving gross salary/wages less than or equal to Rs. 100,000, then he is liable for ESIC contribution; otherwise, not.

As per the ESIC Act, the ESIC salary limit is up to 10,000.00. The ESIC contribution will be attracted on wages/salary up to 10,000.00 as per the ESIC Act, irrespective of any designation shown in payroll or in accounts book. ESIC will also apply if director's remuneration is paid up to 10,000.00 under the ESIC Act.

If an employee's monthly gross salary is less than Rs. 10,000/-, ESI has to be deducted.

Please tell me what the wage scale is for ESI and PF (i.e., at what stage of salary does it become applicable).