ESI Contribution - Case Study

T.PRABHAKAR
Dear Friends,
can anyone help me in explaining about the half yearly contribution for the following case study?
An employee is getting a salary of Rs.9000 from April to June. If he gets an increment in the month of July in which his gross salary is crossing Rs.10,000/-, then what will be his contribution if it is so, till which period he is covered under ESI?
Please reply urgently.
Thanks,
T.PRABHAKAR.
kumaresank
Once the employee salary exceeds Rs.10K he is out of the purview of ESI Act. For the period of his contribution, employee will be benefit in "benefit period" ie., for April-Sep contribution period, the benefit period is "jan-june"
Rajeev Verma
Even after crossing the limit of Rs.10 K in the month of July, he will keeps on contributing towards the ESI deduction for that contribution period which is from April to September and he will contribute 1.75% on the full salary. He will be exempted from the ESI from October onwards.
p ramachandran
If salary of a person is Rs.9000 from April to July and he is getting a raise to Rs.10500 in August, he supposed to contribute esi contribution on entire amount of his salary till september (that is to say till the contribution period ends).From the next contribution period No ESI deduction shall be made for him since he is an excluded employee.
sagala amarnath
Dear Mr.Prabhakar,
The contribution period for ESI is from APRIL to SEP and OCTOBER to MARCH.
As per the ESI Act as in vogue, all employees whose gross salary is less than Rs.10 K are covered under ESI.
Please note that if an employee's salary gross salary increases more than Rs.10 K during the contribution period, then ESI contributions will have to be made till the end of contribution period i.e Till March or September ( as the case may be ).
Eg. If employee's gross hiked in June , then ESI contribution will have to be made till Sep. Effective from October, this will be stopped.
Hope this clarifies your issue.
With best wishes
Amarnath Sagala
ramnathmsw1976
dear Friends,
i agree with the statement given you, but my doubt is whether we hav to follow any principle to close the ESI contribution of a particular employee when his salary is hiked above then 10000/-
waiting for reponce...
regards,
ramnath
S C Verma
Dear Mr. Prabhakar,
In case the salary exceeds the ESIC wage limit during the contribution period, The ESIC Contribution shall be deducted on/upto the ceiling limit, that is, Rs. 10,000/- and not on excess amount exceeding Rs. 10,000/-. The contribution shall be payable till the end of contribution period whereafter the employee shall ceased to be covered employee.
S.C. Verma
kumaresank
friends had shared their the similar views in details.
I'm interested in seeing the provision which enables an employe whose salary exceed Rs.10K to make ESI contributions till the completion of contribution period....... HELP ME FRIENDS....
pavani2646
Respected Sir,
My query is we are having more than 5 contractors in my establishment and each of them are having not more than 20 manpwoer then as a principal employer am i take registration certificate from the Labour Office .

URGENT,,,,,,,,,,,,,,,,,,,,,,,,,,
ramnathmsw1976
Dear Friends,
As Mr. Kumaresank as expresed all are sharing thier same views. plz share in addition to that, as i hav already posted query for that particular topic...
regards
ramnath
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