Is My Salary Eligible for ESI Coverage? Understanding Allowances and Limits

Hello,

I want to know if the ESI limit is 10,000 (Gross) or above 10,000 salary, ESI is not applicable. There are guidelines by ESI stating that washing allowance, transport allowance, etc., are not ESI wages. My question to all is, let's say my salary break up is as follows:

BASIC 6,701
HRA 2,000
CONVEYANCE 800
WASHING 500
______________
10,001

Would I be out of ESI coverage or not? Because as per the above statement, washing & transport are not applicable. Then, my gross comes to 8,701/-.

Hi,

The ESI ceiling limit is Rs. 10,000, hence ESI is not applicable. Employees drawing wages up to Rs. 10,000 per month (excluding overtime remuneration) are entitled to ESI benefits.

Regards,
Pushpendra

Hi,

As per the ESIC Act, any amount paid to the employee with less than a 60-day gap will attract ESIC. If the employee's gross salary is 10001, then he will not be covered under ESIC. However, the ESIC slab is going to be increased from 10000 to 15000. The effective date is yet to be notified.

Please let me know if you require any further help in this regard.

Regards,
Keshav Reddy.

Hi,

Please send which components are applicable for ESI deduction. Kindly provide the answer promptly for deducting ESI. Any other income, such as incentives or sales incentives, is not permanent income; it is based on performance and varies each month. This amount is also included in ESI wages.

Please clarify the above.

Usha

Hi,

Please send which components are applicable for ESI deduction. Kindly provide the answer promptly for deducting ESI. Any other income, such as incentives and sales incentives, is not permanent income; it is based on performance and varies every month. This amount is also included in the ESI wage.

Please clarify the above.

Usha

ESI SALARY COMPRISES:
Basic + DA + ALL OTHER ALLOWANCES (EXCEPT WASHING ALLOWANCE) + OVERTIME ALLOWANCES

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