Confused About ESI Contributions? Help Needed on Wage Limits and Coverage Transfers

Dear All,

I have doubts regarding ESIC. Can anyone clarify the following questions for me?

1) Do we need to contribute to ESI deductions for employees whose ESI wages exceed 10,000/- at any time after the beginning of the ESIC Contribution period?

2) Do we need to contribute to ESI deductions for employees who have transferred from an ESI coverage area to an ESI non-coverage area at any time after the beginning of the ESI contribution period?

Thank you.

If the wages exceed Rs. 10,000 after the contribution period has commenced, you have to deduct and contribute ESI until that contribution period is over.

In respect of an employee transferred to a non-implemented area, no contribution is payable.

Regards,
Madhu.T.K

Dear all,

As per my point of view, deduction of ESI contribution must be stopped when the wages of an employee increase more than 10,000/- in a month. They can be placed under a mediclaim policy or accident policy.

In this case, ESI for employees must be stopped immediately, and employees can be given civil hospital benefits, with bills reimbursed by the employer.

Regards,
PS Toor

Query on Mediclaim Policy for Employees Earning Below Rs 15,000

Can we cover employees drawing less than Rs 15,000 under a mediclaim policy instead of ESI?

Regards,
Pradeep

Update on ESI Salary Ceiling

The post is old, and by the time the ESI salary ceiling has been increased to Rs. 15,000. Therefore, please read Rs. 15,000 wherever Rs. 10,000 is written.

Let me say that in case an employee's salary becomes more than Rs. 15,000 in between a contribution period, for example, in May, he should continue to contribute till the contribution period ends, i.e., till September. That means when his salary increases beyond Rs. 15,000, we cannot stop contributions immediately.

Regards,
Madhu.T.K