Is Esi Mandatory On Not

Hi all,
i have recently changed my job. In my previous co. We were not deducting esi on over time. But now in my new co. We are deducting esi on over time also. I want to know what rule says. Is it mandatory to deduct esi from over time also?
Regards,
sanjeev

Hi Sanjeev
what you were doing in your earlier company was wrong, ESI contribution need to be deducted on OT payment also.
Thnaks and regards-kameswarao

yes sanjeev
overtime amount has to be deducted on total salary..but only if it is mentioned in payslip.
sathasivam
HR Manager

Yes, ESI amount should be deducted from overtime amount also. if gross salary is 13500, then ot amt is 2500, so the total esi deduction both e'ee, e'er contribution should be deduct on Rs.15,000/- only. revised ESI wage ceiling is Rs.15,000/-from 01.05.10 onwards.

Dear sanjeev,
ESI amount should be deducted from overtime amount also.
The reason why it is so is because esi is deducted onthe total earning of that person.
If earning including OT > 15000 Rs Esi applicable
if earning including OT <15000 Rs Esi not applicable
If a person /worker's total earning is > 15000 rs he will be coming under the companies scheme of sick leave where esi rules will not be considered.
For your Q's -yes OT is Taken.
total esi deduction both e'ee, e'er contribution should be deduct on Rs.15,000/- only. revised ESI wage ceiling is Rs.15,000/-from 01.05.10 onwards.
Mahesh Dspm
Hr-Officer
Binani Zinc Ltd

Dear friends
Just tell me about overtime issue... If some person get 15,000 + overtime then he is not in esi scheme. but if some conditions he will not done overtime then his gross is less than 15,000 then what have to do.

@ Devi1310 & @maheshdaspm : I have not come across any such provision which says to deduct ESI only on Rs.15,000/- if his gross salary including OT exceeds the limit of Rs.15,000/-.
I would be highly grateful to you if you can provide me details of such law / notification.
Thanks & Regards,
Anil Kulkarni.

Hi,
As per the new ceiling , ESIC is for persons <=15000. Hence, anyone whose has ESIC in CTC , and is paid OT, ESIC will be charged on the OT amount . Anyone , who is out of ESIC bracket, his /her OT amount will not attract ESIC. It's as simple as this.
Regards,
Jeene

Hi,
Salary gets deducted for late entry to office in our organisation. So if somebody salary in a particular month become less than 15k will he be under ESI

Per me, Monthly fixed component plays the role.
Any addition/deduction don't have a role, hence if the fixed component is falling under ESIC bracket, then you got to calculate on actual by end of the month regardless of addition/deletion for varieous reasons.
KK