I want some help in arriving at the correct figure for the employer's contribution for ESI. To give an example, an employee has a salary of 8000 per month in October (beginning of the contribution period), and thus the employer's contribution is 4.75% of 8000, which equals 380 rupees. Now, the salary increases to 12000 per month starting from January, and thus the employee goes outside the ambit of ESIC. However, the employee will have to contribute until the end of the contribution period, i.e., till March.
I want to know, from January to March, what will be the amount to be paid as the employer's ESI contribution. Is it 4.75% of 12000 = 570 or 4.75% of 10000 = 475 rupees (10000 being the maximum salary for which ESI is applicable)?
A.V. Veerkar
I want to know, from January to March, what will be the amount to be paid as the employer's ESI contribution. Is it 4.75% of 12000 = 570 or 4.75% of 10000 = 475 rupees (10000 being the maximum salary for which ESI is applicable)?
A.V. Veerkar