Is ESI Contribution Required on Salary Arrears? Seeking Clarity on Legal Requirements

Dear friends,

Could you please let me know whether ESI contribution should be on arrears or not as per the act? If so, please provide details (Act). I checked with the ESI local office Branch Manager, and she informed me that contributions should be paid on arrears as well. This is because we increased the salary from 8000 to 13000 this month, effective from 01.05.2010. Upon calculating the arrears, it amounts to around 30,000. Please clarify my doubt.

Ganesh

Dear Madhu, Further, I need one more clarification. When do we have to make the ESI payment for that salary arrears? For example, if we are going to pay the salary arrears of April 2011 in the month of June 2011, when will be the last date for payment of the arrears of ESI contribution due date?

Regards,

Clarification on ESI Contribution for Salary Arrears

I repeat that ESI is not to be contributed on the arrears of salary paid. Then why should we have a date of payment? Please follow the link given in my previous post for details.

Regards,
Madhu T.K

Dear Sir, this is a delayed post, but please help me. I want to know if we are paying arrears salary effective from April 13 in the month of May 13. Now in the month of April, we have deducted the ESI of the employee and deposited the same. Now, after the increment, his salary is above 15,000/-. Should we stop the ESI contribution, or will it continue until September 2013?

Regards,
Jugal S