ESI Contribution - Employee Contributions [Thread 303218]

Dear Seniors,
If the employee's (cocered under ESI) salary increases above 15000 in December, then Is it required to contribute to ESI for rest 3 months i.e. jan, feb, mar?
Regards
Ravina

Dear Ravina,
Yes you need to continue with ESI contribution till March as the second contribution period is October to March.
M.V.KANNAN

Dear Ravina,
The two contribution periods are April to September and October to March every year. Any employee who is covered under the ESI act and moves out of ESI owing to enhancement of wages then the employer has to continue to contribute ESI till the end of the respective contribution period.
M.V.KANNAN

absolutely right...
ESI contribution if paid in a contribution period, even though the salary goes above the limit, contribution has to be paid

Dear Ravina As i know there is no liability for contributing for last three maonths you can carryon the ESI Contribution as above.

In case the salary increases in Dec'10 then there is no need to do the same. Starting from Jan'11 onwards.

Hi Ravina,
Its right !
If the employee's (covered under ESI) salary increases above 15000 in December, then it is required to contribute to ESI for rest 3 months i.e. jan, feb, mar.
Regards
Madhu Mohan
Bangalore

IF the employee salary increases above 6500 in December , then is is there any rule for like the above ESIC rule

Thank you all..
Seniors, I want to gain complete knowledge (theoratical and practical) of ESI, PF, Bonus, Gratuity i.e. complete payroll processing. Could you please guide me over the right source from where I can get the complete knowledge regarding the same.
Thank you once again!!
Regards
Ravina

Hi,
I am little confused with ESI deduction please help me out.
If an employee draws below Rs.15000/- gross per month ESI will be deducted. In a month if an employee has been paid bonus or leave encashment or arrear salary or production incentive or welfare benefit and exceeds the limit of gross 15000/- in this case ESI has to be deducted or not. If yes from which amount to be considered to deduct ESI cotribution. If not why.
In my understanding, if the limit exceeds 15000 also esi has to be deducted from the gross salary.
Bonus payment and welfare benefit are exempted from ESI contribution( ESI will be deducted from gross excluding bonus )and other payments will attarct ESI contribution.
Kindly give clear advice.