1. An employee whose wages exceed the ceiling limit (Rs. 15000/- at present), continues to be an employee till the end of the relevant contribution period.(Proviso to Sec. 2(9) of ESI Act.). Hence, contribution is to be paid till the end of March 2011.
2. Though there is wage ceiling for coverage of an employee, there is no ceiling in the definition wages under Sec. 2(22). "Wages means all remuneration paid or payable to an employee..." Since a person drawing above 15000/- is also an employee till the end of March 2011, all remuneration drawn by him i.e. 18,000/- is wages. Hence contribution is to be paid on the total wages eaerned by him and not to be restricted to 15,000/- as suggested by a few members.
I suggest members to give their replies only they are sure about its correctness, and if possible please quote the rule position. Wrong replies amount to only misleading others.
2. Though there is wage ceiling for coverage of an employee, there is no ceiling in the definition wages under Sec. 2(22). "Wages means all remuneration paid or payable to an employee..." Since a person drawing above 15000/- is also an employee till the end of March 2011, all remuneration drawn by him i.e. 18,000/- is wages. Hence contribution is to be paid on the total wages eaerned by him and not to be restricted to 15,000/- as suggested by a few members.
I suggest members to give their replies only they are sure about its correctness, and if possible please quote the rule position. Wrong replies amount to only misleading others.