Re: What Is The Limit For ESI DEDUCTION MAXIMUM AMOUNT

Hi,

I want to know how much is the maximum amount we shall deduct from the ESI Act?

Thanks,
Dilip

Hi Dilip,

The ceiling amount to be covered under the ESI Act is 10,000 rupees gross per month. 1.75% of the gross amount per month is deducted from the employee's side, whereas 4.75% is deducted from the employer's side.

Therefore, the maximum deduction under the ESI Act from an employee can be 1.75% of 10,000 rupees, which equals 175 rupees only. On the employer's side, it would be 4.75% of 10,000 rupees, totaling 475 rupees only.

I hope this clarifies your query.

Regards,
Amit Seth.

Dear Friends,

You can visit www.esic.nic.in and www.epfoindia.com for more details about ESI and PF.

Regards,
Amith R.

Hi Amitmhrm,

The ceiling amount to be covered under the ESI Act is 15,000 rupees gross per month. 1.75% of the gross amount is deducted from the employee's side, while 4.75% is deducted from the employer's side.

Therefore, the maximum deduction under the ESI Act from an employee can be 1.75% of 15,000 rupees, which is 263 rupees only. From the employer's side, it would be 4.75% of 15,000 rupees, which is 713 rupees only.

I hope this clarifies your query.

Regards,
Manas Jha
9007640313

Hi Dilip,

You can deduct the ESIC amount up to INR 15,000/- of gross salary as per the mentioned wages below.

Employee contribution: 1.75%
Employer contribution: 4.75%

For example, if the gross salary is INR 10,000.00/-
Employee contribution: INR 175.00/-
Employer contribution: INR 475.00/-

Hi friends,

Please let me know about the ESI. In which area will it be effective? Where are the ESI hospitals located or for other reasons? Because in our city, ESI is not applicable.

Tush_Sharma