ESIC Contributions: Do We Deduct for Salaries Over 15,000 in June?

Kindly send me the ESIC Challan for the monthly contribution. If any worker's salary is increased to more than 15,000 in the month of June, should we still need to deduct the ESIC from his salary? Please advise.

Yes, deduct up to 30th September - Contribution period 1st April to 30th September. 1st October to 31st March Contribution period. If the salary exceeds the limit during this period, adjustments should be made accordingly.

Generating ESIC Challan Online

ESIC Challan can be generated online now. Please visit ESIC.

ESIC Deduction Period

You need to deduct ESIC until September, i.e., till the contribution period of April to September. In October, the worker would be exempted from ESIC.

I hope this resolves your queries.

ESI Contribution When Wage Exceeds Rs 15,000/- p.m

In the instant case, the employee's wages did not exceed Rs. 15,000/- p.m. on the 1st of April, which is the beginning of the contribution period (The contribution period is between 1st April and 30th September). It means he is an employee at the beginning of the contribution period, but his wages exceeded Rs. 15,000/- p.m. from June. This means that though he is an employee under the Act at the beginning of the contribution period, he ceased to be an employee from June within the meaning of the above section.

The question is whether the said employee ceased to be an employee within the meaning of Sec. 2 (9) from June onwards and if the need to pay his contribution can be dispensed with. The answer to this puzzling question lies in the Proviso to Sec. 2(9). It says that an employee continues to remain as an 'employee' if his wages were within the limit at the beginning of the contribution period, even though his wages exceed the ceiling limit (Rs. 15,000/-) at any time after the beginning of the contribution period. Thus, in the instant case, the employee is eligible for disablement benefit based on the explanation.

In this connection, please refer to ESI Corporation v. Doddaiah & Others (Karn H.C) 2002 I LLJ 979. In this case, an employee was held not eligible for medical benefits under the Act since his wages were raised beyond the then wage limit of Rs. 1,600/- p.m. (the then wage limit) on the first day of April (i.e., the beginning of the contribution period).

Regards,
B.Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt Ltd.
Mumbai

Yes, you cannot stop deductions during the contribution period, i.e., from April to September and October to March, even if the employee exceeds the wage ceiling of Rs. 15,000 per month.

Subject: Continuing ESIC Benefits with Salary Over Rs 15,000

My salary exceeds Rs 15,000/- per month. I want to continue to avail of the ESIC benefits or any cash contribution provisions in ESIC. Please confirm.

Thank you.

I want to ask one thing: if ESI is deducted after an increment in salary, on which salary will it be deducted? On the current salary or the previous one?

I have the same query: "If ESIC is deducted after an increment in salary, then on which salary will it be deducted, on the current salary, or the previous one?"