Is ESI contribution calculated on overtime wages under The ESI Act, 1948?

Respected All,
Is ESI contribution calculated on overtime wages under The ESI Act, 1948?
Regards,
Pratul L.

When ESI contribution of employees is calculated, the Over time for the month should be included even if the gross salary exceeds Rs.15000/- p.m.

For the purpose of coverage overtime wages is not taken into account whereas for calculating contribution payable by a covered employee, overtime wages will be considered as wages earned.
Regards,
Madhu.T.K

hi,
i have never read or heard about ESI calculation on the overtime wage. I personally feel we dont consider O.T wages under ESI. Because, over time payment is consider "wage" not "salary".
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Vishwanath

Hi !!
As Madhu said, to find out ESI eligiblity of an employee OT will not be considered. But for paying the contribution OT will be considered and amount will be paid on wages + OT.
regards
ravindra

If an employee is getting less than Rs 15000 a month, he will be under ESI even if monthly wages exceeds after including OT earning. But when ESI contribution is paid for the employee it will be calculated on whole earning (wages+OT)
regards

ESI on overtime amount should be deducted as employee is to be covered under insurance cover during his/her extra hours duty. So all employees elligible under ESI act, if do overtime then ESI should be deducted from overtime amount. If an employee get injured during his/her extra duty hours then he/she can get benefit of employment injury. But overtime is not covered under term of 'wages' under ESIC Act (Bharat Commerece and Industries Ltd Vs Regional Director, ESIC,(2005) LLJ482 (MP). Therefore overtime should not taken as wages for checking elligibility of employee for ESI.
Regards,
Anuj

Over time including in ESI,
suppose employee is geeting Fix gross salary 20000 and for any respective month employee get 4000 OT
so for that month employee get 024000 salary (20000 fixed gross salary +4000 over time)
if ESI deducted then on which amount 21000 or 24000?

1. Sir, contribution under ESI Act, 1948 is to be deducted on total wages of Rs. 24,000/-, which also include Over Time as per case mentioned by you as above.
2. If the person is covered as employee, the amount of Overtime is to be essentially considered for compliance but on adding OT amount, the employee cannot be declared as uncovered. Please see section 2(9) of said Act.

Dear All,
as per Sec.2(22) of the ESI Act Overtime is a part of Wage and overtime wages is not a regular earn wage. so please do not confuse and deduct Esic from there and deposit to Esic without hesitation.
but you are confuse that if gross wages become more than applicability than what you will do? so please do not be confuse. once a employee covered under esic and once his contribution start to contributed to esic than you can not discard his name from esic before completion of his contribution period (April to Sep and Oct to March).
Thanks & Regards
Ashish Shaw
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