ESI Deduction on Overtime Wages: How Does It Affect Your Paycheck?

ESI Deduction on Overtime Wages

Is there any deduction on overtime wages according to the rules in ESI deduction, or is it only on the basic salary? If the salary is less than Rs. 10,000/- or there are no more limits on salary under a Partnership Firm, please tell us the actual percentage of deduction from the employee and from the employer.

OT is also included for ESI deductions. The percentage is 1.75% for the employee and 4.75% for the employer if the employee draws less than Rs 15,000 as salary. In that case, the contribution of the employee is also deducted from the employee's salary.

Basima, LabourNET-Kerala & Karnataka [Labour Net](http://www.labournetlc.com)