ESI Implementation Within An Organisation

babita.dhn
Dear seniors,
As I am working in a small organisation, having 25 employees in our payroll. I am having the query regarding esi applicability within our organisation, near about 12 persons are having their ctc less than equal to 15000/- per month. so i wanted to know that is it applicable to our organisation or not ? And if a person is having 10k as their ctc so what percentage of deduction will be made from his salary, 1.75 % (only his contribution towards esi) or 6.5 % ( i.e.total contribution towards esi). please give me your valuable suggestion, and oblige me.
Waiting for your quick response.
Thanks & Regards,
Babita
jeevarathnam
Hi Babitha
For your organisation ESI is aplicable. You should enroll with ESI.
Contribution of ESI is on gross pay and not on CTC.
Employees who are getting gross pay lesser than or 15000/- of gross is applicable for ESI deductions
Employee has to contribute 1.75% on gross & Employer has to contribute 4.75% on gross
babita.dhn
Thank you sir,
But wanted to clarify one more thing, as our employer has decided the ctc of an employee is 15K, giving him 13k monthly, and rest of the amount i.e.2k accumulated monthly and paid annually, and if he will implement ESI scheme now, then how he will bifurcate it, is he liable to take whole contribution from employee's ctc, i.e. from 15k itself, or he should make his own contribution apart from 15k ?
Waiting for your quick response.
Thanks & Regards,
Babita.
jeevarathnam
Hi Babita
In that case I hope your pay slip should be as Gross pay of 13000/- (-ER contribution of PF & ESI) Rs. 2000 X12 = 24000 you can pay as incentive for employee at end of the year.
In that case ESI is applicable for that particular employee also.
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