ESI Contribution Confusion: Is an Employee Joining Mid-Month Eligible?

I have a little bit of confusion concerning ESI Contribution. The scenario is as follows: suppose an employee joins on April 5, and the payroll is processed on April 25. If the minimum days required to capture ESI is set to 25 days, is the employee eligible for ESI Contribution? Additionally, is the employer contribution applicable? The employee meets all other eligibility conditions.

Regards,
Sivajith

If the employee is under the provisions of ESI, then it is immaterial whether the employee is being paid 1 day's salary or 30 days of salary; the ESI contribution is payable. Secondly, if you are deducting the employee's contribution, then the employer's contribution is, by default, payable.

Regards,
Preetam Deshpande

ESI Applicability and Liability from Day One

ESI applicability and liability start from the very first day of employment if the Act is applicable to the establishment. The reason is simple: the employee may require medical insurance on the very first day of work. They could meet with an accident or face other unforeseen circumstances. ESI protects the employer against WC compensation as well as disability pension. It is in the interest of the employer to provide employee protection from day one. Otherwise, the employer will be personally liable to pay for everything in case of any mishap.

Best regards,
Sameer Paranjape
Advocate (Labour Law Consultant)
Pune
[Phone Number Removed For Privacy Reasons]

Share knowledge .... gain knowledge ....

The employee is eligible for ESI from day one. If the employee works for just one day, the ESI contribution must be remitted.

Regards,
Sudharshan