Salary Revision and ESI Coverage: Can Employer Contributions Be Added to Salary?

praveendvdg
Hi, can anyone help me with the issue below? One of our employees received a salary revision based on his current CTC from July 12 onwards. His earlier salary was Rs. 14,500/- (covered under ESI) and was revised to Rs. 16,000/- (covered under ESI till September 30). Starting from October, he will not be covered under ESI as he will be covered by some employer's insurance.

Question on ESI Contribution Adjustment

My question is, "As the employee contribution of ESI will be deducted from the employee's take-home pay, can we add the employer's contribution of ESI to the employee's salary?"

Regards,
Praveen Devadiga
ggm
Since it is a CTC concept, the ESI employer contribution would be part of his CTC of Rs 16,000/-, I guess. If this is the case, you can add the same to the other allowance part and pay. But make sure his Gross salary remains above Rs 15,000/- to avoid ESI deduction.

Thanks & Regards,
Guru
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