Esic - Due to Incentives, Travelling allowance, Over time Allowance my Salary goes above Rs.15000 Mark

U R Patil
Sir, I know that Employee State insurance Corporation Cutting is 6.50% of Gross Salary (1.75% - Employee and 4.75%-Employer upto Rs.15000).
and According to CTC , ESIC cutting is 6.50% from Employee only.
Now my Gross Salary is Rs.14000 Per Month. Due to Incentives, Travelling allowance, Over time Allowance my Salary goes above Rs.15000 Mark i.e Rs.20000 In that month. So how much should be ESIC Cutting in that month????
Harshil Patel
Allowance are not a part for ESIC deduction, but overtime wages are deductable part for ESIC, your gross salary plus Overtime wages , total of this is stands for ESIC deduction at rate of 1.75% from your salary.
arnab.dasgupta1983
Dear Mr.Patil,
Altough, the ceiling of ESIC deduction is capped at Rs.15000/Month Gross however earning as OT & incentives shall be added for determination of earned gross for the month,in case the fixed gross is upto Rs.15000/Month.
However,reimbursement of traveling expenses is not be clubbed on the fixed gross as the ESIC act itself exempts "Conveyance" from gross salary.
Sharmila Das
Dear Mr. U R Patil,
ESI is an applicable statutory compliance where the induvidual is applicable whose salary is lesser or equal to 15000 gross salary. In case if any allowances earned will not effect the ESI payable. Your ESI will effect at 1.75% and the employers by 4.75% irrespective to the wages/ allowances paid. Here the 4.75% is not contributed from the employees salary but employer remitts its share to the ESIC account.
MahalakshmiShankaraNarayanan
Dear Mr.Patil,
For the Gross Crossing 15K , the employer has also no need to pay the contributions. The Employee & Employer both can stop it.
Dear Senoirs,
Suggest me whether its right or not
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