ESI - Whether It Is Calculated On Basic Or Gross?

Hello Anjana
The following monthly returns tobe filed in case of P.F
1)Return of employeesqualified to be memebers of the P.F --- Form-5 - to be filed within 15 days of teh close of evry month.
2)Declaration Form ---- Form-2 - to be filed within 15 days of the close of evry month.
3)Return of employees leaving ----- Form 10 - to be filed within 15 days of the close of every month
4) Return of Contributio cards ------Form-6 to be filed withinone monthof expiry of the currency period
5)Statement of contributions ------Form12A to be filed within 25 days of the closure of the month.
Due to the introduction of on line processing, some of the returns are generated by the system and thus their physical filing is not necessary.Pleas verify this with P.F Dept.
B.Saikumar
HR & Labour Law advisor
Mumbai

Dear Sriend.
After the introduction of E-SEWA by the PF Department we need not to submitForm 5, 10, 6-A, 3-A etc.
Only thing is you have to submit the Form No. 2 if any new employee joins the organiation.
G.K.Manjunath
Sr. Manager-HR

Sai can u tell me what are the ESI monthly return forms are submitted at the end of every month by each industries

Anjana
The following returns are to be filed;
1)Return of declarations -- Form-3 - within 10days of furnishing the particulars of delaration by the employees.
2)Return of contributions --- Form -- 5 - within 42 days of the termination of contribution period
3) statement of advance payment of contribution - - 5A -- six monthly.
B.Saikumar
HR & labour Law Advisor
Mumbai

Dear Sir,
Kindly help me to clarify;
1. Over Time Amount is included in Gross Pay for ESIC calculations?
2. Over Time is a variable amount which may go beyond the ESIC wage limit 15 k; how do we calculate ESIC incase an employee's Gross is more than 15 k for a particular month?

Dear Amane,
Overtime should not be taken for working out the ESI ceilin of Rs. 15000/- but contribution is to be paid on overtime also. Washing allowance is also to be excluded from calculating the contribution.
Hence, OT should not be taken for working out the gross salary. It should be excluded.
When the gross salary is Rs. 15000 and the OT is Rs. 3500/- you have to pay the contribution on the total amount of Rs. 18500/-. Hope this clarifies both the questions/doubts
G.K.Manjunath,
Sr. Manager-HR

Dear Sir,
Thank you for your reply.
Our PF consultant has put certain employees out of coverage for ESI as their Gross wages was more than 15 k, including their OT amount.
Kindly advise a solution is such a case.
Thank you in advance.

Dear Amane
According to ESI ACT Section(2) Ss(22) over time is coming under the meaning of wages because due to emerging of work employee works for the employer so contribution is payable on the overtime allowance. However, overtime allowances will be considered as wage for the purpose of charging the contribution only and will not be considered for the purpose of the coverage of the employee under the Scheme.

Dear Sai,
plz tell me in details about esi monthly quarterly returns because i'm working in a mining industries where esi is not applicable so i'm quite ignorant.

Anjana

What I understand is that though the ESI Act is not applicable to mines, you are interetsed to know about the monthly returns. I have already given you in my earlier post the list of returns which are as under..

1)Challans -Every month the employer ha sto remit his and employees contributions within 21 days of teh close of the month throgh state bank of India.

2)Return of declarations in Form-3 -Every employer shall obtain adeclaration Form in form-1 from every employee on his joining which contains his particulars along with his photo an dthat of family and shall send all these declaration forms in teh form of reuturn in Form-3 within 10 days of receipt of the same.

3)Return-5 -After remitting contributions, every employer shall send return of contributions to ESIC office in form-5 enclosing copies of challans during the contribution period within 42 days of the closure of the contribution perid .Contribution periods for this purpose are six monthly I.e 1st april to 30th sepetemebr;&1st oct.to 31st March.

The return 5A is applicable only when employer opts to pay the contributions in advance.

B.Saikumar

HR & Labour Law advisor

Mumbai.