Please clear that if employee is out of ESI scope after increment effective from November,2012, then his ESI contribution is necessary or not during the running contribution period,( till march,2013).
Dear Akshr2011,
The Contribution period to pay the ESIC is (April to September - 1st contribution period & October to March - 2nd contribution period ), wherein for an employee if the initial contribution falling under any ESIC contribution period has less than the 15000/- he automatically becomes an ESIC insured person. In case of increments/ salary revision during contributory period above 15000/- he needs to submit his contribution till the period ends and further to that employee can be exempted from ESI.
Yes, ESI contribution is necessary during current contribution period. Explanation -
If someone is getting 14500 in the month of Nov 2012 and his salary increased by Rs.1000 w.e.f. Jan 2013 onwards, so now his salary is 15500.he will continue to be member up to March 2013 and deduction will be made on 15500 till March 2013, after that he will be exempted from ESI. Employees will be exempted from ESI after March or September if there is increase in between.
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