Salary Increase and ESI Contributions: How Are Arrears Handled in May?

If employees' salaries increase from April 1, 2013, by more than 15k, but this amount is reflected in the May '13 salary with arrears, will ESI contributions be paid in the May salary or not? This is because in April '13, ESI contributions were already paid due to the salary being less than 15k.

If you have any circular on this, please inform us.

Regards,
Mayur

As per the ESIC Act, the contribution once deducted will be continuously contributed for the next 6 months. Therefore, we need to deduct it up to September 13.

Thank you.

Regards.

At the beginning of the contribution period (i.e., April/October), if the salary is less than 15k, ESI should be contributed until the end of the contribution period. Even if the salary increases above 15k during the contribution period, the contribution should continue until the end of the period.

Regards,
V. Subbarao