Query On OT/Arrear

(2 Replies, 45 Views)
Greetings sir Does overtime payment included in Esi deductions.is OT criteria for coverage of emloyee. If my salary is 12000and OT is 6000 then on which payment there will be esi deduction. & Arrear is also considered for esi deduction. suppose my salary is 10000/ and arrear paid is 6000 then my salary become 16000 of that particular month. whether deduction will be on 10000@ 1.75% or on

Dear Satish ji,
Over time payment attract ESI contribution but does not attract for ESI coverage. If gross salary excluding of OT payment is less than Rs. 15000/- in the first month of contribution period, then the employee is covered under ESI for entire contribution period and the ESI contribution is payable on gross earning including of OT payment.
As regards to ESI contribution on Arrears, there is no ESI contribution on Arrears. Many postings are available in this forum on this topic including of mine.