ESI Act Coverage and Contribution Details
If an employee receives a monthly wage of exactly Rs. 15,000, they will be covered under the ESI Act, 1948, and contributions will be payable. If their wage exceeds Rs. 15,000, for example, if it is Rs. 15,001 per month, then they will not be covered by the said Act. If their wage exceeds Rs. 15,000 during any month except the base months of April and October, they will still be covered, and contributions will be payable until the end of the respective contribution period.
Regarding overtime, if the employee is covered as per the example mentioned above, contributions on overtime will also be payable, regardless of whether adding the overtime amount causes their wage to exceed Rs. 15,000 during any month.