Reg ESI - Employee Wages

Franidhar
Dear Professionals,
Please let me know on what wages ESI(Employer + Employee contribution) should be calculated.
Regards
Harsh Kumar Mehta
1. Sir, the term "wages" has been defined under section 2(22) of ESI Act, 1948. I will suggest you to please go through the said definition of wages.
2. Even if after going through the said definition if you feel any doubt, the same can be raised in this thread alongwith detail of the matter, if any.
Franidhar
Dear Sir,
Please also let me know what wages should be considered in the following instance for ESI monthly remittance -
1. An employee whose actual gross wages are Rs 12,000 /- has worked for 20 days in a month of 30 days where the gross has been changed to Rs 8,000 /- based on the number of days worked.
Now do we need to consider Rs 12,000 for ESI caluclation or Rs 8,000 /-
Please clarify.
Regards,
Harsh Kumar Mehta
1. Sir, contribution under ESI Act, 1948 is payable on the "wages" paid or payable and not on the basis of rate of salary or wages. However, wages paid on account of sanction of leaves with wages are also wages on which contribution is payable under said Act.
2. If the amount of wages in any month is only Rs.8000, then contribution, in my opinion, is required to be deducted on the said amount of wages you received.
3. In case, the employer is deducting contribution on higher side from your wages, then you can take up the matter firstly with the employer, and then in case of no response, with ESIC.
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