Employee Salary Increase: How to Handle ESIC Exemption and Contribution Changes?

Dear All,

One of the employees whose gross salary is under 15000, but at the time of the increment in the month of July, his gross salary is over 15000. In this situation, he is exempted from ESIC. So, effective from July 15, can we exclude him from ESIC, and how do we go about excluding his contribution?

Dear Manoj,

As you have given an increment in the month of July, you have to pay the ESIC contribution until the contributory period ends, i.e., September (irrespective of his monthly salary, which is above 15000). The said employee will be exempted from ESIC from October onwards.

Please note that the ESIC contributory period is from April to September and October to March every year.

Thanks & Regards,
Dinesh