Handling ESI and PF Arrears Salary: Contributions, Calculations, and Compliance

Dear team,

I need help regarding ESI. Our company has provided arrears salary from January 2015 to August 2015 and also deducted PF and ESI amounts from the Total Salary. Now, how do I pay the arrears PF and ESI amounts? I believe that the ESI portal accepts salaries up to Rs. 15,000. What should I do? I need help from you. If you have any knowledge about this, kindly assist me in completing this task.

Thank you.

Dear Kselva93,

In the case of ESIC, the wages of an employee are increased from a retrospective date, resulting in crossing the wage limit prescribed. Its effect on the coverage of that employee is only after the expiry of the Contribution period during which such an increase is announced or declared. The contribution on enhanced wages is also payable from the month in which such increase is announced. There is no need to pay the contribution on the arrears for the period prior to the month of declaration/announcement/agreement.

For PF, just add the 06 basic amount for the following month and add it to the September 15 basic salary. The ECR format will automatically do the rest.