ESI on Minimum Wage Arrears: How Do You Handle Deductions and Challans?

hrmonica
Do we deduct ESI on minimum wages arrears? How do we prepare the challan, or do we pay the same as omitted wages?
jeevarathnam
Hi,

ESI is calculated on the gross salary only, so minimum wages are not considered. If you are paying arrears for only a particular month, you can take an exemption on the arrears and shall contribute for the rest of the amount.
Harsh Kumar Mehta
Dear member,

The question of whether ESI contributions are payable on arrears of wages has been discussed many times by experts and seniors on this esteemed site. One such thread is mentioned for your information at the following link: https://www.citehr.com/370852-esi-co...nload-pg2.html

I hope you will search for the topics discussed earlier on this site and raise the issue again if you find it suitable.

Thank you.
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