Hi, I have a doubt about ESI calculation. My employee's salary is 16,000 per month for 30 working days. However, last month he was absent for 4 days, resulting in his salary being reduced to 14,000. In this case, will he still be eligible for ESI?
No, he/she won't become an ESI member because the employee's gross salary is 16,000. After deducting the leave, it may come down below 15,000. In this case, you won't consider them as eligible for ESI.
Sir, the words used in section 2(22) of the ESI Act, 1948 are "all remunerations paid or payable". Therefore, if the wages payable exceed the coverable limit, then in my opinion, the employee will not be coverable under the said Act (even if by virtue of his absence without wages for any number of days, he is paid wages less than the said coverable limit).
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