Esi Deduction If Gross Salary Exceed 15000

deveshch
Hi All members,
One of our employee gross salary
was below 15000/- therefore i have made
His ESI contribution in aril 2016 but in may
his expected gross salary is exceed 15000/-
Pls tell me will ESI be deducted till oct. 2016 even if gross salary is exceed 15000/-
Best Regard
Karan jaoker
Harsh Kumar Mehta
1. Sir, yes the said employee will definitely be coverable till September, 2016 (closing month of Contribution period) because he was covered or coverable in the first base month of April, 2016. The contribution will be payable on total wages as defined under ESI Act, 1948 even though during the period from May to September, 2016 his wages will be exceeding to Rs.15000/-.
2. Please see relevant sections namely- Proviso to section 2(9) of ESI Act, 1948 and Rule 50 of ESI (Central) Rules, 1950. For Contribution periods please see Regulation 4 of ESI (General) Regulations,1950.
SOUBHIK KUMAR GHOSH
Dear Karan Jaoker
Please see the components of ESIC salary, which you have said >15000/- pm.
OT cannot be a component to that. There should be some fixed allowances, which can be treated as Gross Salary component to get relief from ESIC.
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