Employee's Eligibility For ESI Deductions

vikasmsw1986
Dear seniors, if one employee's salary is 14800 in june 2016 & in july his gross salary is 17000, is he still eligible for ESI contribution ? Please explain it as it was asked in an interview to me.
deveshch
Dear Vikas,
only fixed component shall be consider for ESI deduction if gross salary has been increased from 14800 to 17000 then yes ESI contribution shall be made even on 17000 till 30 september 2016,
Thanks & Regard
Devesh Chauhan
Practicing in Accounts, Finance, Taxation, Labour Laws
Apex Management
Dear Vikas
Under the ESI scheme, if wage is increased beyond the ceiling limit after the commencement of any currency period, the contributor is required to contribute till the closure of that currency period. in your case, ESI contribution will be payable till 30th September, 2016.
P K Sharma
vikasmsw1986
Thank you all seniors, but tell me one more thing. If salary is increased from 14800 to 17000, on which amount employee & employer will contribute till the end of fiscal year , in this case till sept. 2016 ( i.e. on 14800 or 15000 or complete 17000).
pramodthakar
It is required to deduct ESI contribution till September, i.e. contribution period April to Sept. From October he/she will be out of ESIC. Contribution should be deducted on 17,000/-.
SOUBHIK KUMAR GHOSH
Dear Vikas
Greetings of the day!!!!!!!
Under Employees’ State insurance Act, 1948, we have to submit Return of Contribution/ Half yearly return 11th April (i.e for the contribution Period October to March) and 11th November (i.e for the Contribution period April to September) every year. The person can come out from ESIC after this period.
But ensure, his salary, calculated for exemption from ESIC must have fixed components. Which will be paid month on month to him.
ravi_561
employer as well as employee contribution for ESI till sep (APRI-SEP) or march(oct-march) as per reckoning
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