Employee was ESIC eligible before increment, now has crossed ESIC eligibility but has to share the next 6 months for ESIC contribution?

Mohankumar1969
If the employee got increment in the month of Jul-2016 w.e.f. Apr-2016 who was ESIC eligible before increment, now after increment crossing the ESIC eligibility. But as per ESIC rules, the employee has to share the next 6 months for ESIC contribution. Is this right need urgent help/reply/
Harsh Kumar Mehta
Sir, in the situation as mentioned by you, the employee will be coverable upto close of current contribution period even if his wages have crossed/enhanced from coverable limit of Rs.15000/-. Contribution is required to be deducted on total amount of wages during the period irrespective of the fact that during July to September the same may be exceeding to the coverable limit as above. The present contribution period will close on 30th September.Please see relevant provisions of ESI Act, 1948 and rules/regulations framed thereunder.
imsudu
if any contractual worker crossed ESI limit and company want the same benefits as under ESIC, what best a company can do without impacting company cost.
Pradeep
Apex Management
Mehta ji,
You have rightly conveyed the provisions of the scheme to remain contributor till the close of currency period and employee and employer's are liable to pay contributions even beyond the ceiling limits of Rs.15000/-.
For example, the salary is increased to Rs.20000/- per month, the contribution is also payable on Rs.20000/- per month but why the benefit calculations are restricted at the ceiling limit. The contribution is payable at Rs.20000/- but benefit is restricted at Rs.15000/- . I could not understand the logic.
P K Sharma
Apex Management
Dear Rajiv,
You can opt for a Workmen Compensation policy of any General Insurance Company. As far comparison of benefits at par with ESIC is concerned, you will never get. ESIC extend benefits without any limits whereas General Insurance policies put certain barriers.
P K Sharma
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