Latest minimum wages for ESI deduction are the minimum labor wages. For ESI deduction, the limit is up to Rs. 21,000. In other words, if a wage/salary is below Rs. 21,000, ESI deduction is mandatory.
Sir, as per Rule 52 of ESI (Central) Rules, 1950, employees receiving average daily wages up to Rs. 137 are not required to contribute under the ESI Act, 1948. However, the employers' share of contribution is necessary to be paid.
To be precise, as per the ESIS Act revised as of 9th August 2016, anyone earning less than 15,000 is required to be covered under ESIC. This wage threshold is effective from the 1st of May 2010.
The employer has to submit the number of days and wages paid. If the exemption is available to the specific employee, the employee's share would be ZERO. The employer is not exempted in any case.
Minimum wage is $21,000. Employee contribution is 1.75%, and employer contribution is 4.75% of the gross salary.
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