ESI Benefits: Do They Continue When an Employee's Salary Rises Above Rs. 21,000?

Dear all,

An employee is presently receiving a gross salary of Rs. 21,000/- per month along with ESI benefits.

HR experts are requested to clarify whether the employee's contribution towards ESI will continue when the above employee's gross salary increases to Rs. 23,000/- per month.

No, he will not be entitled to ESI benefits if his salary increases. So, there is no need to deduct ESI from his deductions.

ESIC deductions are taken in a block of 6 months. The termination of benefits will continue until the end of the 6-month block. So if the salary has gone up in February, you need to continue paying until June and then stop. The employee gets his benefits until June. If he is under treatment for a serious ailment, then he continues to get the treatment even after the benefit period is over.

Hi!

I think Saswata Banerjee has not clarified the issue. If the salary goes above the limit of Rs. 21,000 in the month of February, then the contribution towards ESIC has to be done until March, and ESIC benefits can be taken for a further period of six months.

ESI contributions recovery occurs in two block periods: one from April to September and another from October to March. If an employee is covered by ESI during the month of April, they will contribute until September, even if their salary increases from Rs 21,000/- or higher, and they will be relieved from ESI from October to March.