ESI Contributions and Salary Hike: Can I Opt Out After My Appraisal in March?

Hi,

Due to the new ESI rule increasing the limit to 21000 from 15000 currently, I am facing a reduction in ESI contributions starting from January 2017. In March, I am due for my appraisal. Once it is confirmed that my gross income has increased to more than 21000, will ESI still be compulsory on my salary until the contribution period is over, or can I be relieved from it (starting from March)?

Sir, the new contribution period will start from April. If your wages (excluding overtime) in the base month of April and onward are more than Rs. 21,000 per month, then naturally you will not be covered under the said Act. However, if your wages are up to Rs. 21,000 or less in the base month of April 2017, then the contribution is required to be paid until the close of the contribution period, i.e., up to September 2017, even though for the next five months, the wages may be more than Rs. 21,000 per month.