On which ESIC is calculated gross salary or gross salary paid (after LWP)?

Shubhamsbr
On which ESIC is calculated gross salary or gross salary paid. Does leave without pay taken will affect in my calculation.
Ashutosh Thakre
ESIC is always calculated on Gross Salary. If the person has LWP, then as the Gross Salary will go down, the ESIC will also go down.
ESIC will not remain the same if you have Leave Without Pay....
Regards,
Srinath Sai Ram
ESIC, EPF, PT, IT, are all deducted based on actual Earnings. As & when earnings come down, deductions will also reduce accordingly.
loginmiraclelogistics
One more thing is, the Actual Earnings should also include accruals & arrears, both paid and not paid/paid subsequently for certain applications.
saswatabanerjee
Esic is on gross salarm paid, before statutory deductions.
So if a person is on leave without pay the esic dues go down
loginmiraclelogistics
What if employees go on continuous LWP for months due to whatever reasons could be. Some are absenting without trace and taken back on certain grounds. What happens wrt to ESI ?
saswatabanerjee
In such a case where the person is absent without pay his esic is reduced, coming to zero if he is absent throughout the month
loginmiraclelogistics
And there is no contribution for this period. Does he eligible for ESI Benefits, without no contribution to his ESI a/c during this period? May be he will get the benefits during the 'Benefit period' by virtue of contributions paid prior to that. But when there is no contribution will he be eligible for the corresponding 'benefit period' ? The break how is to be treated ?
Harsh Kumar Mehta
Sir, the eligibility to various benefits under ESI Act, 1948 depend upon the contribution actually paid or payable and the number of days for which such contribution paid or payable. If an insured person has not worked and is without pay, naturally this position will affect his eligibility in next benefit period.
loginmiraclelogistics
Mr.Mehta,
This is the moot point. There are instances, an employee goes on LWP (not on medical/health grounds) other than 'partial or permanent' disablement. For e.g. study leave, absenteeism and so on. Obviously no work-no pay and no contribution to ESI as well which render him ineligible to ESI benefits for the corresponding benefit period. Is there any way out to address this situation ?
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