Salary Increase Impact: Can I Stop My ESIC Contribution Immediately?

I was getting a salary of Rs. 17,000 till December 2016. Now, my salary has been increased to Rs. 21,250 w.e.f. January 2017. However, as per my company's norms, we receive the arrears pay after 3 months, i.e., with the April month salary. I am getting my arrear pay along with my revised amount. Since my salary has been increased to Rs. 21,250, I have now crossed the ESIC limit. So, please let me know, can I stop my ESIC contribution with immediate effect? If NO, then how long do I need to contribute and why? Please clarify!

You need to wait until the end of March since the contributory period of ESIC is from April to September and October to March. Any increment or salary revision will not affect the ESIC contribution until the 6-month contributory period is completed.

Dear Sreelagna,

You are an employee or employer. If you are an employee, your employer will exclude you from the purview of the ESI Act from April 2017, provided your monthly gross salary is above Rs 21,000 per month, effective from 01/04/2017. Your employer will take appropriate action, so please wait before worrying for nothing.