Salary Revision and ESI Deductions: What Does the ESI Act of 1948 Say About This Situation?

Hi all,

If an employee is receiving a salary revision in May 2017 from Rs. 18,000 to Rs. 25,000, we are deducting the ESI until September 2017. Are there any points in the ESI Act of 1948 that apply to this situation? Can you please provide the details?

Silambarasan V

Dear Slambarasan,

The contribution period is from April to September and October to March. Therefore, once ESIC is contributed in any month, it is compulsory to carry it until the period ends. The same provision is also made under the ESIC Act.

Thank you.