How Do We Handle ESIC Arrears for September 2017 After Salary Increase?

We were paid salaries for September 2017 at $5500, and we should provide arrears for that month's salary. How can we pay the ESIC arrears in September 2017?

We have increased the employee salaries as the minimum wage is $8600.

Please choose the supplementary challan option and pay the price difference.

Hi Sandeep,

Whenever there is an increase in wages or remuneration declared with retrospective effect, the liability towards payment of contributions accrues only in the month in which the decision is announced. No contribution is payable on the arrears pertaining to the period prior to the month of declaration or announcement.

Thanks,
Manish

Dear All,

Is it possible that we will not file the ESI arrears return in increments as we have increased salaries in June, but the increase is effective from April? Kindly suggest to us whether we should file the arrears return for the months of April and May.

Thanks & regards,
J. S. Negi

Dear Sir,

If you are paying arrears in salary, then that will contribute to the gross salary. Simply deduct ESI contribution on the gross salary; ESI contribution will get regularized.