Salary Increase Dilemma: Is Your Employer Still Paying ESI Contributions for 6 Months?

Hi friends,

Please confirm, if an employee was getting 17,000 (Gross) and after an increment, his salary is 21,100 (gross). Then, is the employer liable to pay the employer's part to ESI for the next 6 months?

Dear Nuv,

Yes, employers and employees can pay ESI until September or until March. Please mention the month in which the employee received the increment.

Hi,

Please note that there is a Contribution Period and subsequent Benefit Period in ESI. For example, for the Contribution Period from October to March, the Benefit Period will be from April to September. If an employee's gross salary increases above Rs. 21,000 per month from December onwards, they will continue to be covered under ESI until March of the following year. From April onwards, they will no longer be covered under ESI.

Please apply this logic in the above case.

Regards,
Sumeet