Dear Team, An Employee has been covered under ESIC and contribution is being paid on regular basis. On the month of November 2017 the employee receives an increment. As per the revised salary paid in the month of November the monthly gross exceeds INR 21000. The increment is effective 1st April so the arrears are paid in Mid December.
As per my understanding, ESIC contribution once started need to be continued till completion of 6 month's period. In this case, the contribution shall be paid till March 2018. April 2018 onwards, the contribution to ESIC shall be stopped.
Also since the ESIC contribution is paid, the employee will be eligible for benefits as per ESIC rules.
Request your views and suggestions in case my understanding is different from actual practice...
As per my understanding, ESIC contribution once started need to be continued till completion of 6 month's period. In this case, the contribution shall be paid till March 2018. April 2018 onwards, the contribution to ESIC shall be stopped.
Also since the ESIC contribution is paid, the employee will be eligible for benefits as per ESIC rules.
Request your views and suggestions in case my understanding is different from actual practice...