High Salary and ESI Benefits: How to Handle Employee Requests for ESI and PF?

Dear Seniors,

Hello, I want to know about the ESI deduction for the high salary. One of the employees in our organization is withdrawing the amount of 22000/- and now he wants the benefit of ESI and PF. What should I do...?

ESI and PF Eligibility for High Salary Employees

An employee drawing a salary above Rs 21,000 is exempt from ESI; hence, they are not eligible for any medical benefits under ESIC. However, for PF benefits, if your employee was previously a member of the PF scheme, then the employee is eligible for PF benefits even if the salary is above Rs 21,000/-. You can provide PF benefits up to a maximum limit of Rs 15,000/- (Basic + DA).

If your employee was not a member of the EPF scheme previously, you can still provide PF benefits up to a maximum limit of Rs 15,000/- if your management approves this.