Employee on ESIC Leave After Accident: Do I Still Pay ESIC and EPFO Contributions?

My staff went through an accident, and he is on leave. ESIC will be paying the salary to him. Do I have to pay the monthly contribution in ESIC and EPFO?

ESI and EPF are contributions from the salary paid or payable by the employer. When an employee is on ESI leave, you are not paying any salary. That means the employee receives zero amount as salary during this period. Salary being zero, how can you pay contribution? Contribution is a particular percentage (12% or 1.75% or 4.75%, as the case may be) of SALARY.

Dear Sir,

Thank you, sir, for your reply. So, for ESIC monthly contribution, file zero for working days and monthly wage, and the code is 1. For PF wages also zero. Is it right, sir?

Understanding Salary and Contributions During Leave

Why do you doubt? Just apply this theory: when an employee is on leave without pay for the entire month, they will not be paid a salary, meaning the salary will be ZERO. When the contribution is payable at the rate of 12% of the salary paid, the contribution is equal to zero, or 0 x 12% = 0.

An employee on ESI leave will not be paid a salary from the company, and hence the salary will be zero. It is immaterial whether they receive sickness or accident benefits from the ESI Corporation. For contribution purposes, the payment should be made by the employer.