ESI Contribution Confusion: How to Calculate for an Employee with 28 Working Days?

Dear All,

In my company, we calculate monthly wages on a /26 basis. However, I have a doubt regarding the ESI contribution for this month. One of the employees worked for 28 days, and their salary exceeds 21000. How should I calculate their ESI contribution?

Please advise me on this matter. Thank you.

If the total earnings, excluding overtime wages, are not more than Rs. 21,000, he should be covered under ESI. If you pay for only 26 days, but for one employee, you have paid for 28 days, it should be regarded as overtime payment or payment for two days in excess of normal working days in a month. If the notional wages for 26 days are not more than Rs. 21,000, cover him under ESI and deduct and contribute ESI on the total earnings (including the payments for overtime or two days extra worked).