ESI Coverage Confusion: What Happens When Wages Exceed Rs. 21,000?

Shakshi

ESI Coverage and Salary Deductions

Is an employee still covered under the ESI scheme if his/her wages exceed Rs. 21,000 in a month? And will it be deducted from his/her salary?

An employee will no longer be covered under the ESI scheme if their wages exceed Rs. 21,000 in a month. In such a case, ESI deductions will not be applicable to their salary.

rkn61

If the concerned employee is in the contribution period (April-Sept and Oct-Mar), he will continue to be covered, and contributions will continue to be remitted until the contribution period ends, even if his salary is increased from Rs. 21,000/-.

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute