ESI Calculation for Short-Term Work: Is a 3-Day Employee Exempt from Contributions?

How should the ESI be calculated in case an employee has worked only for 3 days in a month, and for this particular period, his earned gross is Rs. 2117/-? Will he be exempted from ESIC employee contribution?

Hi, why do you want to be exempt from ESI? Calculate ESI based on the actual earned gross salary for 3 days.

If the notional wages, the wages he would have earned had he been employed for 30 days in the month, exceed Rs 21,000, you can exclude him from the coverage of ESI. This often happens in the month of one's joining. If you cover him because his earnings are less than Rs 21,000 due to the fact that he has worked only for a few days, then you will have to cover him until the end of the contribution period. Therefore, if his monthly gross is more than Rs 21,000, it is better to exclude him from ESI.