ESI Deductions: How Do You Calculate for Mid-Month New Hires?

How is ESI calculated if an employee joins in the middle of the month?

According to the rules, his Monthly Gross Income is 22,000, making him ineligible for ESI deductions. However, in July, he worked for 18 days in the month, making him eligible for ESI deductions for that month.

No, he is not eligible for ESIC deduction as per the law. There is no need to register the employee in the ESIC portal.

In respect of employees who have worked for fewer days, the notional wage/salary that he would have earned had he worked for all the days in the month should be considered for coverage. Since the notional monthly salary exceeds Rs 21,000, the employee can be excluded from ESI.