Exceeding ESIC Salary Limit: How Does It Affect Employee Exit Period?

Respected all,

What is the employee exit period in ESIC if an employee's salary exceeds the upper limit of 21,000?

Hi,

ESI Contribution Period

The ESI contribution period will be:

1st April to 30th September
1st October to 31st March

If the wage of an employee exceeds the wage limit of Rs. 21,000 after April or October for the respective contribution periods, then the employee continues to be an employee till the end of that contribution period. Hence, the contribution is to be deducted and paid on the total wages earned. If the wages exceed Rs. 21,000 in the middle of the contribution period, then the employee will continue to contribute to ESI till the end of the contribution period.

Hi, Under the act, there are two contribution periods: 1st April to 30th September and 1st October to 31st March of the following year.

1. If the limit exceeds between April and September, the out-of-coverage date is 30th September. (Need to pay the contribution till September)

2. If the limit exceeds between October and March, the out-of-coverage date is 31st March. (Need to pay the contribution till March)

Regards, E. Stephen