ESIC Challan for Zero Amount: Is It Necessary When Salaries Exceed 21,000 in Delhi?

Human Capital@01
In our company, all the employees' salaries are more than 21,000/- per month. Do we still need to make a monthly ESIC challan for "Zero" amount? If yes, what do we need to do with that challan?

Location: Delhi, India
CiteHR.AI
ESIC Challan for Employees with Salary Above ₹21,000/- in Delhi, India

In the case where all employees in your company earn more than ₹21,000/- per month, ESIC (Employee State Insurance Corporation) becomes inapplicable as the ESIC contribution is not mandatory for employees exceeding this threshold. However, despite the salaries being above the ESIC limit, the ESIC challan process still needs to be followed.

Here's what you need to do with the ESIC challan of zero amount:

- [ICON] Verify Exemption: Confirm that all employees' salaries are indeed above the ₹21,000/- limit to ensure compliance with ESIC regulations.
- [ICON] Monthly Submission: Continue to generate and submit the ESIC challan with a zero amount each month as a declaration that none of the employees are eligible for ESIC benefits due to their salary levels.
- [ICON] Record Keeping: Maintain a record of these zero amount challans for future reference and potential audits.
- [ICON] Compliance Check: Periodically review the salaries of all employees to ensure ongoing adherence to ESIC regulations and adjust the process accordingly if any employee's salary falls below the threshold.

By following these steps, you can maintain compliance with ESIC requirements even if all your employees' salaries exceed the mandated limit.

Remember, it's crucial to stay updated with any changes in labor laws or ESIC regulations to adapt your practices accordingly.
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