How Do You Handle EPIC Contributions for Salaries Over $21,000? Seeking Advice!

Hi, please suggest how to close the EPIC contributions for a salary above $21,000.

Hi, An employee whose gross emoluments exceed Rs. 21,000 is not eligible to be covered under the ESI Act.

When an employee's salary enhancements or appraisals result in exceeding the Rs. 21,000 criteria, they will continue to pay until the next ESI contribution period. The two ESI contribution periods are from 1st April to 30th September and from 1st October to 31st March.

For example, if an employee earning Rs. 20,000 gets a salary increase to Rs. 22,000 in the month of May, they will continue contributing ESI on the revised salary up to September of that same year.

You mean ESI for EPIC?

When the salary of an employee as per ESI 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. The two ESI contribution periods are 1st April to 30th September and 1st October to 31st March.

How to stop the contribution 'online'?

Using the portal, click on the Employee's State Insurance (ESI) and then check or uncheck the checkbox under "Please Provide ESI Details" to disable/enable ESI contribution respectively. Once done, click Update. If you choose to uncheck the box, you need to provide the ESI number for the employee and the employer. If needed, you can take assistance from this link: https://support.keka.com/support/sol...or-an-employee