I want some help in arriving at the correct figure for the employer's contribution for ESI. To give an example, an employee has a salary of 8000 per month in October (beginning of the contribution period), and thus the employer's contribution is 4.75% of 8000, which equals 380 rupees. Now, the salary increases to 12000 per month starting from January, and thus the employee goes outside the ambit of ESIC. However, the employee will have to contribute until the end of the contribution period, i.e., till March.
I want to know, from January to March, what will be the amount to be paid as the employer's ESI contribution. Is it 4.75% of 12000 = 570 or 4.75% of 10000 = 475 rupees (10000 being the maximum salary for which ESI is applicable)?
A.V. Veerkar
From India, Calcutta
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I want to know, from January to March, what will be the amount to be paid as the employer's ESI contribution. Is it 4.75% of 12000 = 570 or 4.75% of 10000 = 475 rupees (10000 being the maximum salary for which ESI is applicable)?
A.V. Veerkar
From India, Calcutta
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Hi,
At a salary of Rs. 12,000 a month, this employee is out of ESI coverage, and there is no need to contribute to the ESIC after the pay increase. Once the employee is not under coverage, you need not submit contributions from the employee or the employer's side. ESI is a little different from EPF. Even if you want to contribute, you can do so, but at the actual salary that the employee is drawing.
Regards,
Umesh
(umesh.chaudhary@ril.com)
I want some help in arriving at the correct figure for the employer's contribution to ESI.
To give an example:
An employee has a salary of 8000 pm in Oct (beginning of the contribution period), and thus, the employer's contribution is 4.75% of 8000 = 380 rupees. Now the salary increases to 12,000 per month from January, and thus, he goes outside the ambit of ESIC. However, he will have to contribute until the end of the contribution period, i.e., till March.
I want to know, from Jan to March, what will be the amount to be paid as the employer's ESI contribution. Is it 4.75% of 12,000 = 570 or 4.75% of 10,000 = 475 rupees (10,000 being the maximum salary for which ESI is applicable)?
A. V. Veerkar
From India, Delhi
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141At a salary of Rs. 12,000 a month, this employee is out of ESI coverage, and there is no need to contribute to the ESIC after the pay increase. Once the employee is not under coverage, you need not submit contributions from the employee or the employer's side. ESI is a little different from EPF. Even if you want to contribute, you can do so, but at the actual salary that the employee is drawing.
Regards,
Umesh
(umesh.chaudhary@ril.com)
I want some help in arriving at the correct figure for the employer's contribution to ESI.
To give an example:
An employee has a salary of 8000 pm in Oct (beginning of the contribution period), and thus, the employer's contribution is 4.75% of 8000 = 380 rupees. Now the salary increases to 12,000 per month from January, and thus, he goes outside the ambit of ESIC. However, he will have to contribute until the end of the contribution period, i.e., till March.
I want to know, from Jan to March, what will be the amount to be paid as the employer's ESI contribution. Is it 4.75% of 12,000 = 570 or 4.75% of 10,000 = 475 rupees (10,000 being the maximum salary for which ESI is applicable)?
A. V. Veerkar
From India, Delhi
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Hi Till the end of the cycle ie Oct-Mar you need to deduct the ESI once started in Oct. The deduction would be complete salary ie 12000/-
From India, Tiruppur
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From India, Tiruppur
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What bagema said is right ESI should be paid till the end of contribution period n for the full amount 12000 Chandrasekar
From India, Pune
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From India, Pune
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ESI is payable on any employee irrespective of level having salary/wages within 10000/- pm. regards,
From India
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From India
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Hi,
Thanks a lot Bagema and Chandrashekhar,
That means for a salary of 12,000 per month, the employer will have to deposit 575 per month. It looks a little illogical. When the upper limit for ESI coverage is 10,000, beyond which it ceases to be applicable, one would expect that there would be a cap of 475 rupees (4.75% of 10,000) for ESI contribution. Strange are the ways of the law. Anyway, thanks a lot for the clarification.
A. V. Veerkar
From India, Calcutta
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Thanks a lot Bagema and Chandrashekhar,
That means for a salary of 12,000 per month, the employer will have to deposit 575 per month. It looks a little illogical. When the upper limit for ESI coverage is 10,000, beyond which it ceases to be applicable, one would expect that there would be a cap of 475 rupees (4.75% of 10,000) for ESI contribution. Strange are the ways of the law. Anyway, thanks a lot for the clarification.
A. V. Veerkar
From India, Calcutta
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Thanks. As trainee, doesn’t fall under the definition of Employee. Do we have to provide the medical insurance to the subject. Or the WC Act is applicable. reg
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One-time Relaxation For Employers On Filing Of ESI Contribution For The Contribution Period Apri.pdf