Dear members, do the ESI rules specify that once an ESI deduction is made from an employee's salary, you have to mandatorily deduct it for six months? The reason for my query is that we have recently announced increments at our workplace. This should ideally have been done at the end of March but was done at the end of April. Hence, we paid the ESI amount based on the previous year's salary. However, after the increment, a few employees have crossed the ESI threshold and are not liable for this. However, we have been informed that we need to deduct the ESI amount for at least six months before we can stop.
Can any of you shed more light on this?
Thanks and regards
From India, Bangalore
Acknowledge(0)
Amend(0)
1Can any of you shed more light on this?
Thanks and regards
From India, Bangalore
Acknowledge(0)Amend(0)
ESI Contribution Cycles and Employee Salary Increments
ESI has two contribution cycles of six months: from April to September and from October to March. Your increment is applicable from April, and some of your employees' salaries exceed the contribution limit. Still, you have to contribute until September, and they can avail benefits until that date.
Thank you.
From India, Bhubaneswar
Acknowledge(0)Amend(0)
ESI has two contribution cycles of six months: from April to September and from October to March. Your increment is applicable from April, and some of your employees' salaries exceed the contribution limit. Still, you have to contribute until September, and they can avail benefits until that date.
Thank you.
From India, Bhubaneswar
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
ESI _General PF_ Rules 1995.pdf
ESI deduction.doc