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ESIC Deduction Inquiry for Salary Increase

I want to know when the salary is increased in the month of Apr 12 to Rs. 15,000 and above, but the effective month is May 12 and the same is paid with Apr 12 arrears. Up to what month should we deduct the ESIC amount and what amount should be deducted as ESIC? Our consultant is saying the amount should be deducted up to Oct 12. As per my knowledge, we should stop the deduction for the salary of 15,000 and above as they are covered under the medical policy. Please update me with the rules for the same.

Please reply to my email id [Email Removed For Privacy Reasons] urgently as I require this information promptly.

Regards,
JANHAVI

From India, Mumbai
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As per the ESIC Act, contribution periods are from Apr-Sep and Oct-Mar. If contributions are made for any employee during one month in any contribution period, the same needs to be continued until the end of the contribution period. There is no provision to exclude based on the wishes of the employers.

In the case mentioned above, contributions need to be paid for wages of Sep 12 on the increased gross amount only, not the previous one. Starting from Oct 12 wages, the employee can be excluded from the provisions of ESI.

I hope the matter is clear to you. For any further queries, please feel free to contact Amitava at [Email Removed For Privacy Reasons].

Regards,
Amitava

From India, Calcutta
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Dear Amitava, please let me know where I could find the written rules and regulations regarding the contributions that need to be paid for the wages of Sep 12 on the increased gross amount only and not the previous one. Looking forward to your help and support.

Regards,
Rahul Sharma

From India, Ghaziabad
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