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I would like to know ESIC Contribution in respect of arrears of wages & ESIC arrears calculating period ?
From India, Mumbai
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From India, Mumbai
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As per section 2(22) of the ESI Act, 1948, the term 'wages' includes all remunerations (except as specifically excluded in the said section) paid or payable. Hence, the contribution on arrears of wages is also payable under the provisions of the said Act.
However, in my opinion, the contribution on such arrears is payable since the date when such a revision in wages is announced or wages are reported pending for payment. Before making a final decision, it would be more appropriate to consult with the appropriate Regional Office of ESIC in your area for a decision on the matter. This will help ensure that omitted wages are not pointed out by the Inspecting Officer during record inspections.
For calculating the period of contribution, please refer to section 2(23) of the said Act, which defines 'wage period' as the period in respect of which the wages are ordinarily payable to an employee.
Regards,
Harsh Kumar Mehta
From India, Noida
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However, in my opinion, the contribution on such arrears is payable since the date when such a revision in wages is announced or wages are reported pending for payment. Before making a final decision, it would be more appropriate to consult with the appropriate Regional Office of ESIC in your area for a decision on the matter. This will help ensure that omitted wages are not pointed out by the Inspecting Officer during record inspections.
For calculating the period of contribution, please refer to section 2(23) of the said Act, which defines 'wage period' as the period in respect of which the wages are ordinarily payable to an employee.
Regards,
Harsh Kumar Mehta
From India, Noida
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Today I received clarification regarding the same from ESIC Maharashtra.
"As and when any increase in wages/remuneration is declared with retrospective effect, the liability towards payment of contribution accrues only in the month in which the decision is announced, and no contribution is payable on the arrears pertaining to the period prior to the month of declaration/announcement."
From India, Mumbai
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"As and when any increase in wages/remuneration is declared with retrospective effect, the liability towards payment of contribution accrues only in the month in which the decision is announced, and no contribution is payable on the arrears pertaining to the period prior to the month of declaration/announcement."
From India, Mumbai
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No contribution is payable on arrears of wages due to wage revision as a settlement or agreement to take retrospective effect. However, contribution is definitely payable on annual/periodical incremental arrears which are declared belatedly.
Regards,
S. Sankaralingam
Retd. Sr. Dy. Director, ESIC
Advocate & Labour Law Advisor
[Phone Number Removed For Privacy Reasons]
From India, Chennai
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Regards,
S. Sankaralingam
Retd. Sr. Dy. Director, ESIC
Advocate & Labour Law Advisor
[Phone Number Removed For Privacy Reasons]
From India, Chennai
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Employees are not benefited by the payment of contributions in respect of their arrears for previous years because, by the time of payment, the contribution-benefit periods based on which cash benefits are paid would be over.
Regards,
Varghese Mathew
From India, Thiruvananthapuram
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Regards,
Varghese Mathew
From India, Thiruvananthapuram
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I agree with the words of Mr. Varghese. There is no provision to exclude one. As per the ESIC Act, "EMPLOYEE" means any person employed for wages in or in connection with the work of a factory or establishment to which this Act applies. It only talks about the employee's contribution who is working in the establishment. Even though both the husband and wife work in the same establishment, the contribution has to be remitted to the ESIC if their salary is up to ₹15,000/-.
From India, Mumbai
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From India, Mumbai
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Before the issuance of a notification for the enhancement of the wage ceiling, the Central Government is required to issue a notification of its intention to amend the present provisions of the wage ceiling as per Section 95 of the ESI Act, 1948. It appears that the said notification of intention has not been issued so far. The exact position can be ascertained from the appropriate Regional Office of the ESIC.
With regards,
Harsh Kumar Mehta.
From India, Noida
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With regards,
Harsh Kumar Mehta.
From India, Noida
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ESIC Cealing Wages 10 to 15 Thousand.pdf