I heard that ESI is mandatory for employees who are drawing wages less than 15K. My salary was revised on June 14 (now over 15K). However, ESI is still being deducted from my salary. HR is saying that ESI cannot be stopped. Can somebody help me explain this to my HR? Is there any act or law written on this?
From India, Mumbai
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From India, Mumbai
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Please share any circular reference based on which we can STOP contributing in the same month, if the salary increases beyond ESI Limit. It would be helpful to many people who go by rule book.
From India, Mumbai
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From India, Mumbai
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The copy of any circular that you desire is not available since, by virtue of the provisions contained under section 2(9) of the ESI Act, 1948, read with Rule 50 of ESI (Central) Rules, 1950, employees are deemed to be covered until the close of their respective contribution period.
However, while calculating Rs. 15,000 per month, please ensure that the amount does not include overtime. Based on overtime, an employee cannot be exempted.
From India, Noida
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944However, while calculating Rs. 15,000 per month, please ensure that the amount does not include overtime. Based on overtime, an employee cannot be exempted.
From India, Noida
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You are well aware that the ESI ceiling limit is ₹15,000 per month on gross salary. If a person is drawing a salary not exceeding ₹15,000 per month, they will be covered under the ESI Act, and ESI contribution shall be payable on the gross salary at the applicable rate (Employee @ 1.75% & Employer @ 4.75%). In the ESI Act, there are two contribution periods, i.e., April to September & October to March.
Your salary was revised from June, and as such, you fall within the contribution period from March to September, due to which ESI contribution shall be deducted till September. Your HR Department will stop the deduction of ESI contribution from your salary with effect from October. However, it is to be noted that you will continue to get medical facilities from ESIC till the end of the next contribution period (October to March).
From India, Calcutta
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Your salary was revised from June, and as such, you fall within the contribution period from March to September, due to which ESI contribution shall be deducted till September. Your HR Department will stop the deduction of ESI contribution from your salary with effect from October. However, it is to be noted that you will continue to get medical facilities from ESIC till the end of the next contribution period (October to March).
From India, Calcutta
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ESI Wages.doc