Understanding ESI Benefits and Contributions
I am a manager of a simple organization. Kindly explain the ESI benefits and contributions for employees who earn a basic salary above 15,000 from the employee's side.
Employee Earnings Above 15,000
Kindly explain the situation to the employer when an employee earns above 15,000. Should the employee continue with ESIC or opt for other private insurance benefits?
Private Insurance Plan Scenario
In the scenario where an employee joins a private insurance plan, how can I fill the contribution column in the ESI monthly contribution list, and how can I manage the payroll in accounting?
Regards
From India, Tirunelveli
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I am a manager of a simple organization. Kindly explain the ESI benefits and contributions for employees who earn a basic salary above 15,000 from the employee's side.
Employee Earnings Above 15,000
Kindly explain the situation to the employer when an employee earns above 15,000. Should the employee continue with ESIC or opt for other private insurance benefits?
Private Insurance Plan Scenario
In the scenario where an employee joins a private insurance plan, how can I fill the contribution column in the ESI monthly contribution list, and how can I manage the payroll in accounting?
Regards
From India, Tirunelveli
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Understanding ESI Applicability
The ESI Act is applicable if the gross salary of an employee is less than Rs. 15,000. It is mandatory to cover the employee under ESIS if your establishment is covered or coverable under ESIS. If the gross salary is above Rs. 15,000, ESI is not applicable, and the employee should not be covered under ESIS.
If the gross salary of any employee exceeds Rs. 15,000 during the contribution period, they should continue to be covered under ESIS until the contribution period ends. There is no substitute for covering an employee under ESIS when applicable.
I hope you understand the information provided and can infer the answer to your query. If not, please consider hiring a professional service like mine.
Thank you.
From India, Mumbai
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2584The ESI Act is applicable if the gross salary of an employee is less than Rs. 15,000. It is mandatory to cover the employee under ESIS if your establishment is covered or coverable under ESIS. If the gross salary is above Rs. 15,000, ESI is not applicable, and the employee should not be covered under ESIS.
If the gross salary of any employee exceeds Rs. 15,000 during the contribution period, they should continue to be covered under ESIS until the contribution period ends. There is no substitute for covering an employee under ESIS when applicable.
I hope you understand the information provided and can infer the answer to your query. If not, please consider hiring a professional service like mine.
Thank you.
From India, Mumbai
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BENEFITS UNDER ESI.ppt
ESI Circular - New Salary ceiling of Rs. 15,000 effective May 1, 2010.pdf
Salary Breakup with ESI.xls