Question about ESI Contribution and Salary Increment
Can anyone answer this question?
There is an employee whose gross salary was below 21,000/- until March '17, making him liable to pay the ESI contribution. The company was supposed to revise his salary effective April '17, but due to some reasons, it could not be revised in April '17. Consequently, his April '17 salary was paid according to his old salary, and ESI was deducted and paid to the ESI department. The salary increment was implemented in May '17, effective from April 1st, '17. As per his incremented salary, his ESI amount was not deducted.
I understand that the contribution (employer and employee) cannot be refunded once it is paid to the ESI department. My question is, why can't the employer refund the employee contribution from his side, which was actually not deducted according to the incremented salary?
Thanks,
Purushottam
From India, Mumbai
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Can anyone answer this question?
There is an employee whose gross salary was below 21,000/- until March '17, making him liable to pay the ESI contribution. The company was supposed to revise his salary effective April '17, but due to some reasons, it could not be revised in April '17. Consequently, his April '17 salary was paid according to his old salary, and ESI was deducted and paid to the ESI department. The salary increment was implemented in May '17, effective from April 1st, '17. As per his incremented salary, his ESI amount was not deducted.
I understand that the contribution (employer and employee) cannot be refunded once it is paid to the ESI department. My question is, why can't the employer refund the employee contribution from his side, which was actually not deducted according to the incremented salary?
Thanks,
Purushottam
From India, Mumbai
Acknowledge(0)Amend(0)
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Salary Increment.pps
Employee Salary file - India 2016 AB.xls
ESI Circular - New Salary ceiling of Rs. 15,000 effective May 1, 2010.pdf