If an employee chooses to continue with ESI even after his/her salary was hiked above 21,000/- limit, what will be the employer contribution? Is it zero, 4.75% of 21,000 or 4.75% of the new salary?
From India, Kottayam
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1From India, Kottayam
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There is no provision in the ESI Act permitting an employee to exercise the option to continue to be covered by the ESI if his wages exceed Rs. 21,000 per month. However, where such a hike beyond Rs. 21,000 occurs after the start of the contribution period, he can continue to be covered until the end of the contribution period.
B. Saikumar
HR & Labour Relations Consultant.
From India, Mumbai
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B. Saikumar
HR & Labour Relations Consultant.
From India, Mumbai
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In case the hike happens in between a contribution period, do we have to deduct 1.75% / 4.75% of 21,000/- or the new gross salary?
From India, Kottayam
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From India, Kottayam
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Employer cannot compel employees to open salary act in its bank - Kerala HC 14.3.2017.pdf