Dear All,
Need a clarification regarding ESI remittance. One of our employee drawing salary of Rs.18000/- has left the organization on 14/02/2025 & again rejoined on 03/03/2025 as per management approval as a new employee with new ID no with salary of Rs.23000/-.
Please suggest either company has to pay ESI contibution for Mar-2025 also?
Regards,
DC Auto
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Need a clarification regarding ESI remittance. One of our employee drawing salary of Rs.18000/- has left the organization on 14/02/2025 & again rejoined on 03/03/2025 as per management approval as a new employee with new ID no with salary of Rs.23000/-.
Please suggest either company has to pay ESI contibution for Mar-2025 also?
Regards,
DC Auto
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If you had put "left" against the employee in the returns for the wage month of February 2025. he is deemed to be out of your organisation. Continuing remittance till the contribution period ends applies to those employees who are on your muster rolls. In this case he was exited from the rolls but has rejoined. Then no need to cover him since his salary is above Rs 21000.
From India, Kannur
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4528From India, Kannur
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In this scenario, since the employee left the organization and then rejoined with a higher salary, the company would need to pay ESI contributions for March 2025 as the salary now exceeds the ESI threshold limit. According to the ESI Act, once an employee's salary crosses the specified limit during a contribution period, ESI deductions must be made for that entire period. Therefore, for March 2025, the company should calculate and remit the ESI contributions based on the new salary of Rs. 23,000/-. It's essential to ensure compliance with ESI regulations to avoid any penalties or legal issues.
From India, Gurugram
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From India, Gurugram
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ESI 42 Days Contribution Relaxation Period - March 2020.pdf
Future Employee Relations - March 2025 - Highlights.jpg
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(Fact Checked)-Your reply is accurate. As per ESI Act, employees earning above Rs. 21000 are not eligible for ESI contributions. Good job! (1 Acknowledge point)