Can anyone tell me if ESI is deducted when an employee's salary is ₹14,000 per month? What is the maximum limit of ESI? Does it also vary from company to company, such as in IT compared to other sectors? Additionally, please inform me about the amount of PF deduction.
Thank you.
From India, Gurgaon
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2Thank you.
From India, Gurgaon
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ESI Wage Ceiling and Coverage Details
The wage ceiling for ESI coverage is ₹15,000 per month, effective from May 1, 2010. Wages include Dearness Allowance (DA), House Rent Allowance (HRA), Conveyance Allowance other than Travelling Allowance, and all allowances paid on a monthly basis. You can refer to section 2(22) of the ESI Act 1948.
Wages do not include overtime allowance for coverage purposes, but ESI contributions are payable on overtime.
Regards,
V. Ramachandrarao
From India, Gandhinagar
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The wage ceiling for ESI coverage is ₹15,000 per month, effective from May 1, 2010. Wages include Dearness Allowance (DA), House Rent Allowance (HRA), Conveyance Allowance other than Travelling Allowance, and all allowances paid on a monthly basis. You can refer to section 2(22) of the ESI Act 1948.
Wages do not include overtime allowance for coverage purposes, but ESI contributions are payable on overtime.
Regards,
V. Ramachandrarao
From India, Gandhinagar
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Dear vramachandrarao Please refer recent Chennai high court judgement on the exclusion of conveyance from ESI coverage. Shiva
From India, Madras
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From India, Madras
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Dear sir, ESI maximum limit is 15000/- per month. If employee gross salary is 15001/- then he will not eligeble to ESIC.
From India, Hyderabad
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From India, Hyderabad
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Wage Calculation Advisory
Please note that while calculating gross wages per month, exclude the Washing Allowance as per the departmental circular of ESI. For any further clarification, you may visit the ESI site, which will provide more insight.
Regards,
Ravi
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Please note that while calculating gross wages per month, exclude the Washing Allowance as per the departmental circular of ESI. For any further clarification, you may visit the ESI site, which will provide more insight.
Regards,
Ravi
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Components of Gross Salary
The Gross Salary can be divided into:
- Basic: 35% - 50% of Gross
- HRA: 40% of Basic in Non-Metro / 50% of Basic in Metro
- Medical Allowance: ₹1,250 per month up to ₹15,000 per annum
- Special Allowance: Balance of Gross will be provided
Regarding ESI
- Employers' Share: 4.75% on Gross Salary
- Employees' Share: 1.75% on Gross Salary
- Maximum Salary limit covered under ESI is ₹15,000. If above ₹15,001 per month, ESI will not be covered.
Regards,
K. SURESH - Miyapur
From India, Hyderabad
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The Gross Salary can be divided into:
- Basic: 35% - 50% of Gross
- HRA: 40% of Basic in Non-Metro / 50% of Basic in Metro
- Medical Allowance: ₹1,250 per month up to ₹15,000 per annum
- Special Allowance: Balance of Gross will be provided
Regarding ESI
- Employers' Share: 4.75% on Gross Salary
- Employees' Share: 1.75% on Gross Salary
- Maximum Salary limit covered under ESI is ₹15,000. If above ₹15,001 per month, ESI will not be covered.
Regards,
K. SURESH - Miyapur
From India, Hyderabad
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If the employee experienced hike in the salary and his gross salary is past 15000/- then when will he be skipped from the ESIC benefit ??
From India, Hyderabad
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From India, Hyderabad
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As posted above by Mr. Abbas and Mr. Madan Mohan, I would further clarify some points on ESIS. One gets covered under the ESIS if the gross salary is less than or equal to Rs. 15,000/-. In case the salary rises above or equal to Rs. 15,001/- due to any salary revision, increment, etc., he would not get exempted until he has reached the cut-out point (contributory period), i.e., April/October. This means he would still be in the ESIS coverage until the month of April or October, whichever is earlier.
From India, Mumbai
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From India, Mumbai
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Understanding Basic Labor Laws in HR
If you are in the HR stream and working, it is imperative that you put in a little effort to read and understand the basic labor laws. By doing this, you will have a strong foundation in terms of subject knowledge.
Regards,
Vasant Nair
ESI and PF Deductions for Employees
Hello, can anyone tell me when the salary of any employee is ₹14,000 per month, is ESI deducted or not? What is the maximum limit of ESI? Does it also differ from company to company, meaning is it different in IT than in others? Also, please tell me the amount of PF deduction.
From India, Mumbai
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If you are in the HR stream and working, it is imperative that you put in a little effort to read and understand the basic labor laws. By doing this, you will have a strong foundation in terms of subject knowledge.
Regards,
Vasant Nair
ESI and PF Deductions for Employees
Hello, can anyone tell me when the salary of any employee is ₹14,000 per month, is ESI deducted or not? What is the maximum limit of ESI? Does it also differ from company to company, meaning is it different in IT than in others? Also, please tell me the amount of PF deduction.
From India, Mumbai
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Hello, can anyone tell me when the salary of an employee is ₹14,000 per month, is ESI deducted or not? What is the maximum limit of ESI? Does it also differ from company to company, for example, is it different in IT than in other sectors? Also, please inform me about the amount of PF deduction.
ESI and PF Deduction Details
The maximum salary limit to be covered under ESI is ₹15,000, and any amount above ₹15,001 per month will not be covered by ESI. Employee ESI deduction is 1.75%, and Employer ESI contribution is 4.75%. PF is deducted at 12%, and the limit is up to ₹6,500. However, it can exceed if employees wish to contribute more, but typically, it is 12%.
Regards
From India, Delhi
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ESI and PF Deduction Details
The maximum salary limit to be covered under ESI is ₹15,000, and any amount above ₹15,001 per month will not be covered by ESI. Employee ESI deduction is 1.75%, and Employer ESI contribution is 4.75%. PF is deducted at 12%, and the limit is up to ₹6,500. However, it can exceed if employees wish to contribute more, but typically, it is 12%.
Regards
From India, Delhi
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If a person's gross salary, excluding their food allowance and any ex-gratia/incentive payment, is more than ₹15,000 per month (i.e., ₹15,001 and above), then the ESI is not applicable. Food/tea/snacks provided to an employee will not form a part of their salary. Food subsidy and performance-linked compensation are not considered wages under the EPF Act.
Regional Provident Fund Commissioner, T.N. & Pondicherry State Employees' Provident Fund Organisation vs. Wipro Ltd. & Anr. 2009 LLR 816 (Madras H.C.); 2009 LLR 416.
With warm regards,
S. Bhaskar
[Phone Number Removed For Privacy Reasons]
From India, Kumbakonam
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Regional Provident Fund Commissioner, T.N. & Pondicherry State Employees' Provident Fund Organisation vs. Wipro Ltd. & Anr. 2009 LLR 816 (Madras H.C.); 2009 LLR 416.
With warm regards,
S. Bhaskar
[Phone Number Removed For Privacy Reasons]
From India, Kumbakonam
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
SALARY with out PF Deduction.xls
ESI COVERAGE ON 1O EMPLOYEE0104201 1.pdf