In May, the staff's salary was increased to 15,000/-. However, this increment should have been effective from the month of April so that they would have automatically contributed to ESIC for the month of April. In the following month, their salary was increased to 15,000/-. In this scenario, do we have to wait for the next 6 months for their contributions to stop, or is there another way to halt the contributions?

Regards,
RAM

From India, Hyderabad
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If once the contribution for the first month of next C.P. is deducted/ommitted, then it will be deducted till the last month of C.P......
From India, New Delhi
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If I am not wrong, the employees who are drawing Rs. 15,000/- are also covered by ESI. If they cross Rs. 15,000/-, only then shall they be out of ESI. As mentioned by our other friends, if an employee exceeds the ESI wage limit during the contribution period, their coverage and deduction of contributions should continue until the end of the contribution period. However, when it comes to coverage, it should take immediate effect.

Regards,
Kamesh

From India, Hyderabad
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If an employee is under the purview of ESI during April and subsequently, due to wage revision or other reasons, the wage crosses Rs. 15,000, he shall continue to be under ESI until the end of the contribution period, i.e., September. Our other friends have given excellent examples.

Regards,
K. Ranga Raju

From India, Hyderabad
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Dear sir’s, After internet processing in ESIC can in the current contribution period April-2011 to sep.2011 required return or not required. Thanks & Regards, samai singh.
From India, Lucknow
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once the esic contribution has been made , it will continue till the contribution period end.
From India, Mumbai
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I have one confusion regarding the same. Suppose an employee's salary increases from 15,000 to 18,000 in April. Do we need to contribute the ESI amount up to September, and should we calculate based on 15,000 or 18,000?
From India, Pune
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Dear Mr. Abhishek, The point is very clear. There are two contribution periods: April to September and October to March. If the salary increases from 15,000 to 18,000 w.e.f. 1st April or 1st October, the employees will come out of the purview of ESI. In case an employee's salary increases w.e.f. May onwards, he shall continue to be under ESI only.

Hope your query is cleared.

With Best Regards,

K. RANGA RAJU

From India, Hyderabad
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Dear Abhishek You have to deduct ESI contribution on whole of the revised gross earnings. Regards RANGA RAJU
From India, Hyderabad
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