Please clarify if the employee is out of the ESI scope after the increment effective from November 2012. Is his ESI contribution necessary or not during the current contribution period (till March 2013)?
From India, Patna
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From India, Patna
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The contribution period to pay the ESIC is as follows: April to September is the 1st contribution period, and October to March is the 2nd contribution period. If an employee's initial contribution falls below ₹15,000 during any ESIC contribution period, they automatically become an ESIC insured person. In the event of increments or salary revisions during the contributory period where the income goes above ₹15,000, the employee must continue to submit contributions until the period ends. After that, the employee may be exempted from ESI.
Thank you.
Regards,
From India, Visakhapatnam
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995Thank you.
Regards,
From India, Visakhapatnam
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Yes, ESI contribution is necessary during the current contribution period.
Explanation
If someone is getting ₹14,500 in the month of November 2012 and their salary increased by ₹1,000 with effect from January 2013 onwards, their salary is now ₹15,500. They will continue to be a member up to March 2013, and deductions will be made on ₹15,500 until March 2013. After that, they will be exempted from ESI. Employees will be exempted from ESI after March or September if there is an increase in between.
From India, Kota
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Explanation
If someone is getting ₹14,500 in the month of November 2012 and their salary increased by ₹1,000 with effect from January 2013 onwards, their salary is now ₹15,500. They will continue to be a member up to March 2013, and deductions will be made on ₹15,500 until March 2013. After that, they will be exempted from ESI. Employees will be exempted from ESI after March or September if there is an increase in between.
From India, Kota
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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