Hello, Will washing allowance & Over time get consider while checking ESIC deduction criteria? Regards, Anagha
From India, New Delhi
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1From India, New Delhi
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Washing and Overtime Allowance Under ESI Act
Both Washing Allowance and Overtime Allowance form part of "wages" under the ESI Act, 1948. However, when calculating wages exceeding Rs. 15,000 for exemption purposes, the amount of Overtime Allowance is to be ignored. Contributions on overtime are to continue to be paid.
Regards,
From India, Noida
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Both Washing Allowance and Overtime Allowance form part of "wages" under the ESI Act, 1948. However, when calculating wages exceeding Rs. 15,000 for exemption purposes, the amount of Overtime Allowance is to be ignored. Contributions on overtime are to continue to be paid.
Regards,
From India, Noida
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Sir, Thanks for the reply. But I still have some doubts. Considering the overtime part, suppose if someone has a salary of Rs. 15,000 and in April or October (the ESIC criteria checking period) he does overtime, causing him to exceed the ESIC limit of Rs. 15,000.
In this case, should we not consider him for ESIC deduction? If yes, then what will happen in the next month if that employee does not work overtime and his earnings come down below Rs. 15,000 (then he will be eligible for ESIC deduction as per the rule)?
Considering the above case, do we really have to consider overtime while checking the ESIC deduction criteria?
From India, New Delhi
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In this case, should we not consider him for ESIC deduction? If yes, then what will happen in the next month if that employee does not work overtime and his earnings come down below Rs. 15,000 (then he will be eligible for ESIC deduction as per the rule)?
Considering the above case, do we really have to consider overtime while checking the ESIC deduction criteria?
From India, New Delhi
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ESI Act Coverage and Contribution Details
If an employee receives a monthly wage of exactly Rs. 15,000, they will be covered under the ESI Act, 1948, and contributions will be payable. If their wage exceeds Rs. 15,000, for example, if it is Rs. 15,001 per month, then they will not be covered by the said Act. If their wage exceeds Rs. 15,000 during any month except the base months of April and October, they will still be covered, and contributions will be payable until the end of the respective contribution period.
Regarding overtime, if the employee is covered as per the example mentioned above, contributions on overtime will also be payable, regardless of whether adding the overtime amount causes their wage to exceed Rs. 15,000 during any month.
From India, Noida
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If an employee receives a monthly wage of exactly Rs. 15,000, they will be covered under the ESI Act, 1948, and contributions will be payable. If their wage exceeds Rs. 15,000, for example, if it is Rs. 15,001 per month, then they will not be covered by the said Act. If their wage exceeds Rs. 15,000 during any month except the base months of April and October, they will still be covered, and contributions will be payable until the end of the respective contribution period.
Regarding overtime, if the employee is covered as per the example mentioned above, contributions on overtime will also be payable, regardless of whether adding the overtime amount causes their wage to exceed Rs. 15,000 during any month.
From India, Noida
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ESIC Act 1948 .Doc
ESIC Act 1948.ppt
Form No. 37 Under ESIC act.pdf