Hi, I want to know if an employee has a Gross Salary of 15000/- and he also gets OT of Rs. 18000/-, the total gross becomes 33000/-. Is he eligible for the ESI or what ESI amount should be deducted from his salary? If not, then what would be the upper limit of deducting ESI amount if a salary is with OT.

Please let me know if you need any further information.

From India, Mohali
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Aks17
119

Hi,

For ESI calculations, overtime is not taken into account, and it remains at 21000 rupees. Overtime is not a guaranteed income and is therefore excluded from the definition of wage under the ESI Act.

Thanks and Regards

From India, Hyderabad
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Ceiling for ESIC is Rs. 21000/- which is supposed to be the salary without incentives / overtime thus in your case the employee is entitled for ESIC.

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