Dear All,
In my company, we calculate monthly wages on a /26 basis. However, I have a doubt regarding the ESI contribution for this month. One of the employees worked for 28 days, and their salary exceeds 21000. How should I calculate their ESI contribution?
Please advise me on this matter. Thank you.
From India, Visakhapatnam
Acknowledge(0)
Amend(0)
2In my company, we calculate monthly wages on a /26 basis. However, I have a doubt regarding the ESI contribution for this month. One of the employees worked for 28 days, and their salary exceeds 21000. How should I calculate their ESI contribution?
Please advise me on this matter. Thank you.
From India, Visakhapatnam
Acknowledge(0)Amend(0)
If the total earnings, excluding overtime wages, are not more than Rs. 21,000, he should be covered under ESI. If you pay for only 26 days, but for one employee, you have paid for 28 days, it should be regarded as overtime payment or payment for two days in excess of normal working days in a month. If the notional wages for 26 days are not more than Rs. 21,000, cover him under ESI and deduct and contribute ESI on the total earnings (including the payments for overtime or two days extra worked).
From India, Kannur
Acknowledge(1)
Amend(0)
From India, Kannur
Acknowledge(1)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.
ESI 42 Days Contribution Relaxation Period - March 2020.pdf
Salary working format.xls