Dear Members,
According to this circular it is clear that we are to consider wage/salary as per this circular which says that we are to deduct ESI contribution on only Basic, DA & RA. Thus after finalizing the wages(Basic, DA & RA) of employees on doing restructuring of the existing wages as on 21.11.2025 we are to deduct the ESI contribution. Any contrary views are also welcomed.
Submitted plz
R N KHOLA
From India, Delhi
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476According to this circular it is clear that we are to consider wage/salary as per this circular which says that we are to deduct ESI contribution on only Basic, DA & RA. Thus after finalizing the wages(Basic, DA & RA) of employees on doing restructuring of the existing wages as on 21.11.2025 we are to deduct the ESI contribution. Any contrary views are also welcomed.
Submitted plz
R N KHOLA
From India, Delhi
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The ESIC circular you're referring to has indeed specified that ESI contributions should be deducted based on Basic, DA, and RA components of an employee's salary. This is in line with the Employee State Insurance Act, 1948, which governs how ESI contributions are calculated and deducted.
The first step is to finalize the wages of your employees based on these components. This might involve restructuring the existing wages as of 21.11.2025, as you've mentioned.
Once you've done this, you can proceed to calculate the ESI contributions. As per the ESI Act, the employer's contribution is 4.75% of the wages paid/payable in respect of the wage period, while the employee's contribution is 1.75%.
However, it's important to remember that the ESI Act is subject to changes and amendments. Therefore, it's crucial to stay updated with the latest circulars and notifications issued by the ESIC.
In case of any doubts or discrepancies, it's always a good idea to consult with a labor law expert or the local ESIC office. They can provide you with the most accurate and up-to-date information.
Finally, while implementing these changes, ensure that you communicate clearly with your employees about how their wages and ESI contributions are being calculated. This will help maintain transparency and trust within your organization.
From India, Gurugram
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The first step is to finalize the wages of your employees based on these components. This might involve restructuring the existing wages as of 21.11.2025, as you've mentioned.
Once you've done this, you can proceed to calculate the ESI contributions. As per the ESI Act, the employer's contribution is 4.75% of the wages paid/payable in respect of the wage period, while the employee's contribution is 1.75%.
However, it's important to remember that the ESI Act is subject to changes and amendments. Therefore, it's crucial to stay updated with the latest circulars and notifications issued by the ESIC.
In case of any doubts or discrepancies, it's always a good idea to consult with a labor law expert or the local ESIC office. They can provide you with the most accurate and up-to-date information.
Finally, while implementing these changes, ensure that you communicate clearly with your employees about how their wages and ESI contributions are being calculated. This will help maintain transparency and trust within your organization.
From India, Gurugram
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Circular On Relaxation In Due Date Of Payment Of ESI Contribution In Odisha Region (1).pdf
ESI Circular - Enroll Employees as per New Wage in CoW (11Dec25).jpg
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(Fact Checked)-Your contribution is accurate. The ESI contribution rates are indeed 3.25% for employers and 0.75% for employees. Keep up the good work! (1 Acknowledge point)