Strange Issue Of ESIC Deduction.

indra1973
hi,
I think there is misconception about the ESIC Rule. As per the ESIC Act, If your monthly Gross Salary is less than 10,000 then you will under ESI Deduction irrespctive of your date of joining and If your monthly Salary Rs.10001 and above you will not be under the ESI Perview, if you join the company in middle of the month and as per your appointment order it clerly states, that your monthly gross Salary is above ESI Wages and there is no question of ESI contribution from your salary.
ESI contribution period as follows
1 April to 30 Septmber
01 october to 31 March
and if the deduction has in between contribution period they can adjusted in next month stating clerical error and they can reimmburse the amount to you. if the contribution is ended, then nothing can be done.only during next contribution you will be exempted from ESI
Regards,
M.K.
anshu_new2006
Thanks for the reply Mr M. K. but my question is a person's monthly gross was below 10000/- and he was covered under ESI act (as per rule), but in the month of March he got promotion and his monthly gross increased to 12000/- with effect from April. Now will he continue contributing in ESI till September (as per the contribution period) or he will stop contributing in ESI from April since his monthly gross has increased to 12000/-
Madhu.T.K
If his salary is increased with effect from April, then he is out of coverage and he neednot contribute till September because right from the commencement of the contribution period, ie, April 1st, his salary has increased. Therefore, he becomes an uncovered employee in this contribution period.
Regards,
Madhu.T.K
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