Dear members,
Do the ESI rules specify that once a ESI deduction is made from an employees salary, you have to mandatorily deduct it for six months? The reason for my query - we have recently announced increments at our workplace. This should ideally have been done end of march but was done End April. Hence we paid the ESI amount based on previous years salary. However, after the increment a few employees have crossed the ESI threshhold and are not liable for this. However, we have been informed that we need to deduct the ESI amount for atleast six months before we can stop.
Can any of you throw more light on this?
Thanks and regards
Do the ESI rules specify that once a ESI deduction is made from an employees salary, you have to mandatorily deduct it for six months? The reason for my query - we have recently announced increments at our workplace. This should ideally have been done end of march but was done End April. Hence we paid the ESI amount based on previous years salary. However, after the increment a few employees have crossed the ESI threshhold and are not liable for this. However, we have been informed that we need to deduct the ESI amount for atleast six months before we can stop.
Can any of you throw more light on this?
Thanks and regards