ESI - employees have got increments and now they are not eligible for ESI. But the ESI amount is deducted

Dear HR professionals, Our employees have got increments and now they are not eligible for ESI. But the ESI amount is deducted from them as their names are not removed from the government list. One of our employees raised a question as to why we are not informing them of the same. I request anyone please review.

Hi,

The ESI contribution period is as below

1st April to 30th September
1st October to 31st March of the next year.

After the commencement of a contribution period, even if the gross salary of an employee exceeds Rs. 21,000 monthly, the employee continues to be covered under ESI scheme till the end of that contribution period and the contribution is deducted on the new salary even if it is above Rs.21,000/-. So for information ESI will be deducted till the end of contribution period irrespective of hike.

If you are the HR of the Organization you may explain the employees as above.

By the by what do you mean by Government list ?

Sorry! That was a verbal mistake I meant about the ESI list.

Thank you.

Mam, do we need to mail this to the employees?

Hi,

Ok got it. It is called typo mistake and not verbal mistake.

If employee count is less no need to email but you can verbally explain.

By the by I'm Mr.Lakshminarayanan.