Remittance of ESI contribution above 21K may lead to benefit rejection when an employee goes for ESI benefits, including Maternity benefit.
We have employees who earn 19K and 20K as fixed gross earnings, but due to production-related incentives, overtime wages, and night shift allowances, which are not standard every month and are paid based on certain criteria above the fixed gross.
This is impacting many employees as their payable gross crosses 21K (fixed and additional earnings), resulting in the clear rejection of any ESI benefits even after providing all the evidence and explanation with the last hike letter/appointment letter CTC + one-time component breakup.
However, it seems there is an option for a specific category to add a part of ESI above 21K that you need to check.