hi,
One of our employee joined the company in Dec 2012. His previous organization has deducted his ESI upto Nov 2012. Currently his salary in our company in beyond ESI limits. Please advise whether we need to deduct his ESI in December 2012 salary.
Regards,
Sivajith S.
From India, Mumbai
5One of our employee joined the company in Dec 2012. His previous organization has deducted his ESI upto Nov 2012. Currently his salary in our company in beyond ESI limits. Please advise whether we need to deduct his ESI in December 2012 salary.
Regards,
Sivajith S.
From India, Mumbai
Dear Sivajith,
You should not deduct ESI if the employee salary is more than Rs.15,000. The employee is new so you don't have to deduct his ESI contribution since his salary is more than the ESI limits.
You have raised this doubt because in a contribution period eg. Oct-Mar or Apr - Sep if the employee is covered under ESI and if his salary is increased above Rs.15000/- in the mid of the contribution period, you have to pay the ESI contribution till the end of the contribution period. But this is applicable only to your company employee who is covered under ESI.
If the new joinee salary is above Rs.15000/- then you dont have to contribute for the employee.
From India, Mumbai
You should not deduct ESI if the employee salary is more than Rs.15,000. The employee is new so you don't have to deduct his ESI contribution since his salary is more than the ESI limits.
You have raised this doubt because in a contribution period eg. Oct-Mar or Apr - Sep if the employee is covered under ESI and if his salary is increased above Rs.15000/- in the mid of the contribution period, you have to pay the ESI contribution till the end of the contribution period. But this is applicable only to your company employee who is covered under ESI.
If the new joinee salary is above Rs.15000/- then you dont have to contribute for the employee.
From India, Mumbai
Hi.. Mr. Shenbagarajan Sir I have a doubt on which you have shared regarding ESI Contribution. If employee getting more than 15000/- as net salary there is not required to contribute?
From India, Bangalore
From India, Bangalore
I understand that once the concerened employee came under the
coverage of esic, his esi contribution has to be continued till the
End of period october-march or apr-sept, as the case may be, even if his
gross salary exceeds 15000 pm. However, in case the employee has been alloted
A new esi number on new joining and his salary is above 15000 on the day of new joining
He will not come under esi.
coverage of esic, his esi contribution has to be continued till the
End of period october-march or apr-sept, as the case may be, even if his
gross salary exceeds 15000 pm. However, in case the employee has been alloted
A new esi number on new joining and his salary is above 15000 on the day of new joining
He will not come under esi.
Sivajith S.
Hi,
You should not deduct ESI contribution if employee salary is more than Rs.15000/- for new joined employee only. But as per ESI Act if existing employee salary is increased above Rs. 15000/- from the middle of the contribution period, you have to pay the contribution upto end of contribution period.
Regards
B.Ram
From India
Hi,
You should not deduct ESI contribution if employee salary is more than Rs.15000/- for new joined employee only. But as per ESI Act if existing employee salary is increased above Rs. 15000/- from the middle of the contribution period, you have to pay the contribution upto end of contribution period.
Regards
B.Ram
From India
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
ESI deduction.doc
ESI contribution rates lowering.pdf