Hi,
We all know that the esi ceiling limit is Rs.10,000/- per month. I have a doubt in this regard, In case of persons paid wages on a daily basis and in case if his daily wage is fixed at Rs.390/-perday, Is ESI to be recovered for such case.
rgds
Anand
From India, Madras
2We all know that the esi ceiling limit is Rs.10,000/- per month. I have a doubt in this regard, In case of persons paid wages on a daily basis and in case if his daily wage is fixed at Rs.390/-perday, Is ESI to be recovered for such case.
rgds
Anand
From India, Madras
Hi,
On daily wages the esi is not applicable when an empl. drawing a salary less than Rs. 40 a day..above which is covered in ESIC and employer and employee must contribute for the same.
In your case, the gross salary of this empl. is more than Rs. 10000.
with best regards,
Umesh
(welcomeumesh@yahoo.com)
From India, Delhi
On daily wages the esi is not applicable when an empl. drawing a salary less than Rs. 40 a day..above which is covered in ESIC and employer and employee must contribute for the same.
In your case, the gross salary of this empl. is more than Rs. 10000.
with best regards,
Umesh
(welcomeumesh@yahoo.com)
From India, Delhi
Hi
any daily wager getting less than or equal to Rs 50 a day is not required to pay the contribution in his/her behalf the employer pays. anything more than 50 comes under employee cotribution.
Hence in your case the wage is much more than so, he has to pay the contribution.
IN case of any further doubt plz revert back.
Pradeep Mohapatra
HR
ABC INDIA LTD.
any daily wager getting less than or equal to Rs 50 a day is not required to pay the contribution in his/her behalf the employer pays. anything more than 50 comes under employee cotribution.
Hence in your case the wage is much more than so, he has to pay the contribution.
IN case of any further doubt plz revert back.
Pradeep Mohapatra
HR
ABC INDIA LTD.
Dear Anand,
In the ESI scheme, the contribution period is split into two - APril to September and OCtober to March. This is the period for which the half yearly returns needs to be sent to the ESI Corporation.
Hence for an employee - if deduction is going on and the salary limit crosses the Rs.10,000 limit, you will have to continue the ESI contributions till the end of the contribution period. For example, if an employee's salary is Rs.9,000 during April,May, June - and gets revised to Rs.11,500 from July - then the ESI deductions on the revised salary needs to be done till the end of the current contribution period - that is till September. Similary for the other contribution period also.
Hope this information is of use.
Regards
P.Arun Kumar
From India, Bangalore
In the ESI scheme, the contribution period is split into two - APril to September and OCtober to March. This is the period for which the half yearly returns needs to be sent to the ESI Corporation.
Hence for an employee - if deduction is going on and the salary limit crosses the Rs.10,000 limit, you will have to continue the ESI contributions till the end of the contribution period. For example, if an employee's salary is Rs.9,000 during April,May, June - and gets revised to Rs.11,500 from July - then the ESI deductions on the revised salary needs to be done till the end of the current contribution period - that is till September. Similary for the other contribution period also.
Hope this information is of use.
Regards
P.Arun Kumar
From India, Bangalore
Dear Anand,
Though the employee is paid on a daily rate of wages, you need to convert the actual salary on monthly basis. Rs.390 X 26days = Rs.10140/- (more tha 10,000) hence exempted from ESI contribution. If the no. of days is less than 26, he will still remain as an exempted employee.
Rgds,
Suresh Ramalingam
From India, Mumbai
Though the employee is paid on a daily rate of wages, you need to convert the actual salary on monthly basis. Rs.390 X 26days = Rs.10140/- (more tha 10,000) hence exempted from ESI contribution. If the no. of days is less than 26, he will still remain as an exempted employee.
Rgds,
Suresh Ramalingam
From India, Mumbai
Hi Anand,
In case of an employee drawing a monthly pay, we term his salary as Gross monthly salary which means an employee works for 26 days and his salary is say Rs. 15000 and he is out of ESI.
In another case where employee is paid on a daily basis his gross monthly salary will be calculated on the above basis.
In your query,. the salary of that workman is more than Rs. 10000 thus you need to contribute towards ESI..
Also, workman drawing salary less than Rs. 50 per day, the employee need not contribute towards ESI from his pocket of share, instead ESI provides them benefits from of cost.
In my last Organisation, paying daily wages was a routine and employee never wanted to contribute towards ESI from their pocket..one day finally we called up many ESI people to give live examples for accidents and benefits covered to these employees...ESI people demonstrated it well and later on me and my other employees in HR department organised a 1-1 meeting and cleared every single doubt raised by them...
We need to increase the awareness of the ESI benefits to our employees..
with warm regards,
Umesh
(umesh.chaudhary@ril.com)
From India, Delhi
In case of an employee drawing a monthly pay, we term his salary as Gross monthly salary which means an employee works for 26 days and his salary is say Rs. 15000 and he is out of ESI.
In another case where employee is paid on a daily basis his gross monthly salary will be calculated on the above basis.
In your query,. the salary of that workman is more than Rs. 10000 thus you need to contribute towards ESI..
Also, workman drawing salary less than Rs. 50 per day, the employee need not contribute towards ESI from his pocket of share, instead ESI provides them benefits from of cost.
In my last Organisation, paying daily wages was a routine and employee never wanted to contribute towards ESI from their pocket..one day finally we called up many ESI people to give live examples for accidents and benefits covered to these employees...ESI people demonstrated it well and later on me and my other employees in HR department organised a 1-1 meeting and cleared every single doubt raised by them...
We need to increase the awareness of the ESI benefits to our employees..
with warm regards,
Umesh
(umesh.chaudhary@ril.com)
From India, Delhi
In your query,. the salary of that workman is more than Rs. 10000 thus you need to contribute towards ESI..
couldn't understand that Mr.Umesh.Plz clarify..even though the salary is more than Rs. 10000/- still contribution has to be made to the ESI???In the Act the limit is Rs. 10000/-
From India
couldn't understand that Mr.Umesh.Plz clarify..even though the salary is more than Rs. 10000/- still contribution has to be made to the ESI???In the Act the limit is Rs. 10000/-
From India
Dear HR Colleagues
Now that the ESI ceiling has been increased from 10 K to 15 K, can somebody tell me what are the components that constitute the "salary" as per ESI RULES ???????????????????
Also, as our company gives Sodehxo coupons (do they come under food coupons as mentioned in the ESI Rules) and Rs.1200/- every month towards Medical reimbursement, can somebody advise whether these can also be taken into "salary"?
V Chithranath
Now that the ESI ceiling has been increased from 10 K to 15 K, can somebody tell me what are the components that constitute the "salary" as per ESI RULES ???????????????????
Also, as our company gives Sodehxo coupons (do they come under food coupons as mentioned in the ESI Rules) and Rs.1200/- every month towards Medical reimbursement, can somebody advise whether these can also be taken into "salary"?
V Chithranath
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ESI NOTIFICATION CEILING LIMIT 10000 TO 15000 w.e.f.1-05-2010 .doc
ESI CEILING REVISED.jpg
NOTICE GO 4 ESI LIMIT 15000[1].pdf