rajesh_cpt (n/a) 29 January 2008

ESI Coverage

Sir, We have a staff who has been drawing less than Rs.10000 till Dec 07. This staff has been under ESI coverage. From Jan 08 onwards, the salary has been increased to Rs.12000.

Under this situation, do we need to deduct ESI payment till this Half year is over or we can delete from the list. The employee is stationed at Karnataka.

Please advice.

KRISHNARAJ P R

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3 Replies

Prakash Yedhula (Lawyer) 29 January 2008

[font=""trebuchet ms""] Those who are getting more than 10000/- as a gross salary they will not be covered under the ESIC act. The period of contribution starts from 1 April & 1st October of every year. If Employee is getting 9000/- in the month of April and you incremented his salary in the month of May i.e. more than 10000/- he is eligible for deduction under ESIC up to the 30th September then he will get the exemption.[/font]

Akhil Gupta (Manager-HR) 30 January 2008

Hello Mr. KRISHNARAJ P R

It is correct in case of ESI.

Contribution periood is april-sep and oct-march.

If your salary is below than 10,000 in oct-07, employer will deduct the ESI.

In case you got an increment between oct-march and now you are getting above 10'000 as you are saying even then employer will deduct the contribution till march-2008 as this is a statutory rule however they will stop deducting the same April onwards.