Query regarding ESI
anshul sangal
(Querist) 06 June 2009
This query is : Resolved
Sir i have two query regarding ESI.
First is by whom contribution is paid whether it is immediate employer or principal employer?
What is mean by contribution period under ESI
A V Vishal
(Expert) 06 June 2009
Dear Anshul,
In the first instance the Principal Employer is to pay employers' share of contribution in respect of every employee whether employed directly or through immediate employer. The employees' share may thereafter, be recovered by making deduction from their wages for the wage period for which contribution is, however is payable. No such deduction may be made from any wages other than those relating to the period in respect in which contribution is payable.
There are two contribution periods of six months duration each in a year, in respect of an insured employee, with corresponding benefit period of six months each.
In case a person becomes an employee within the meaning of the Act for the first time, the first contribution period will commence from the date he enters into insurable employment for the first time in the contribution period current on that day and his corresponding benefit period will commence on the expiry of nine months from the date of such employment.
