ESi calculated on basic salary?

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1

Hi,

Is ESI calculated on basic or gross salary?
Has the contribution rates changed recently?

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2
APPLICABILITY FACTORY OR ESTABLISHMENT WITH 10 OR MORE PERSON HAVE SALARY UPTO 21000
EMPLOYEE CONTRIBUTION 0.75% OF SALARY
EMPLOYER CONTRIBUTION 3.25% OF SALARY
CONTRIBUTION PERIOD 1-APRIL TO 30-SEP
1-OCT TO 31-MAR
BENEFIT PERIOD 1-JAN TO 30-JUNE
1-JULY TO 31-DE
SALARY LIMIT EMPLOYEE WHOSE SALARY IS UPTO 21000 ARE COVERED
IF THE WAGES OF AN EMPLOYEE (EXCLUDING REMUNERATION FOR OVERTIME WORK) EXCEEDS THE WAGE LIMIT PRESCRIBED BY THE CENTRAL GOVERNMENT AFTER START OF CONTRIBUTION PERIOD, HE CONTINUES TO BE AN EMPLOYEE TILL THE END OF THAT CONTRIBUTION PERIOD AND THE CONTRIBUTION IS TO BE DEDUCTED AND PAID ON THE TOTAL WAGES EARNED BY HIM.
WAGES FOR CONTRIBUTION BASIC PAY,/WAGES/SALARY;
D.A/ HRA/ CCA/ OVERTIME/ OFFICIATING ALLOWANCE/ NIGHT SHIFT ALLOWANCE/ EFFICIENCY ALLOWANCE/ HEAT, GAS, DUST ALLOWANCE/ EDUCATION ALLOWANCE/ FOOD & TEA ALLOWANCE/ CONVEYANCE ALLOWANCE; OVERTIME WAGES (BUT NOT TO BE TAKEN INTO ACCOUNT FOR DETERMINING THE COVERAGE).
WAGES/ SALARY/ PAY FOR WEEKLY OFF AND PUBLIC HOLIDAYS;
COMMISSION PAID TO SALES STAFF;
SUBSISTENCE ALLOWANCE PAID TO AN EMPLOYEE DURING THE PERIOD OF SUSPENSION;
ATTENDANCE BONUS OR INCENTIVE OR EXGRATIA IN LIEU OF ATTENDANCE BONUS OR PRODUCTION INCENTIVE;
REGULAR HONORARIUM OR SALARY OR REMUNERATION PAID TO A DIRECTOR;
COLLECTION BHATTA PAID TO RUNNING STAFF. PRODUCTION INCENTIVE, BONUS OTHER THAN STATUTORY BONUS, NIGHT SHIFT. HEAT, GAS & DUST ALLOWANCE, MEAL/FOOD ALLOWANCE.
ACTUAL PAYMENTS MADE TOWARDS LEAVE SALARY, LAY OFF COMPENSATION, OR WAGES FOR STRIKE PERIOD.
ANY OTHER REMUNERATION PAID OR PAYABLE IN CASH TO AN EMPLOYEE IF THE TERMS OF CONTRACT OF EMPLOYMENT, EXPRESSED OR IMPLIED WERE FULFILLED.
EMPLOYER ESIC CODE 31–00–123456–000–0001.
31 - STANDS FOR REGION WHERE THE COMPANY/ESTABLISHMENT IS SITUATED. LIKE 31 IS FOR MUMBAI, 52 IS FOR HYDERABAD.
00 - STANDS FOR MAIN REGION CODE. IT IS USED IN CASE WHERE COMPANY’S HEAD OFFICE IS SITUATED IN SOME OTHER REGION. SUPPOSE, IF ANY COMPANY IS SITUATED IN MUMBAI AND HAVING HO AT HYDERABAD, IT’S CODE WILL BE LIKE 31–52---*.
123456 - IT’S COMPANY’S​ UNIQUE CODE, IT CAN HAVE MAXIMUM 6 DIGITS.
000 - THESE 3 DIGITS DENOTES NUMBER OF BRANCHES. IF COMPANY HAVE MORE THAN BRANCHES, SUBSEQUENT BRANCHES WILL BE LIKE 001, 002 AND SO ON.
0000 - THESE 4 DIGITS DEPENDS UPON THE TYPE OF BUSINESS ACTIVITY IN WHICH COMPANY IS INVOLVED. LIKE FOR SERVICE PROVIDER, IT WILL BE 0001. SIMILARLY, FOR RESTAURANTS, IT WILL BE 1102.
IP NUMBER 10 DIGIT UNIQUE INSURANCE NUMBER WHICH CAN BE USED AT DIFFERENT ORGANISATIONS FOR CONTINUING BENEFITS
MEMBER ENROLMENT EMPLOYER IS REQUIRED TO GENERATE IP OF EMPLOYEE WITHIN 10 DAYS OF HIS/HER JOINING
FORMS FORM 1 A - EMPLOYER REGISTRATION FORM
FORM 10 - CLAIM FOR SICKNESS/TEMPORARY DISABLEMENT/ MATERNITY
FORM 11 - ACCIDENT BOOK
FORM 15 - CLAIM FOR DEPENDENT BENEFIT
FORM 37 - CERTIFICATE OF CONTINUING EMPLOYMENT/RE-EMPLOYMENT
PECHAN CARD
BENEFITS MEDICAL BENEFIT - MEDICAL EXPENSES FROM DAY ONE
MATERNITY BENEFIT - FULL WAGES FOR 26 WEEKS
TEMPORARY DISABLEMENT BENEFIT - 90% OF AVERAGE DAILY WAGES;ELIGIBLE FROM DAY 1 OF JOININGL; IF SPELL LASTS FOR LESS THAN 3 DAYS THEN SICKNESS BENEFIT WILL BE PAID
DEPENDENT BENEFIT
FUNERAL EXPENSES - RS 15000
SICKNESS BENEFIT - 70% OF AVERAGE DAILY WAGES FOR 91 DAYS DURING 2 CONSECUTIVE BENEFIT PERIOD; SHOULD HAVE PAID CONTRIBUTION FOR NOT LESS THAN 78 DAYS DURING THE CORRESPONDING CONTRIBUTION PERIOD
CHALLAN & PAYMENT 15TH OF NEXT MONTH
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3

ESI has to deduct from Gross salary. Washing allowance can be excluded from Gross salary while calculating ESI. Washing allowance cannot be more than 1% of the gross.

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4

ESI is calculated on Gross Salary.

New ESIC rate wef 01.07.2019

Employer Contribution - 3.25%
Employee Contribution - .75%

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5

Hi Prabha,

ESIC is always calculated on gross salary and the ceiling is gross Rs. 21000/-

Employee contribution: 0.75%
Employer contribution: 3.25%

Total 4%

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