Esi contribution

THE GROSS SALARY LIMIT FOR THE EMPLOYEE TO BE INCLUDED IN THE ESI BRACKET IS Rs21000. MY QUESTIONS ARE

  1. CAN AN EMPLOYEE WHOSE GROSS EXCEEDS Rs21000 BE INCLUDED IN THE ESI CONTRIBUTION
  2. AN EMPLOYEE WHOSE SALARY WAS LESS THAN Rs 21000 BUT HAS BEEN REVISED AND CROSSES Rs 21000 . CAN HE CONTINUE HIS ESI CONTRIBUTIONS?
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  1. No.
  2. He can continue the ESI contribution till the end of the Contribution period only. Refer this link for Contribution under ESI: https://www.esic.nic.in/contribution
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An employee whose gross emoluments (excluding bonus, OT, leave encashment, gratuity) exceeds Rs.21,000 are not eligible to be covered under the ESI Act.

An employee whose salary enhancement/ appraisals results in exceeding the Rs.21,000 criteria will continue to pay till the next ESI contribution period. The two esi contribution periods are 1st April to 30th Sep and 1st Oct to 31st March.

For instance if an employee earning Rs.20,000 get an salary increase to Rs.22,000 in the month of May. He will continue contributing ESI on the revised salary upto Sep of that same year.

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A post was split to a new topic: Do we need to go for ESI, If the Employee gross salary is 20K and the company is providing health insurance?

Hi sakthi,

Nobody is paid less than 21,000 rs per month.

Regards,
Sheela

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No If the Gross Salary exceeds 21001/- not eligible for ESI

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If there is no ESI contribution or stopped after the employees’ salary crossed 21000, still ESI “Nil return” is to be filed every month?

1.No
2. The ESI contribution has to be continued for the running Contribution period(April to September or October to March)

3 posts were split to a new topic: What if an employee gets a hike WEF 01st April. Do we still have to contribute to ESI till Sep

Hi

ESIC discontinuation is allowed twice a year, One in April and September.

In April if the salary is revised to /above 21k, you can discontinue ESIC contribution

Regards,

Srilatha Hariharan

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A post was split to a new topic: PT for following cities