Is it possible to stop ESI deduction in any scenario?

Dear members,

Recently we got requests from employees to stop deducting ESI. Since last pandemic year employees brought various health and medical policies . So they dont want the addition deductions. Is this correct as per rules?

Please advise.

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Dear Manasa,

I am sharing…

No, it cannot be left with the choice of employees and esi rule does not say anything like that.

Need to comply with statutory rule.

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No, you cannot stop ESIC unless & until the employee is out of coverage i.e. Gross above 21000.

Also, once once the employee is above the ceiling, contribution cannot be discontinue immd. Contribution can be discontinued i.e. he can be removed from coverage at the start of contribution period only.

CONTRIBUTION PERIOD
1-APRIL TO 30-SEP
1-OCT TO 31-MAR

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HI, No one can stop deducting ESI if an employees comes under ESI wage slab. This is as pee the ESI Act. You cannot even stop ESI immediately if there is a salary raise in middle of the contribution period, one has to complete the contribution and then update in the portal for going out of ESI.

So, you should deny employee request by making them understand ESI Act.

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