Should ESI contribution be deducted for 20K salary and variable overtime pay?

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1

Employee’s salary is Rs 20000 and overtime amount is Rs 800-1200( varies month on month).

  1. Should ESI contribution will be deducted or not?
  2. Is the limit of 21000 exceeding in this case?
  3. When overtime amount is 800, What amount ESI will be deducted?
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2

Hi,

  1. Should ESI contribution will be deducted or not? Yes, it should be deducted
  2. Is the limit of 21000 exceeding in this case? No, it is not
  3. When overtime amount is 800, What amount ESI will be deducted? ESIC should be paid on Overtime amount also.
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3

Dear Team,

  • ESIC deduction limit 21,000 per month (Rs. 25,000 for employees with disability).
  • ESIC decision based on Employee Gross i.e. fixed salary.
  • If Eligible, ESIC will be deducted on net gross i.e. including OT.
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4

Employee’s salary is Rs 20000 and overtime amount is Rs 800-1200( varies
month on month).

  • SHOULD ESI CONTRIBUTION WILL BE DEDUCTED OR
    NOT? SHOULD BE DEDUCTED
  • IS THE LIMIT OF 21000 EXCEEDING IN THIS
    CASE? ESIC DEDUCTION LOGIC BASED ON FIXED GROSS AND NOT EARNED GROSS

WHEN OVERTIME AMOUNT IS 800, WHAT AMOUNT ESI WILL BE DEDUCTED? IF
ELIGABLE, ESIC WILL BE DEDCUTED ON EARNED GROSS.

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5

Hi

Yes ESI should be deducted for Salary 20K even if the overtime amount varies month on month.

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