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

**URL:** <https://community.greythr.com/t/should-esi-contribution-be-deducted-for-20k-salary-and-variable-overtime-pay/4622>\
**Category:** Ask the Community\
**Tags:** esic\
**Created:** [April 12, 2022, 10:23am UTC](https://community.greythr.com/t/should-esi-contribution-be-deducted-for-20k-salary-and-variable-overtime-pay/4622 "2022-04-12T10:23:06Z")\
**Posts on this page:** 5\
**Page:** 1

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**Author:** ![ManasaRP](https://avatars.discourse-cdn.com/v4/letter/m/ecd19e/32.png) [@ManasaRP](https://community.greythr.com/u/ManasaRP)\
**Post date:** [April 12, 2022, 10:23am UTC](https://community.greythr.com/t/should-esi-contribution-be-deducted-for-20k-salary-and-variable-overtime-pay/4622/1 "2022-04-12T10:23:06Z")

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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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**Author:** ![Deepti](https://avatars.discourse-cdn.com/v4/letter/d/ee7513/32.png) [@Deepti](https://community.greythr.com/u/Deepti)\
**Post date:** [April 12, 2022, 10:56am UTC](https://community.greythr.com/t/should-esi-contribution-be-deducted-for-20k-salary-and-variable-overtime-pay/4622/2 "2022-04-12T10:56:16Z")

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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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**Author:** ![ranjan.pujari](https://avatars.discourse-cdn.com/v4/letter/r/779978/32.png) [@ranjan.pujari](https://community.greythr.com/u/ranjan.pujari)\
**Post date:** [April 12, 2022, 11:04am UTC](https://community.greythr.com/t/should-esi-contribution-be-deducted-for-20k-salary-and-variable-overtime-pay/4622/3 "2022-04-12T11:04:20Z")

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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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**Author:** ![ranjan.pujari](https://avatars.discourse-cdn.com/v4/letter/r/779978/32.png) [@ranjan.pujari](https://community.greythr.com/u/ranjan.pujari)\
**Post date:** [April 12, 2022, 11:05am UTC](https://community.greythr.com/t/should-esi-contribution-be-deducted-for-20k-salary-and-variable-overtime-pay/4622/4 "2022-04-12T11:05:10Z")

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> 

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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**Author:** ![C0025](https://avatars.discourse-cdn.com/v4/letter/c/ecccb3/32.png) [@C0025](https://community.greythr.com/u/C0025)\
**Post date:** [April 12, 2022, 11:12am UTC](https://community.greythr.com/t/should-esi-contribution-be-deducted-for-20k-salary-and-variable-overtime-pay/4622/5 "2022-04-12T11:12:43Z")

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Hi

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