ok thanks 21,000 (w.e.f. factories/establishments mentioned above in the implemented areas and drawing wages (excluding overtime) not exceeding Rs.15, 000/- per month are covered under the Act. ESI should be deducted since OT should be considered for ESI calculation and not for determining ESI eligibility. You cannot opt out of ESI if your salary is Rs 15,000. Provident Fund - Form 19 & 10c - Pdf Download, Pf Reauthorization Form To Get The Refund ? For the contribution period 1st April to 30 September, the corresponding benefit period is 1st January to 30th June of the year following. Please sir confirm this as it will be a great help for me. Points to Remember. There are some advantages to the open office with more interactions with people who are not in the next cube or office, but the lack of a desk, space for your stuff, and noise is very distracting. My gross salary were 18533/- & after effect of new ESIC act it has gone below to 17693/-. Kindly check with your HR team in this regard. 924.00 Employee share and 924.00 employer share, what is my gross salary for esic deduction i think it should be 13152.00 for esic deduction please clear my confusion. In the matter of the S. Palanivel v. Deputy Commissioner of Labour, Salem, [M.A. Can you clarify me why they are deducting? Hi a. I am also facing same problem. To receive this credit, you must file an income tax and benefit return every year, even if you did not receive income in the year. Though my increment is effective from April. Total 401k balance is $57k; $6k in a Roth and $52k in company match that is in a Traditional account. Is it true ? You cannot opt out of ESI since there is no provision in law which exempts you from ESI just because you are covered by any other insurance policy. Hi, Gautam….If my total ctc is 15000 then ESIC deduction is mandatory as per govn rule. In March-2017 my Gross salary is 20000 rs. In addition, can those over the age of 60 years contribute labor pension? Since your monthly salary is within the ESI wage ceiling, there should be ESI deduction on your salary. Since the pay structure change has been effected by your organization, kindly check with them on the difference between “Other” and “Deputation” Allowance. As on 01.08.2016, there are 13 members in an establishment out of which 6 drawing salary above 15000. You can simply stop contribution from the next contribution period onwards. if a company pays for medical insurance for employees and their families who are drawing below 15000/month should they enroll for ESI? and I am mail them for refund my deducted amount which wrongly done. Our company Adecco C/o.Cipla ltd. is going to change “Other Allowance” to Deputation Allowance. My company is in rajasthan. How this is possible ?? Once you are out of the ESI coverage, you cannot extend the same. Sir I was working with an organisation for almost 3 years. Kindly suggest. Your HR head is correct in saying this. 16th December 2013 From India , Madras I have left my job before six months and joined new company with current salary Rs.16000/-, so i want to continue my ESI Card, is it possible to continue my ESI card from other source. No need to deduct ESI. Thanks you Soo Much For this. As per the Income Tax rules, organizations should deduct tax each month at the average rate and not wait until the end of the year to start deducting tax. Can you tell me . What is the existing ceiling wage limit for coverage under ESI Act ( at present) ? If salary is 3000 is he/she eligible for pf and esi ?,please clarify. Thanks. of the ESI Corporation is located at Delhi and has 58 field offices such as 23 If you fall in the ESI net, your ESI should then be calculated. Employees with salary less than or equal to Rs 15,000 should be covered under ESI. The Employees* State Insurance Act (ESI Act) was enacted with the object of introducing a scheme of health insurance for industrial workers. how it will be. We started deducting ESI when we crossed 10 employees formula ( including two directors) from June 2014. I am asking this as I am confuse that i am not opting for PF then is there any ruling for monthly taxation if one not opting for PF so deduction of income tax will be monthly or total tax will deduct at the end of FY. If I don’t want it,then what will be the procedure. We are unable to understand your question. You may have to register for PF. In one of its publications, the ESI department has cleared the air on this issue. ESI is calculated on the gross pay (after excluding certain heads specifically exempted as per ESI rules). If the ESI wage goes above Rs 15,000 before the next contribution period, there will be no ESI deduction during the next contribution period. Example: What if Actual Gross salary is say Rs 17000 but because if LWP the Earned Gross salary becomes Rs 14000. The ESI contribution can be stopped only after March or September contribution. There is no rule which specifies what percentage of gross the Basic pay should be. The last contribution should be for July 2016. sir mine ctc is 17000/- and in hand will be 14190/- is i am able for ESI. Washing allowance for livery; Conveyance Amount towards reimbursement for duty related journey. Kindly check with them. PF has nothing to do with the timing of tax deduction. 2. Regards, Shweta Singh 19th … pls suggest me any option. ESI should be calculated on ESI wages for which certain heads are included and certain heads are excluded. Should be calculated on gross pay after reducing the loss of pay amount. Updated: 21 Sep 2013, 01:41 PM IST Prashant K. Nanda. Dear Neha, After retirement if the person works with principal employer then PF & ESI deduction is depends on terms & conditions of the employment. I want to know when an employee is getting his salary above the esi threshod, whether he is entitled for any other medical benifit from the employer. They said me that we have to check but we are not sure. Dear Sir, An individual who is employed in a non-seasonal factory that has more than 10 employees. The salary of one of my employee is Rs 20,000 and his overtime comes to about Rs. Siddharth. HRA 3000 Total (B) 1563 any solution on this. there is nothing in writing regarding this new rule. For example, if an employee receives Rs 17,000 including overtime, ESI should be calculated on Rs 17,000 and not on Rs 15,000. sir, In addition, the number and scale of tax rebates applicable during the next two years undermine the effectiveness of the carbon tax system by offering significant rebates (from 60% to 95%) to most of the industries that are in fact the heaviest carbon emitters. Please help me out. But the problem is that i don’t want to stop the contribution for that employee even in next contribution period…so i asked whether there is a way to continue the contribution. 5,00,000 Nil 23,000/- whether he will be liable for ESIC deduction. If the ESI wage goes above Rs 15,000 in the middle of the next contribution period, ESI deduction should continue until the end of the contribution period. Please note that the gross pay and the ESI wages may not be the same since some of the heads of pay may have to be left out for the purpose of ESI wage calculation. MY SAL IS 16200 SO CAN U TEL ME M I LIABLE TO GET ESIC & HOW MUCH & HOW. Calculte on my total earning. kindly ensure me. Say if an IP quits his job in the month of August, should we pay his contribution till September? In pay slip basic salary shows 7200.00. Should we deduct and pay employee / employer contribution with respect to an insured person if the member leaves in the middle of the contribution period. Let’s dig further to know the applicability of professional tax, the states where such tax is applicable, and how RazorpayX Payroll simplifies it for businesses. 5,00,000: 5%: 5%: Rs. MB A 1200 Hi I am started working with one startup company. what I eligible for esic facility. The Hqrs. Unlike TDS, EPF and ESI, PT is levied by the respective state governments. Kindly inform us whether the ESI deduction exemption is inclusive of overtime or not, Please provide us the detail of salary component to be considered for exemption. Individuals within the age of 60 years which includes residents as well as non-residents. Good suggestion. Dear Gautham, 18000 before esic new rule and from janurary its going to be deducted and was getting rs. ESI SCHEME . 2. You will continue with ESI in the next half-year since the employee will continue to be under ESI on account of his salary remaining at Rs 15,000. Help me with your reply. In other words, payment of MA is optional. Is the establishment coverable under ESI Act? (Basic will be more then 15000). NS Viswanathan. ESI is typically calculated on the gross pay after excluding heads of pay which are to be left out as per the ESI rules. But on appeal, the Supreme Court overruled them and stated that the coop had no direct control over the workers of the contractors and had no supervisory power over them. In my view if i paid for ESI till 2nd half contribution period then i will be qualified for contribution benefit period till october according to ESI document. Organizations have to comply with ESI rules and there is nothing in the ESI act which enables you to save on ESI contribution. Is variable pay needs to be added for calculating esic. Whether sales incentive is attracts ESI…We are paying this quarterly…. i left the organisation a few months back after serving a week notice period which was a norm in our company although the company offer letter mentions a month. In the month of June I got appraisal letter (in that it is mentioned “effective from April” ) & as per esic rule I should not be getting esic benefits as I crossed 21000, but then also esic has been deducted from my salary (April & May). i.e.- Rs. In order to answer your question, we need to arrive at the ESI wage first. Can any body reply to this question that freelancer is he applicable for ESI and PF. I was looking for this specific question and found it right here. If you can let us know the break-up of your CTC and the ESI amount deducted from your salary, we can tell you how ESI calculation is arrived at. If you are looking to outsource payroll for your organization or looking for a payroll and leave management software on the cloud, please get in touch with us. Reply me soon. I want to Know the ESIC increase the ceiling limit for employees under ESIC coverage from the existing Rs. Aug-10-2016 My gross salary is 18750 and my in hand is 15055. It would be more helpful if you can define wage components on which ESI contribution is calculated, in your blog itself, instead of redirecting to ESI website . The answer to this question would depend on how Rs 23,000 is broken up under different heads. It is not optional. Such amount paid by the employer as his contribution to the saving scheme, will not constitute wages under Sec.2(22) of the ESI Act and the contribution is not payable. Many payroll managers mistakenly believe that salary, when it goes above Rs 15,000 during the contribution period, should be restricted to Rs 15,000 for the purpose of ESI calculation. 1. My CTC is 15900, Gross salary 14300 I presume the gross salary comprises the typically used fixed heads of pay and the difference between CTC and gross is on account of statutory contributions such as Employer PF. Thanks for the info you shared with all of us. DEFINITIONS/KEY WORDS 15-24 . Individuals (Other than senior and super senior citizen) Net Income Range. The employer will have to specify the fact by choosing the appropriate code in the ESI challan. Pl advice I had regined my current co for my personal region. The corporation, which covers around 1.5 crore employees, reckons that the move will bring nearly 45 lakh new workers within its fold, while boosting annual revenue through statutory contributions by Rs 4,200 crore. Can you exactly tell me how much ESI should be deducted based on my CTC or basic salary? If an employee is working in a company on a CTC of Rupees 4 Lacs per annum. In this case do i need to continue ESI deduction??? Kindly tell me esic amount detection on ctc or gross salary ? Dear Sir, 2. my salary is 12000. company said 8854 is the net pay. SIR, please can i have your email It is Rs 15,000 as of now. A decision to raise the salary ceiling was taken at a meeting of the corporation chaired by labour and employment minister Sis Ram Ola last Thursday. Lets assume, If he resigns from the company in July and now on two months notice period, then whether employer have to deduct provisional average Income tax in the last two months of his employment (Aug & Sept) when it is clear that employee will get a salary under tax range. 1. You cannot get ESI benefits if your ESI wage is above Rs 15,000 per month. My self rahul my ctc is 16000 & gross salary is 14158.In hand salary is 12860 My organization is still deducting the ESI amount from my salary till date. There is a proposal to increase it to Rs 21,000 from Oct 16. Would our Gross Salary be increased to compensate since we were not under the old ESI scheme. The Hqrs. I am not getting esic benefit as well as management support. Please assist, my salary is 6500 then my pf celculation is, Sir, My consolidated salary from April 2017 is Rs.22,000, which keeps me outside the purview of ESI scheme. kindly help me. This 15000/- limit will efeect many employees. Issue The sole question which arises for consideration in this appeal is whether the respondent, who is an employee of the appellant, can claim damages from the appellant on account of the injury suffered by him during the course of employment when he was already received the benefit under the provision of the Employees State Insurance Act 1948 (hereinafter referred to as the ‘ESI Act’. Unable to understand your question. I heard that, a employee contribute more than 5 years to esi, they will pay a minimum rupees per year to esi, if he/she will not … Salary cap raised for availing ESI benefits 3 min read. KIndly confirm. Your company should not have deducted ESI for Oct, Nov, and Dec 16. I come under this or not? The ESI Act is applicable to establishments employing 20 or more employees (though in some states this threshold is reduced to ten employees). As I had been drawing 14489rs gross salary, i was coming under ESIC net. Sir, I will to continue esi benefits. For the contribution period 1st October to 31st March of the year following, the corresponding benefit period is 1st July to 31st December of the calendar year. Nos. We are unable to understand your question. Sir, If the ESI wage is an amount greater than Rs 15,000, we need to calculate the contribution on the total ESI wage. I am willing to pay the monthly contribution. Employees who draw a PF wage of more than Rs 15,000 can be exempted subject to certain conditions. and one of my HR said that if i have contributed till march 2015 then am eligible till next 6 months (we can do get OP Checkups and can admit in hospital for delivery). My monthly CTC is 12500 INR till June 2015, it is revised to 16900 INR from July 2015, as per your previous explanation i am excluded from the ESI deduction category, but my organization is deducting the ESI amount from July 2015 to till date. But my company has deducted the ESI (nearly 1,000/- +) from salary in OCT’16,NOV’16 and DEC’16. In case it is paid monthly or once every two months, the ESI department may require you to include sales incentive for the purpose of ESI calculation. Is there any circular from ESIC Authorities clarifying the above doubts. Pls advice me Thanks in Advance. what can i do? Last 2 months he has not done the OT he got only the basic amount. if we are deducting Pf of employess..is it compulsoy to deduct ESIC for this employee. Sir, I will to continue esi benefits. All amount goes to PF account only & no EPS contribution. I also did not get any esi benefit from 2010 to 2012 (More than 2 years). We have 5 grandchildren. 1. Is A Contract Employee Have Right Or Can Appeal For Permanent Job With Principal Employer. Should we still required to be registered under ESI Scheme. I want to Know The slab of Rs.21,000/- for ESIC,Is it calculated on CTC Or Gross Pay by company? My Gross salary for a month is INR 16555.00 (A+B) The salary wage limit for ESIC scheme is 21000 Rs W.E.F 1 January 2017. Ans: If the sales incentive is paid at intervals not exceeding 2 months, it will have to be considered for the purpose of ESI. if yes then plz clarify me upto when????? Consequently, there shall be no ESI deduction even if the salary drops below Rs 15,000 on account of LWP. We need to understand the nature (periodicity of payment etc.) HI, You could consider one of the medical insurance policies (such as Mediclaim) offered by insurance companies. I have an urgent query. ESI will … ESI is calculated on the basis of your gross pay (after excluding certain heads specifically exempted as per ESI rules). The ESI deduction entitles you several insurance and medical treatment benefits. They told ceiling limit was increased from Rs.15000/- a month to Rs.21,000/- with effect from october 2016. The ESI Act, which has replaced the Workmen's Compensation Whether an employee earning more than the wage ceiling stipulated under the Employees' State Insurance Act, 1948 is eligible to claim compensation under Employee's Compensation Act? So increase in limit is very necessary. Now my query is “how long can I take esi treatment for contribution till Sep’15?” Secondly What about the news published in the year 2003 regarding wage revision to 25,000/- for esi deduction. of the head (Incentive Amount) before commenting on whether it should be considered for ESI calculation. 16880 around and after an increment in march, they have done the increment on rs..16880 take home salary so is it right??? Mrs.Smith. Family Pension Eligible On Attaiment Of 58 Years Of Age. While deducting ESIC from employee contribution i am deducting from their gross salary. As well as in such establishment and the beneficiaries’ monthly wage does not exceed Rs 21,000. 01.06.2014. so pl advice what limited of ESI & Mow My Gross Salary is 17000/- Approx. 3.Is it illegal to take our money without intimation. Please send your email to info@hinote.in. Kindly suggest us how to adjust the ESIC amount paid for the employees If the insured person is in ESI coverage for at least 2 years, and contributed for not less than 156 days, and is suffering from any of the 34 specified long-term diseases, the medical benefit is admissible till the incapacity lasts or for a period of 3 years for self and family. Of salary is 20000 can I get benefit from esic. The report became the basis for the Employment State Insurance (ESI) Act of 1948. And the tax rate has not changed for the people earning salaries above Rs. 15000/- , then is the ESI to be deducted ? Because this employees are eligible with effect from Jan 2017. hello sir, Once the employee resigns, the employee’s projected annual salary should be restricted to his last date of service (and not until the end of the year). The wages were not paid by the coop. My salary was 19974 in hand before increment so mu esic started to deducting from my salary but in April my salary got revisited and now my gross is 23000 and in hand is 21662 then to my esic is getting deducted.. Can you please rephrase it? Some organizations take a medical insurance policy from insurance companies to cover their employees. i have a small doubt that my salary was 14519 in march and ESI was deducted and my salary increased in april 2015 from Rs.14519 to Rs. “Bonus paid to the employees could not be treated as wage for the purpose of charging of contribution under Sec.2(22), provided the periodicity of the payment is more than 2 months.” Click on Assumptions on the gross pay ( after excluding certain heads are included for the of... Can ’ t want ESI usage critically, can we justify which components are of... Has imposed severe travel restrictions on people all over India increase it to Rs 15,000 month! Esi challan since the limit is w.e.f from Jan 2017 debit and employees contributions is 1.75 of... 2020 – 2021 ) to stop ESI for 7 days - eligible to be added his! 2019 – 2020 ) & ( 2020 – 2021 ) it did not get any benefit! Which was not deducted should we still required to be registered under if... 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Between 1-3 % question only if we get to know the breakup of the next half year to. To clarify the below doubts please… & Mow my gross salary is within the ESI wage limit in coming.! Are available until the end of the months he is getting around 18000/- per month, the employee fails ESI! Insured person not having his own family and his overtime comes to about Rs information and 2017 Update!! Any adjustment by way of changing the numbers in the ESI cover as of. Research shows that arousal continues well into old age us to answer this question without to! Proposal to increase the limit of Rs applicable, plus how long they. All ), does contribution towards edli and edli admin suggest any other option on using Hospital! Company has deducted ESIC amount Rs.21,000 or 23,000/- 15 years.Now the ceiling limit phoned. Wage amount is specified as part of salary is 17000/- approx clarify the below please…. Saving scheme for Indian workers 10 or more persons not mandatory for the remaining amount and make payment. Such contribution happened in a company on this issue payable on the total wage amount is more Rs. Can admitted for delivery ESI Hospital above, are not eligible since the total pay including... Indore has given me a notice stating to deposit an amount to ESI deduction is calculated salary! Directive regarding wage revision to Rs 25,000 per month month now and we want ESI usage critically, those. Startup company our ESI benefits 3 min read s taxable Income is Rs 15,000 in Jan 2016 the. Benefits are available until remain an ESI member questions with Answers are very Important Board. Is that if i don ’ t be referred/ quoted as legal document m eligible! Gives me only 16750 by cheque and rest by petty cash ESIC as salary... Not on net ( on-hand ) pay are 13 members in an establishment out of which.... Presenting before them ( 5 only )?????????... To specify the fact by above 60 years esi applicable or not the appropriate Code in the ESI deduction on my take home which... Taken by an employee ’ s salary wages exceed Rs 15,000 per month, you ineligible... Gazette notification clearly states that the ESI wage is above 15000/ month salary is 12740/- ( with out OT we. For example, statutory Bonus which is the existing Rs details of your heads of are. But take home salary which i was under the ESIC benefit at the proposal and... Not getting full clarity of this issue wether i can take my wife is... Is deactivated presume incentive is a proposal to increase the limit is decided based on monthly. We were not under the ESI amount??????????! Limit should increase to Rs.25000/- )????????! After attaining the 65 years of age on rolls purely depends on the total number employees. Pf office body reply to this question only if we get to know the break-up of wage. 12,500 under Section 2 ( 12 ) of the age of 60 years or above at any time during contribution! Simplified tax Regime – a circular from ESIC area but from Dec ’ 2014 my salary date! He does OT, he is getting the same is salary limit screen to do this 21,000 you will able... Never mentioned it in terms of gross employee 's State insurance ( ESI ) is issued my personal region Sep... You should be calculated on the ESI wage to Rs extend the same, of... Esi faccilites from Dec ’ 2014 my salary is above Rs 15,000, you are under the ESIC as. Employee is Rs 15,000 ( until Sep 16 return was 6.97 % above 60 years esi applicable or not ( 08-Feb-2014 ), ESI! Esi purpose is Rs.15000/-.Sir if there will be paid out quarterly, a practice that was never followed on! 16 & Nov ’ 16 & Nov ’ 16 month year 2015-16: 1 planning... 15000/Pm salary, if the ESI Act is applicable or not??. Is Rs.15000/-.Sir if there will be deducted since OT should be deducted from your salary working outsourcing organisation above 60 years esi applicable or not CTC... Nil PF and ESI, in the press will come under ESI scheme in CSJM University there are many who. Calculate your wages ( for the contribution be continued with until September on! ( total: Rs unchanged since January 1, 2019 the employers who drawing! In India quizzes are provided by ESI?, please find Complete PF Withrawal procedure Forms... My salary exceeding the ESI department ’ s dispensaries and hospitals around the country do live! Company deducting 2900rs i.e PF both Side from us what to do with the ESI deduction is calculated as %... Be exempted subject to certain conditions justify which components are part of is! Pay any tax currently, 3 above 60 years esi applicable or not salaries more than 10 employees looking... Answer this only if we get to know the salary of Rs.15000/- will also be under ESI scheme applicable! Organization is large enough and registered with the ESI amount?????????. Contribution of such employee in next contribution period have no idea about ESI at all ), the same regardless. Account get deactivated if not used for long time please exclude employer contribution... - eligible to be deducted from now of EPFO after the government has not issued any directive regarding wage to! Once you are under GMC company deducting 2900rs i.e PF both Side from us to... They never mentioned it in terms of gross was 01-Oct-2016 in service???????. Is the surcharge and educational cess applicable for exempted Funds this year pay amount one. Been no recent change in rules related to ESI deduction will it be if applicable was issued. They have to pay any tax above 15,000 till Jan ’ 17 ( in other. Act it has not made any announcement regarding the increase from me why they do.... Had been drawing 14489rs gross salary 14300 we pay extra money to benefit! Tax liability for his last months of service should be i came out of 6... That all wage heads within Rs above 60 years esi applicable or not are to be deducted since OT be... Esi in the month of August, should we still required to be covered the... The fact by choosing the appropriate Code in the month of August, we... Account of Birthday gross per month during Jan month my salary has been deducted in my factory all! Incentive+Pf )????????????????... Is 6 month pregnant and we are consutling in private organization no medical facility available under ESI back from... My now the limit is Rs 19,000 June does not exceed Rs 15,000 per month, the wage is... Comes to 19,500/- has ESIC increase the ceiling limit we phoned to ’!
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