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Old 06-30-2008, 11:14 AM
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Join Date: May 2008
Posts: 43
Default ESIC Query!!

Hi friends!
Am new member of this group n I have gained useful information related to HR.
I have a query.

1. What is the salary limit for any employee to be covered under ESIC?
2. Whether OT is considered along with gross salary for calculation of ESIC?
3. In case OT is considered along with gross salary and the total amount crosses max. limit, whether such employee still falls under ESIC bracket, and if the employee does not fall under ESIC Bracket then how does such employee get covered as far as medical exigencies are concerned?
Regards
Anubhav
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Old 06-30-2008, 11:17 AM
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Join Date: May 2008
Posts: 37
Default Re:

Hi,

1. What is the salary limit for any employee to be covered under ESIC? - Rs 10000/- Gross salary per month.
2. Whether OT is considered along with gross salary for calculation of ESIC? - On OT you gave to calculate the the ESI and deposit it. for eg. An employees' gross salary is 9000/- and in the month of May 2008 he got the OT of Rs 1500/-, in this case you have to calculate the ESI on RS 9000 + RS 1500 = RS 10500/- .
3. In case OT is considered along with gross salary and the total amount crosses max. limit, whether such employee still falls under ESIC bracket, and if the employee does not fall under ESIC Bracket then how does such employee get covered as far as medical exigencies are concerned? - Since OT is not a regular payment, so after adding it if a person's salary would cross the limit eventhough we have to calculate the ESI on that amount ( including the OT). The OT will vary month to month.

But during the contribution period i.e April to Sept OR Oct to March, if you revised the salary ( Gross Salary ) of the employee and it crosses the limit, in that also you have to deduct the ESi on the upper limit i.e. Rs 10000/- till that contribution.

Mujmil
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