Esi

This query is : Resolved

naga raju (Querist)
Follow

21 February 2014 Dear Sir/Madam,

My brother is an employee in a private software company. Currently she is a trainee and drawing a salary of Rs.15000 where she was forced to contribute for ESI and after 3 months her salary will increase to Rs.26000 by which the slab rate the ESI will not applicable. My query is it is compulsory for her to continue in the ESI contribution or is it optional to her once her salary increased

CA Aditya

CA Aditya (Expert)
Follow

21 February 2014 As per the ESIC Act if the gross earnings are Rs 15 or less than 15 K then ESI @ 1.75 from employee ( On Gross Earnings) and 4.75 % by Employers (Gross) needs to be contribute.

Above deductions are mandatory if salary 15 or less than 15 K.
Once her salary increases more than 15 k ESI deductions are not applicable

naga raju

naga raju (Querist)
Follow

17 April 2014 In this case she employed as a trainee but not as an employee , still is it required to pay ESI,

If it is required than can we get treatment as per ESI rules after the increment of salary?

Can an employee himself contribute for ESI ,if contributed can he get deduction of INCOME TAX computation