A doubt ESI on arrear salary - Pls.help

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C.A Alok Mukherjee (Querist)

23 December 2009 Suppose an employee's gross salary is Rs 8000 in Dec 09 due to a revision of pay his salary will be revised to Rs 12000 per month from April 09. Now my question is whether ESI will have to be deducted for the balance contribution period for him? If " Yes" on which amount, on Rs 10000/ (maxm limit fixed for ESI) or Rs 12000/- can anybody help me out referring the appropriate provision of ESI.

ANIL JANGID

ANIL JANGID (Expert)

23 December 2009 IF HIS SALARY revised to Rs 12000 per month from April 09.THEN NO ESIC DEDUCT FROM OCT.09.
The slab period for ESIC deduction is from April - September and October - March.

C.A Alok Mukherjee

C.A Alok Mukherjee (Querist)

25 December 2009 But, the decision of revision is in Dec 09, therefore for the contribution period Oct to March 10, he will continue because we have already paid his contribution in Oct,09 and Nov 09. Is my understanding is wrong?

ANIL JANGID

ANIL JANGID (Expert)

25 December 2009 then from april 2010, no need to deduction of esic.

C.A Alok Mukherjee

C.A Alok Mukherjee (Querist)

28 December 2009 agreed, but from April 09 esi deduction on which amount Rs 10000 or Rs 12000? If it is on Rs 10000 then which section it govorns? If it is Rs 12000, then also which section we have to follow?

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