ESI Deduction

This query is : Resolved

Vikash Parmanandka (Querist)
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09 December 2010 I have a confusion regarding employee's contribution towards esi for employees having salary less than Rs.2100/-
Will employer pay for employee's contribution also or only 4.75% will be deposited for such employees?

Arun Iyer

Arun Iyer (Expert)
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09 December 2010 Dear Vikash,

Employer Deposit total 6%

Employee Contribution : 1.75 %
Employer Contribution : 4.25 %

Thanks

Vikash Parmanandka

Vikash Parmanandka (Querist)
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10 December 2010 Dear arun,

i am sure that the rates are cumulative 6.5%

Employee Contribution : 1.75 %
Employer Contribution : 4.75 %

But in case of employees having a salary less than 2100 p.m. wot will b the deduction amount for employe's cotribution...

Sunali

Sunali (Expert)
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11 December 2010 As per the ESIC Scheme

Employees’ earning upto Rs.50/- a day as wages are exempted from payment of their part of contribution. (Source: www.esic.nic.in)

Hence, in my opinion, employee will not be exempted in the given case and hence 1.75% + 4.75% = 6.50% needs to be deposited.

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Vikash Parmanandka

Vikash Parmanandka (Querist)
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11 December 2010 Thank u Sunali....
tht wias a great help!