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Esi minimum limit

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Querist : Anonymous

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Querist : Anonymous (Querist)
13 January 2014 We have 20 employees , all of them deducting amount for PF , But 4 employees ESI Basic Salary Rs 2600/- , So the employer deduct the 1.75% of Rs 2600/- or not ? & have any minimum limit for ESI Calculation ?

13 January 2014 Brief Information on ESI:

ESI Laws are applicable on employees receiving a salary less than or equal to Rs. 15,000 in establishments which employ more than 10 persons.

For the purpose of getting ourselves registered with the ESI Department, we will need to get a form filled up from all employees covered under this scheme.
To know more regarding ESI benefits you are requested to visit the link given below:
https://www.esic.nic.in/other_scale_mb.php

LIABILITY TOWARDS ESI

As per law, the liability towards ESI is 6.50% of the total salary paid to an employee. The contribution payable to the government is shared as under:-

1. Employee contribution: 1.75%
2. Employer contribution: 4.75%
Total:- 6.50.%

In other words, the maximum liability of ESI per employees is Rs. 975, out of which Rs. 263 shall be recovered from the employee.


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