22 February 2014
Dear Experts, Kindly guide me in the following situation.
An employee whose salary earlier was within the threshold limit of ESI and PF and subject to deduction,got his salary revised over and above the ESI and PF limit.
Do we have to deduct contributions from his salary after his revision.
In case of PF you once you start contributing PF then after exceeding PF limit you are required to contri. toward PF.
However you have a choice to restrict your contribution to Rs. 6500.
In case of ESI if your salary exceeds beyond thresh hold limit then you are required to contribute the contri. till end of current cycle. After that you are not required to contri. ESI.
ESI cycle is Apr - Sep & Oct - Mar. So if you are in first cycle & if your salary exceed in month of June then you are required to contri. Esi upto Sep & from Oct you are not required to contri any ESi from Oct.
CAclubindia
