Esic computation and limit

This query is : Resolved

Pradeep kumar (Querist)
Follow

18 October 2014 Sir,
iam having a doubt relating to applicability of esic.pls clarify.
In our organisation X employee monthly ctc is 15000/- where Y ctc is 15100/-.Whether Esic applicable to both or only X as his CTC is less than or equal to 15000/-?

If ctc is applicable to employees ,on which amount contribution should be calculated.
I.e. on CTC/Gross.
Gross=CTC-employer pf contribution---is this correct for esic purpose

Pls clarify me AEAP.

Regards,
Pradeep Kumar

@VaibhavJ

@VaibhavJ (Expert)
Follow

20 October 2014 Hi

it is calculated on Gross salary.

Gross: Basic + All allowances paid to employees on monthly basis.

Thanks

@VaibhavJ

@VaibhavJ (Expert)
Follow

20 October 2014 Pl refer:

https://www.caclubindia.com/articles/esic-in-detail-16236.asp

Thanks

Dhanashekhar K V

Dhanashekhar K V (Expert)
Follow

21 October 2014 Hi Pradeep,

First you need to understand CTC & Monthly salary. Please refer below.

ESI will not be calculated on CTC. CTC means Gross Salary + Employer PF+ Employer Gratuity Group Insurance + other statutory benefits if any...

ESI applicability will apply only on fixed monthly gross salary. Examples below for your reference(assume figures are monthly).

Example 1
Basic : 6500
HRA: 3250
Conv:800
Spl Allow : 1000
Total Gross : 11550/-
ESI is applicable

Example 2
Basic : 10000
HRA:5000
Conv:800
Spl Allow : 2000
Total Gross is 17800/-
Let say you have joined mid month, hence you are getting salary for that monthly less than 15 thousand, In that case ESI will no be applicable. since you actual gross is more than 15 thousand.

Thumb rule: ESI is applicable upto 15000/- not as 14999/-

Hope the above is clarifies.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Rahul Kulkarni

suresh kotte

Shashank S Gore

chandradhass sathish

THOMAS JOHN

Subscribe Now

Esic computation and limit

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA