06 July 2022
The last month we got a notice from ESI for a site inspection. At the time of inspection, the inspecting officer verified our Blance sheet and Profit & Loss account. After a few days we again got a notice from ESI and asked to pay 28318 (4% for our expense like Rent, Repairs & Maintenance, Labour Charge, Shop Expense, Service Charge, Loading Charge).
07 July 2022
ESI not payable on your expenses. It's 4% payable on salary paid to your employees. E.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act.
The contribution payable to the Corporation in respect of an employee shall comprise of employer's contribution and employee's contribution at a specified rate.
The rates are revised from time to time. Currently, the employee's contribution rate (w.e.f. 01.07.2019) is 0.75% of the wages and that of employer's is 3.25% of the wages paid/payable in respect of the employees in every wage period.
Employees in receipt of a daily average wage upto Rs.137/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
07 July 2022
It's a wrong notice. First check are you covered under ESi. How many people you employ. 4% is applicable on salary paid only, not on rent and other expenses. rseeraman@gmail.com
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