Dear Sirs,
As per new wage code introduced in November 2025, the defination of Wages has been changed as Basic+DA only.
As per this can you please help the ESI applicability?
Should we deduct ESI whose Gross salary 42,000 then Basic salary is 50 % Rs 21,000.
So its make applicablity of ESI on this? and we have to deduct ESI on Rs 21,000/- or not?
Please clarify.
ESI applicability depends on ₹21,000 gross salary limit, not Basic + DA
Wage Code concept does NOT change ESI eligibility yet
In your case (₹42,000 salary), employee is outside ESI coverage
Hence, no ESI deduction required at all
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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