HI..
CAN ANYONE TELL ME.. IF THE GROSS SALARY OF AN EMPLOYEE IS LESS THAN 15000 IN A MONTH AND ESI WAS CUT FROM HIS SALARY, BUT NEXT MONTH DUE TO INCREMENT HIS SALARY CROSSES THAT LIMIT.. DO WE STILL NEED TO PAY ESI CONTRIBUTION FOR HIS SALARY..
THIS SITUATION IS AFTER CONSIDERING THAT NOW HALF YEARLY RETURN IS NOT REQUIRED TO BE FILED.
THANXX..
Dear Apporva,
As per ESIC Act - 1948
| There are two contribution periods of six months duration each in a year, in respect of an insured employee, with corresponding benefit period of six months each as under:- | |
| Contribution period |
Corresponding benefit period |
| 1st April to 30 September | 1st January to 30th June of the year following |
| 1st October to 31st March of the year following | 1st July to 31st December of the calendar year |
| In case a person becomes an employee within the meaning of the Act for the first time, the first contribution period will commence from the date he enters into insurable employment for the first time in the contribution period current on that day and his corresponding benefit period will commence on the expiry of nine months from the date of such employment. | |
Coming down to your doubt, whoever covered under ESIC Act, if his date of joining falls after 1st April or 1st October, the contribution to be continued upto the end of that particular contribution period, irrespective of salary above Rs. 15000/-
Regards
Kiran A. T.
Thank u Mr. Kiran A.T.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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