Basic Salary - 9000
total Earned salary - 20000
rate of ESI - 1.75%
Is employer is liable to deduct ESIC ????????
Please provide calculations too.
C.A. Sandeep Wawhal
(Chartered Accountant PGDFM BCom.)
(1823 Points)
Replied 14 December 2011
E.S.I.C. calculated on gross salary of employees earing upto Rs. 15000/- p.m.
For instance if mr. X earning Rs. 20000/-p.m. but presented for 15 days for a perticular month, then e.s.i.c. will not applicable in Rs. 10000 (20000/30*15) because his actual salary is more than Rs. 15000/- p.m.
Hence as per your question, e.s.i.c. is not applicable
Kannan
(Company Secretary)
(168 Points)
Replied 26 December 2011
No, not applicable, so far as the salary does not exceed Rs.15,000. Further, esi is applicable only in covered areas. There are many places, where esi is not applicable.
Sagar Hivarkar
(Student MBA)
(21 Points)
Replied 28 May 2013
Hi,
Suppose if a person gets salary of Rs. 16000/- per month. But due to absentism he receives Rs.7500/-, then is ESIC applicable to him,as the amount received during that month is less than 15000/-? Profession tax for that month should be Rs.175/- or 200/-? Please show the calculation.
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