Dear Sir, I would like to know how to calculate ESI on OT? Is it a ne provision? Please tell m?
From India, Nagpur
2From India, Nagpur
It is not a new provision. Overtime wages is not considered for deciding whether or not an employee is covered by ESI but for determining the amount of contributions the same is taken as wages. That means the total amount of wages including Ot will attract contribution and even if during any month the total amount exceeds Rs 15000, contribution should be calculated on that higher salary not restricting the contribution to Rs 15000. Therefore, if an ESI covered employee's wages during a month including OT comes to Rs 17000, then contribution for that month shall be worked out on Rs 17000 and not on Rs 15000.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
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ESI contribution rates lowering.pdf