Hi....
Can any one plz explain me about the ESIC calculation
whether it will calculate on Gross or on CTC
In my Company most of employees are work for ot.
For Ex Employees CTC =10000
He did OT for that month and he got another 7000 as ot amount
then total Gross =17000
Now my question is this that is this employee is eligible for ESIC or not?
Please help me and give the responce for this
From India, Vijayawada
5Can any one plz explain me about the ESIC calculation
whether it will calculate on Gross or on CTC
In my Company most of employees are work for ot.
For Ex Employees CTC =10000
He did OT for that month and he got another 7000 as ot amount
then total Gross =17000
Now my question is this that is this employee is eligible for ESIC or not?
Please help me and give the responce for this
From India, Vijayawada
Dear Ms Suneetha,
In your case not eligible for ESI, because his getting 17000 PM.
As per ESI act 1948 who are earning per month 15000 PM eligible for ESI.
Contribution for ESI:
Employee Contribution:1.75%.
Employer Contribution:4.75%.
Example:
One person getting 10000 PM.
in this case employee contribution on Earning Gross:10000*1.75%.
Employer contribution on Earning Gross:10000*4.75%.
From India, Hyderabad
In your case not eligible for ESI, because his getting 17000 PM.
As per ESI act 1948 who are earning per month 15000 PM eligible for ESI.
Contribution for ESI:
Employee Contribution:1.75%.
Employer Contribution:4.75%.
Example:
One person getting 10000 PM.
in this case employee contribution on Earning Gross:10000*1.75%.
Employer contribution on Earning Gross:10000*4.75%.
From India, Hyderabad
For the purpose opf deciding coverage of an employee to ESI, overtime wages will not be taken in to account. That means if an employee's wages is Rs 10000 and he use to get Rs 7000 by way of overtime wages then also he will be covered by ESI since for DECIDING coverage OT wages will not be considered. At the same time for calculation of contribution payable, the overtime wages should be taken in to account. That means his contribution will be on Rs 17000 and not on Rs 10000 or even Rs 15000. Rs 15000 is the salary ceiling for COVERAGE and a person getting salary more than Rs 15000 except his OT will be out of coverage.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Dear Madhu t.k.'
greetings for the day,
For coverage of an employee under esic scheme the overtime wages should be necessarily consider, only those allowances should not be taken into account those who are reimbursed i.e travelling allowances.
thanks & regards,
from,
sumit kumar saxena,
9899669071
From India, Ghaziabad
greetings for the day,
For coverage of an employee under esic scheme the overtime wages should be necessarily consider, only those allowances should not be taken into account those who are reimbursed i.e travelling allowances.
thanks & regards,
from,
sumit kumar saxena,
9899669071
From India, Ghaziabad
Dear suneetha
the person is getting salary 10000/- per month but he do the overtime and he earnd 7000/- extra the esic will deduct on 17000/- because he was also covered by esic when he was doing over time in next month may be he will got 10000+ 3000 ( over time ) then the esic will deduct on 13000/-. When a esic inspector will audit urs firm he will see all urs ledgers and accounts book and if found there overtime account and if u do not deduct the esic contribution on that wages then he will collect 6.50% contribution from urs firm. So i advise plz deduct the esi on over times wages.
Thanks
pawan bhatia
09812585353
From India, Bahadurgarh
the person is getting salary 10000/- per month but he do the overtime and he earnd 7000/- extra the esic will deduct on 17000/- because he was also covered by esic when he was doing over time in next month may be he will got 10000+ 3000 ( over time ) then the esic will deduct on 13000/-. When a esic inspector will audit urs firm he will see all urs ledgers and accounts book and if found there overtime account and if u do not deduct the esic contribution on that wages then he will collect 6.50% contribution from urs firm. So i advise plz deduct the esi on over times wages.
Thanks
pawan bhatia
09812585353
From India, Bahadurgarh
Dear Friends,
I do agree with Mr. Madhu's view. If an an employee draws below Rs. 14999/- gross wages he is covered under ESIC. If he earns another Rs. 7000/- as OT, even for that also you have to pay ESI contribution. ONly Washing allowance is excluded from ESI contribution.
G.K.Manjunath
Manager-HR
From India, Bangalore
I do agree with Mr. Madhu's view. If an an employee draws below Rs. 14999/- gross wages he is covered under ESIC. If he earns another Rs. 7000/- as OT, even for that also you have to pay ESI contribution. ONly Washing allowance is excluded from ESI contribution.
G.K.Manjunath
Manager-HR
From India, Bangalore
Dear Sunitha,
As per ESIC ACT Regularation 14
There is declaration - every person employed as an employee within the meaning of Section 2(9) of the Employees' State Insurance Act, 1948 on ................................ in this factory or establishment and is respect of a remuneration not exceeding Rs. 15,000/- (excluding remuneration for overtime work)"
There is no more clearification required for OT as it is Excluded for ESI.
Regards,
Tejal Shah
From India, Vadodara
As per ESIC ACT Regularation 14
There is declaration - every person employed as an employee within the meaning of Section 2(9) of the Employees' State Insurance Act, 1948 on ................................ in this factory or establishment and is respect of a remuneration not exceeding Rs. 15,000/- (excluding remuneration for overtime work)"
There is no more clearification required for OT as it is Excluded for ESI.
Regards,
Tejal Shah
From India, Vadodara
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ESIC Calculation.zip
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