Hello seniors, Pls guide me whether ESI is contributed on minimum wages if gross salary is below Minimum wages as applicable in state?
From India, Jodhpur
1. Sir, there is no relevance of minimum wages so far as ESI Act, 1948 and rules/regulations framed thereunder is concerned. Both employees' share as well as employers' share are to be deducted even if the minimum wages of an employee is less than as laid down under relevant laws of appropriate government. If any employer/unit is paying less than minimum wages, it is for the appropriate authorities to examine the issue under minimum wages laws applicable in that state where said unit is located.
2. Only exemption is that in respect of employees getting average daily wages "upto and inclusive of rupees one hundred" are exempted for paying their employees contribution. Please see Rule 52 of ESI (Central) Rules, 1950. However, in such cases also the employers' share of contribution is required to be paid.

From India, Noida
ESIC deduction is on gross you can exclude washing allowance from the calculation.Check ESIC website for any clear clarification.
From India, Chennai
Sir, does that means for ESI minimum Wages issue is not applicable however if employee gross Salary is upto 3000/- Then No employee contribution is to be deduct.. Your view pls......
From India, Jodhpur
Dear Kumar.Kankit
Are you expecting a reply from CiteHR members on how to break the Laws ???
I am astounded at your insistence on trying to find loopholes to escape ESI.
moreover, your company is doing it so unabashedly, that they are not even paying the minimum Wages as prescribed by Law.
Are you a qualified HR person ???
If so, i would suggest you refrain from being a party to such illegal and illicit activities.
Regards.

From India, Delhi
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