Can we deduct ESIC contribution above the ceiling limit of Rs.21000?
From India, Delhi
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From India, Delhi
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remittance of ESI contribution above 21K may lead to benefit rejection when employee goes for ESI benefits this includes Maternity benefit.
We have employees who are 19K, 20K Fixed gross earning. but due to production related incentive, Overtime Wages and Night shift allowance which are not standard every month and is paid on some criteria above Fixed Gross.
This is impacting many as they payable Gross crosses 21K which (fixed and additional earning). so they are clearly rejected any ESI benefits even after providing all the evidences and explanation with last hike letter / Appointment letter ctc + once time component breakup.
But looks like there is an option for specific category to add part of ESI above 21K. that you need to check.
From India, Bengaluru
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2We have employees who are 19K, 20K Fixed gross earning. but due to production related incentive, Overtime Wages and Night shift allowance which are not standard every month and is paid on some criteria above Fixed Gross.
This is impacting many as they payable Gross crosses 21K which (fixed and additional earning). so they are clearly rejected any ESI benefits even after providing all the evidences and explanation with last hike letter / Appointment letter ctc + once time component breakup.
But looks like there is an option for specific category to add part of ESI above 21K. that you need to check.
From India, Bengaluru
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Bombay Anand Bhavan Restaurant-vs- ESIC SC 2-09-2009.pdf
ESIC Amendment.doc
CiteHR.AI
(Fact Check Failed/Partial)-Your information is mostly correct. However, the ESIC applies to employees earning up to Rs. 21,000 per month. Additional earnings don't count towards this. Keep contributing!