10 January 2012
One of our employee is paid a salary of Rs. 20000, hence ESIC is not applicable but suppose he is absent for 15 days and paid Rs. 10000, whether ESIC for the said employee needs to be deducted.
10 January 2012
ESI act applicable on those employees drawn Basic salary not exceed Rs. 15000.
In above case ESI not required to be deducted because Basic salary exceeds Rs. 15000...Absenteesm is irrelevant for deducting ESI..whether salary Rs. 10000 ESI not deductable.
ESI to be deducted on basic salary less than or equal to15000/- per month or It is deducted if Gross Salary (Basic+DA+HRA+Allowances)is less than or equal to15000/- per month (1.75% will be deduct from salary and and employer contribution will be 4.75%)
Abhishek Ranjan Singh ARS Solutions email2ars@gmail.com +91 9022838615