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Dear Madam/Sir,
Please guide me if Basic+HRA is more than or equals to Rs7500/- does ESI deduction has to be made.
And please also tell me does we take into account HRA & Convenyce while calculating ESI.
From India , Delhi
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Dear pooja,
Please note that the ESI limit is not Rs. 7500/- but has been increased to Rs. 10,000/- w.e.f. 1.10.2006.
As per Section 2(22) of ESI Act, Wages means all remuneration paid or payable incash to an employee. This includes HRA & conveyance as well.
From India , Delhi
Hi! Pooja,
For ESIC you have to consider all the fixed components of your monthly salary. You should not include any variable components.
I believe the ceiling for ESIC has been raised to Rs. 10000/-. Am not too sure on this but you could get the same confirmed.
From India , Mumbai
:)The limit has been enhanced to Rs. 10,000/- p.m. excludes washing allowance if any from the gross. Variable components like OT to be included for payment of ESI deduction but not for the eligilibility clause.
From India , Hyderabad
ESI is calculated on gross i.e basic,DA,hra,Conveyance and any other components as part of salary. The cealing 10,000/- and not 7,500/-. employee contribution is 1.75% of the gross and employer contribution is 4.75% of the gross.
From India , Madras
ESI will get covered if the number of Employees equals to 10 or more if operating with the aid of power and 20 employees are more ( without power)
We are a software company , for us the limit of 10 will apply of limit of 20 will apply
Pls clarify
From India , Madras
:)Hi Kleemsyed,
As your company is software company, you will get coverage under ESIC if total number of employees in your company is more than or equal to 20. Also the rule of salary limit is applicable.
From India , Mumbai
Dear Pooja, ESI is applicable upto the salary limit of 10000 .All the emplyees whome monthly income(gross) is lesss than or equall to 10000 are cover under it. Regards Prachi
From India , Bhopal
Thanks for the clarification Anmol
The plain reading of the act says if the number of employees 10 or more and if you are operating with the use of Power, We get covered.
When you say operating with power. we are also using power in the sense that for running the computers and airconditioners and lighting .
What is the right interpertion of phrase ' with the use of power and without the usage power contemplated by the ESI Act
From India , Madras
Hello Puja ESI deduct if total salary (included basis, HRA,Conv.) is Rs. 10000/- or less. HRA & Conv. if received if monthly salary than must be calcuting ESI. regard rajesh
From India , Gurgaon
Hi Pooja,
ESI is calculated on basis of Basic, DA, HRA, OT which paid to employees, it will be deducted sum of all the above upto Rs.10000/-, more than that u need not to deduct. Contibution - Employee-1.75 % and Employer - 4.75%
From India , Madras
Hi.... Pooja
1) ESI is applicable where the number of Employees equals to 10 or more if operating with the aid of power and 20 employees are more ( without power)
2) ESI is calculated on gross i.e basic,DA,hra,Conveyance and any other components as part of salary. The cealing 10,000/- and not 7,500/-. employee contribution is 1.75% of the gross and employer contribution is 4.75% of the gross.
3) Any payment you made on voucher or as reimbursement is not covered for ESI Contribution. Whatever salary components you show on your salary sheet or register are to be considered for the computation of ESI contribution.
From India , Indore
The wages for the purpose of ESI means the fixed salary minus all those allowances which are paid to employees for meeting expenses incurred by him/her in perfomance of duties.
Eg. Washing allownance paid to employee of a lab or hospital is an excluded item from
fixed salary while calculating wages for determining ESI Contribution.
From India , New Delhi
if the gross salary of employee is less than 1000 the hw will be cover under ESI note thatEsi is also applicable on overtime & sales incentive . upper limit of ESI is 10000 (gross)
From India , Bangalore
Dear All.
Esi Deducation is Total Gross of Salary
Thanks for lot
Dear all .
Esi Deducation : who are monthly Earning Gross Salary Below 10000 they have been applied for Esi and Calculation Total Gross Salary .
thanks for lot
Sap Hr Consultant
From India , Bangalore
Dear all,The present limit is Rs. 10,000/- and it includes all direct benefits. The coverage is applicable to any company which has more than 10 employees employees througout the year. Few company's take exemption under ESIC act, but the approval is need to be sought from the authorities, wherein you need to cover the employees under the mediclaim scheme.RegardsDolphy Goveas.
From India , Madras
Kindly tell me the PF deduction rules With regards Preeti Hi! Kindly tell me how to write the promotion letter. regards Polo
From India , Patiala
Hi Pritee,
Provident Fund is applicable on an institutuion/industry/organisation which engage 20 or more employees. This is an Social security Act governed by central govt. This is a equal contributry Fund.
P.F. is deducted on Basic+DA @ 12 % as contribution of Employee & equal contribution by employer too.
Means 24% goes to P.F. A/c per Month
Out of the above contribution 8.33% goes into Family Pension Fund.
for retirement/widow/ childern pension to the employee.
From India , Indore
Hi! Please tell me about the rule of per day salary calculation is it 30 day or annual salary divided by 365 days
From India , New Delhi
SSN is a abrivation of SOCIAL SECURITY NUMBER.

This number is provided by Provident fund office & is necessary for all the members who are coverd under P.F.Act. This will have great help in speedy settelment of accounts & Pension matters of the members.
This number is introduced to have a centralized accounting & controling of individuals anywhere in India.
From India , Indore
Dear All
I would like to know that whether an employee who is eligible for ESI facility can avail 06 days Sick leave annual quota leave or not ?
Secondly from whom an ESI eligible employee can claim his daily wages if individual admitted in ESI hospital
please kindly help me out with this asper Act
with regards
From India , Hyderabad
Even though employees is covered under ESI, the employee is eligible for sick leave, he can avail the same by intimating after resuming to the work, you can give him salary.
For your second question, suppose a employee takes a ESI leave & submits fthe orm given by ESI dispensary where doctor is adviced for leave or rest, then u should not pay his salary, bcoz ESI will pay his 50 % his daily wages / day, u should mark his attendance as ESI leave or absent and also u should certify to ESI that u have not paid salary for his absent days., it is also applicable for ladies gone on maternity leave for 84 days.
I hope u will be clear now.
From India , Madras
Dear All,
Please tell me how to calculate the PF and other allowance in a software company and how to apply.
Example: If one employee salary is 20,000/- means what are dedications and allowance are provided in a software company. Kindly explain in detail.
From India , Madras
Hi Friends,
Could u please tell me ESI limit for employee & employer in salary but i know their ESI contribution (i.e) Employee contribution is 1.75 & Employer contribution is 4.75. Actually want to know the ESI eligibiltiy for Employee & Employer
From India , Thana
Dear Rashmi
ESIC is applicable to the employee whose gross salary is or less than Rs. 10000/- Employee contribution being 1.75% and Employer's being 4.75%. Employees who get more than 10000/- will get medical allowance of 1250/- PM.
Dear Priya
Provident fund is calculated on Basic+DA. All Employees have to contribute towards provident fund and the contribution is 12% of basic+DA. The employer's contribution will be 12% plus 1.61 towards administrative charges. If the employee is under EPF then the employer contribution will bifurcate in to two, ie 8.67% of Er. contribution will go to Pension fund and 3.67% of contribution will go to EPF. This bifurcation of Employer contribution will be done if the employee has served in an organisation continously for 9 years and if employee has opted for the scheme.
From India , Mumbai
Can anyone clarify if basic arrears, hra arrears, special pay arrears (onetime) is considered as income & is ESI deductions application on these arrears. Please clarify
From India , Hyderabad
ESI ceiling is enhanced to Rs. 10,000/-; on gross wage ESI has to be payble, when we observes the Wage definition it includes all components(basic, DA, HRA, TA etc) Though OT is not a part of the wage (variable component). Is it (OT) attracts the ESI or not?
Can anyone makes me clear?
From India , Visakhapatnam
Dear All

Salary limit for ESI is Rs.10000/- gross. Basic and all allowances (except Washing Allowance where it is paid) should be taken.
ESI contribution is deducted till such time they get salary of Rs.10000/- or less. But, if any employee gets more than this on the opening month of the contribution period i.e. April or October then no contribution is to be deducted. In case his salary is Rs.10000/- on the opening month of the contribution period i.e. April and October but increases in subsequent month - his contribution is to be deducted till the end of the contribution period i.e. September or March respectively.

Factory with 10 employees run with the aid of power is covered under ESI. There is two views in respect of Software Company. ESIC treats the Software Company as a company; but there is a strong ground to refute this too. This is because computer is not to be treated as "aid of power" as per the Factories Act. This ambiquity is to be settled by court of law only.

Sans Management Solutions

From India , Madras
When the gross salary of an employee is 10000 gross ( basic+hra+da+convence) then esi is applicable. the employee contribution is 1.75% of gross and employer contribution is 4.75% of gross.
Ashutosh rai

From India , New Delhi
We are a construction company working in the extension of steel plant. The running plant is in DTA wheresa its extension is in SEZ. We are working in SEZ area. The running plant (in DTA area) is already covered under ESI Scheme. Please anyboby suggest me whether we will be covered under ESI Scheme.
From India , Delhi
see friend..
who are the employee getting below Rs/10000 grass salary.... that person only eligible for getting ESI....
(Rs/10001 grass salary ) this person is not eligible for getting ESI benefit...
the above structure is in ESI ACt...
From India , Hyderabad
Dear all,
Can anyone guide in this below matter,
We had one small company and it was closed during 2000, personal hearing was posed by ESI on various dates we attended all the hearing and finally order u/s 45 A was given for the period from 95-96 to 99-2000 and we paid all the contributions including interest & damages. Now we have received a public notice in the newspapers saying that we havenít attended the Personal hearing for the period 93-94 & 94-95. Is it possible for the corporation to insist us to produce the records for the left out period? Since this is the mistake of the assessing officer for not going through the file while assessing from 95-96 to 99-2000. What should we do in this matter? Moreover the records pertaining to the period 93-94 & 94-95 is totally damaged. How to reply ESI? Please give us your valuable suggestion.
Thanks & Regards,
From India , Madras
hi friends
I am sudheer
My doubt is som people said ESI duduction of 1.75 is on basic some says tht 1.75 is on gross salary of employee. so which is the correct.
plz give early reply
Thanks & Regards
From India , Hyderabad
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From India , New Delhi
Dear Pooja, Mr.Prakash Dixit has guided you correctly. Can go ahead as per his statement. Rgds Uday
From India , Indore
Dear Sir / Madam,
Please guide me that if a person was working in esic zone for the month of may_10 but suddenly same person was transfer from esic zone to non esic zone in june, in this condition is esic will be deducted or not ? also let me know that suppose my gross amount is increased up to 20000/- from april '10, previously it was 8000/- esic will be deduted upto esic limit Rs. 15000/- or full gross amount Rs. 20000/-?
From India , Ahmadabad
Dear All,
Let me update you all that ESI Coverage Limit is enhanced to Rs.15000/- Pm from Rs.10000/- Pm wef 01.05.10
( check notifications ) across India.As far as Calculation of Salary is concerned, it is calculated on gross i.e basic,DA,HRA,Conveyance and any other components as part of salary. employee contribution is 1.75% of the gross and employer contribution is 4.75% of the gross. ESI will get covered if the number of Employees equals to 10 or more if operating with the aid of power and 20 employees or more if operating without power.
Uday Raverkar
From India , Indore
Dear all, Now the gross salary limit is not 10,000...its GS<=15000 i.e person who have gross salary less than or equals to 15,000 will be eligible for ESI. Regrads, Monica
From India , Lucknow
Limits have been changed for ESI deduction. Employee whose salary is 15000 or less then 15000 pm comes under the deduction of ESI. It is calculated on gross salary
From India , Jaipur
Dear All,
Ministry of Labour and Emplyment has increased the scope of Employee state insurance act , 1948 vide notification dated 20.04.2010.Now employee taking salary up to Rs 15000/- (increased from 10000)are covered under ESI ACT ,1948.Notification is given below.This Notification is applicable from 01.05.2010.
Thanks & Regards
Ketan Solanki
From India , Vadodara
ESI registration is applicable only for the companies whose total no.of staff are 20 & above.
ESI has to be calculated on Gross Salary.
applicable only to employees drawing gross salary not exceeding 15,000 per month.
Employee share is 1.75%
Employer Share is 4.75%
from this month onwards ESI payment has to be reimitted online
From India , Bangalore
Hi Kindly help Employee monthly gross is Rs. 7000/- and Inthis month his earned grossed is 4666 he attended only 20 days of the month exactly on which (7000 or 4666 ) the ESIC deduction will be taken
From India , Nasik
ESI is applicable upto the salary limit is 15,000/- not for 10,000 on gross.... Rgds, Venu
From India , Hyderabad
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