The component Overtime is not to be considered for ESI applicability. It is considered only for ESI deduction purpose.
If an employee’s salary excluding OT Rs.14000/- & OT is Rs 2000/- then he is covered is under ESI & ESI is to be deducted on Rs. 16000/-
There are two contribution period for ESI i.e. 1st April to 30th September and 1st October to 31st March. Thus, if an employee is covered under ESIC in April, then he is to covered for the whole contribution period i.e. up to Sept., even if is salary in May is more than Rs.15000/- , the employee will be out of ESIC only from October.
Hope the above clears all your doubts.
Regards
Ganesh S Iyer
From India, Mumbai
1If an employee’s salary excluding OT Rs.14000/- & OT is Rs 2000/- then he is covered is under ESI & ESI is to be deducted on Rs. 16000/-
There are two contribution period for ESI i.e. 1st April to 30th September and 1st October to 31st March. Thus, if an employee is covered under ESIC in April, then he is to covered for the whole contribution period i.e. up to Sept., even if is salary in May is more than Rs.15000/- , the employee will be out of ESIC only from October.
Hope the above clears all your doubts.
Regards
Ganesh S Iyer
From India, Mumbai
As per my experience we are paying ESIC on OT too.
Because we have consider two aspects:
1.Employee should work for 8 hrs a day.If something happens in that time ESIC will take care this is usual and that is their responsibility.
2.Where as OT concerned it is apart from normal working hrs.Think of it if something happens in that context who will be responsible?If you go to ESIC to produce Accident report will they accept as it is?No, they will inquire everything shift time,time and place of accident took place.
If gross >15000 no ESIC
If gross >15000 + OT amt Rs.4000 no ESIC
If Gross Rs.14500 + OT amt Rs.4000=Paying ESIC On Rs.18000
(Consider these factors risk of work,place of work(machinery,chemicals heavy electrical instruments),hrs of work.
According to us Employee and risk upon us matters.
From India, Bangalore
Because we have consider two aspects:
1.Employee should work for 8 hrs a day.If something happens in that time ESIC will take care this is usual and that is their responsibility.
2.Where as OT concerned it is apart from normal working hrs.Think of it if something happens in that context who will be responsible?If you go to ESIC to produce Accident report will they accept as it is?No, they will inquire everything shift time,time and place of accident took place.
If gross >15000 no ESIC
If gross >15000 + OT amt Rs.4000 no ESIC
If Gross Rs.14500 + OT amt Rs.4000=Paying ESIC On Rs.18000
(Consider these factors risk of work,place of work(machinery,chemicals heavy electrical instruments),hrs of work.
According to us Employee and risk upon us matters.
From India, Bangalore
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