[font=""trebuchet ms""] Those who are getting more than 10000/- as a gross salary they will not be covered under the ESIC act. The period of contribution starts from 1 April & 1st October of every year. If Employee is getting 9000/- in the month of April and you incremented his salary in the month of May i.e. more than 10000/- he is eligible for deduction under ESIC up to the 30th September then he will get the exemption.[/font]
If your salary is below than 10,000 in oct-07, employer will deduct the ESI.
In case you got an increment between oct-march and now you are getting above 10'000 as you are saying even then employer will deduct the contribution till march-2008 as this is a statutory rule however they will stop deducting the same April onwards.