Enhancement of wage ceiling for coverage under the ESI Act 1948 from Rs.10,000/- to Rs.15,000/-
(Querist) 14 October 2010
This query is : Open
The Government of India, Ministry of Labour & Employment vide their Notification No.S-38025/04/2010-SS.I dated 20.4.2010 have amended Rule 50 of ESI (Central) Rules, 1950 as a result the wage ceiling for coverage of employees under the Act has been enhaned from Rs.10,000/- to Rs.15,000/- w.e.f.1st May 2010. I need clarification on the following:
1) Which are the components that should be taken to consider Gross salary. Of Course ESI premium is calculated on basic and HRA.
2) As per the provisions of Regulation 4 of ESI (General) Regulations 1950, the first shorter contribution period in respect of all such newly covered employees shall commence from 1st May, 2010 and the corresponding benefit period for them shall commence only after expiry of a period of nine months from the date of such employment.
My query is: If the contribution period is from April to September, and if an employee was under ESI prior to end April 2010, and his Salary has been increased from 1st May from Rs.10,000/- to Rs.16,000/- whether such employee still has to contribute to ESI based on earlier contribution period i.e.April to Sep.2010 based on his earlier slab of gross salary.Please clarify. N.Murali.