Salary breakup for ESIC paying employees on CTC

Ruchita (Querist) 07 September 2009 This query is : Resolved
I want to know the salary breakup for ESIC paying employee if they are paid salary as per CTC. Please let me know about it as soon as possibleriven

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Manish Singh (Expert) 07 September 2009
Dear Ms Ruchita,
Under the ESI Act, wage ceiling is Rs. 10,000/- which does not include the following only;
1. Any contribution paid by the employer to any pension fund or provident fund, or under ESI Act.
2. Any travelling allowance or the value of any travelling concession.
3. Any sum paid to the person employed to defray special expenses entitled to him by the nature of his employment or
4. Any gratuity payable on discharge
5. it also does not include bonus , tips etc.

if even after deduction of the avove said allowances, the wages/ salary come below Rs. 10000, he will fall under the ESI mandatorily otherwise not.

the contribution on the part of employer is 4.75 % and the employee is 1.75%riven