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Contributions
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Contribution
is the amount payable to the
Corporation by the Principal Employer
in respect of an employee and
comprises the amount payable by
the employee and the employer.
It is obligatory on the part of the employer to calculate and remit ESI Contribution comprising of employers' share 4.75% plus employees' share of 1.75% which is payable on or before 21st of the following month, to the month to which the salary relates. If the employee is drawing upto
Rs.100/- as daily average wage, he is exempted from the payment of his share of contribution. The employer is however to pay employer's share of 4.75% of the salary received/receivable by the employee.
Recovery of contribution
In
the first instance the Principal
Employer is to pay employers'
share
of contribution in respect of every
employee whether employed directly
or through immediate employer. The
employees' share may thereafter,
be recovered by making
deduction from their wages for the
wage period for which contribution
is, however is payable. No
such deduction may be made from
any wages other than those
relating to the period in respect
in which contribution is
payable.
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