| 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.50/-
as daily average wage, he is exempt 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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