Dear Friend Do not worry. pl. contact the Enforcement Officer at Regional ESI office. he will guide u regards alphonse
From India, Madras

Dear Prema,

ESI coverage is mandatory for employees whose gross salary is less than Rs. 15,000/-.
You may contact the local ESI office to obtain the necessary forms and start enrolling your company for coverage of employees under ESI.
For clarifications, the respective ESI authority will guide you.

With regards,
L. Kumar

From India, Madras

Hi friends, I am working as an Assistant Officer (HR & Admin) in a construction company. I have a small doubt, i.e., is the ESI Act applicable at the site places where projects are running? If not applicable, why? Please tell me the reason.

Thank you.

From India, Mumbai

Dear all,

Ours is a biotech company. We have never been covered under ESI previously. Since the slab has changed, I think the time has come for us to enroll in ESI. We have a total strength of 120 employees, with 17 employees whose gross salary is less than 15,000. Now, please guide me on whether it is mandatory to cover our employees under ESI. If yes, what is the procedure? We are based in Chennai. Please guide me.

If your company is not covered under ESI until now, first, you should apply for a code number with the ESI authority. Meanwhile, you should get the declaration/nomination forms from the 17 employees and start deducting ESI contributions from their salary at 1.75%. Deposit the same along with the company's contribution at 4.75% of the total salary on which ESI has been recovered from the 17 employees into the State Bank of India.

On the ESI challan, under the code number, you can write "applied for" to avoid late remittance interest and damages.

From India, Chandigarh


From India, Madras


From India, Madras

Dear Vasant,

Can you please mail me the relevant part of the notification which states that the number of employees, irrespective of their salary levels, are to be taken into consideration for the purposes of ESI coverage?

It seems rather unlikely. For instance, there are 100 employees in the organization. All of them are drawing gross salaries of Rs. 20,000 and above. What would be the relevance of obtaining a Code Number under the ESI Scheme and finding that the said Scheme is not applicable to any of the employees?

My ID is vasantnair10@gmail.com.

I look forward to your response.

Thank You,

Vasant Nair

Dear Vasant,

The details given below were originally posted by Shri K V Ramanamoorthy, Dy. Director (ESIC), and an authority on this subject.

Factory definition under ESI Amendment Act 2010:

In the amended definition of Factory under Section 2(12), the concepts of 'wages' and 'power' have been deleted. Section 2(12)(a) has been modified, and 2(12)(b) has been deleted.

The amended definition reads as follows:

Factory: "factory" means any premises, including the precincts thereof, whereon ten or more persons are employed or were employed on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on or is ordinarily so carried on, but does not include a mine subject to the operation of the Mines Act 1952 or a railway running shed.

The effect of this amendment that came into existence from the 1st day of June 2010 is that premises engaged in a manufacturing process and employing 10 or more persons stand covered under the Act. With the deletion of the words 'wages', all employees employed irrespective of payment of wages can now be counted for the minimum number of 10.

Deletion of the words 'power' and deletion of clause (b) make all manufacturing units coverable irrespective of the usage of power if they employ 10 or more persons.

With this amendment, more units are expected to come into the fold of ESI from 1st June 2010.

Hope this would dispel your doubts.

Regards,

Ramesh

From India, Madras

Hi Suparna,

As per the earlier act, the threshold limit for ESIC was ₹10,000. For employees having less than ₹10,000, the company has to deduct the employees' share and also pay the employer's share for ESIC. If your salary was more than ₹10,000 in the last financial year, then there should be no ESIC deductions. But from this year, it's mandatory. The company has to deduct 1.75 percent from your salary as an employee's contribution.

From India, Mumbai

If for any region ESIC is applicable, can the Employee Compensation Policy be taken? Or should ESIC be taken? Are there any rules for ESIC? Does it apply to both permanent employees and contract labor?
From United States, Santa Clara

Thanks a lot for the update!!!

I worked for Infosys BPO, and they deducted ESI from June 2009, even when my gross salary was more than 10,000. Can you please advise me on the way I can take action against this.

Thank you.

From India, Bangalore

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