Hi All, Can someone please help with the current/sample pay structure applicable for employees covered under ESI. Thanks
From India, Mumbai
From India, Mumbai
Dear,
Please note that ESI is applicable up to Rs. 15,000/- (Gross) to an employee and it is deducted almost from the Gross Salary, except for some specific allowances. If you are providing some allowances on a monthly basis, it will obviously be applicable to all allowances.
Please specify your required pay structure so that we can better assist you.
Regards,
R B Yadav
Advocate
From India, Gurugram
Please note that ESI is applicable up to Rs. 15,000/- (Gross) to an employee and it is deducted almost from the Gross Salary, except for some specific allowances. If you are providing some allowances on a monthly basis, it will obviously be applicable to all allowances.
Please specify your required pay structure so that we can better assist you.
Regards,
R B Yadav
Advocate
From India, Gurugram
Dear Akag, Ceiling Value for ESIC is 15,000 (Gross) w.e.f. 01/05/2010. Employee’s contribution is 1.75% Employer’s contribution is 4.75% Regards, Ms.Mrunal Tambe
From India, Pune
From India, Pune
Dear sirs, suppose if one employee salary 14500/- month as gross. In Feb 2013 if he do over time and get Rs. 1000/- additionally. Shall we pay for Rs. 14500/- or 15500/- to calculate the ESI. Thanks
From India, Secunderabad
From India, Secunderabad
Dear Mr. Raju,
You need to include ESI on 15500.
OVERTIME ALLOWANCE
In the case of the employer, as and when the employer finds the need to have work done expeditiously, in addition to the normal work during the course of the working hours, the employer offers the employee the option to do overtime work after the working hours. When an employee does overtime work, it implies acceptance of the same, thereby establishing an implied contract between the employer and the employee. Both the remuneration received during the working hours and overtime constitute a composite wage, making it a wage within the meaning of Sec.2(22) of the ESI Act. Therefore, contributions are payable on the overtime allowance. However, overtime allowances will only be considered as wages for the purpose of contribution calculation and not for determining the coverage of the employee under the Scheme.
This viewpoint was also upheld by the Supreme Court in its judgment delivered on 6.11.96 in the case of Indian Drugs & Pharmaceuticals Ltd. Vs. ESIC, in Civil Appeal No.2777 of 1980.
(Old instructions issued via memo No.3-1(2)/3(1)/68 dated 31.5.68).
From India, Kota
You need to include ESI on 15500.
OVERTIME ALLOWANCE
In the case of the employer, as and when the employer finds the need to have work done expeditiously, in addition to the normal work during the course of the working hours, the employer offers the employee the option to do overtime work after the working hours. When an employee does overtime work, it implies acceptance of the same, thereby establishing an implied contract between the employer and the employee. Both the remuneration received during the working hours and overtime constitute a composite wage, making it a wage within the meaning of Sec.2(22) of the ESI Act. Therefore, contributions are payable on the overtime allowance. However, overtime allowances will only be considered as wages for the purpose of contribution calculation and not for determining the coverage of the employee under the Scheme.
This viewpoint was also upheld by the Supreme Court in its judgment delivered on 6.11.96 in the case of Indian Drugs & Pharmaceuticals Ltd. Vs. ESIC, in Civil Appeal No.2777 of 1980.
(Old instructions issued via memo No.3-1(2)/3(1)/68 dated 31.5.68).
From India, Kota
Benefits: All are cash benefits except Medical benefit in below mentioned list
• Medical Benefits – Self / Family
• Sickness benefit - Self
• Maternity Benefit - payable for a period of 12 weeks (84 days) on production of Form 18.Maternity bonus is also there. That is Rs.1000 (W.E.F. 01/04/2003) - Self
• Disablement benefit - Self
• Dependent Benefit - Dependants
• Funeral Benefit – Onetime payment of Rs.10, 000 (Amendment – 01.04.2011 earlier it was 5000) to meet funeral expanses of the IP.
From India, Kota
• Medical Benefits – Self / Family
• Sickness benefit - Self
• Maternity Benefit - payable for a period of 12 weeks (84 days) on production of Form 18.Maternity bonus is also there. That is Rs.1000 (W.E.F. 01/04/2003) - Self
• Disablement benefit - Self
• Dependent Benefit - Dependants
• Funeral Benefit – Onetime payment of Rs.10, 000 (Amendment – 01.04.2011 earlier it was 5000) to meet funeral expanses of the IP.
From India, Kota
Call me at 09961266966 to get the components of wages which are reckoned for ESI. VARGHESE MATHEW Base India Cosultanvy Edapazhanji ,Trivandrum 14
From India, Thiruvananthapuram
From India, Thiruvananthapuram
Dear All,
Our construction company takes up work even in areas where ESI is implemented. I have a doubt about whether ESI is applicable for a greenfield project as well, i.e. a project where construction starts from scratch.
Regards,
Ramesh
From India, Bangalore
Our construction company takes up work even in areas where ESI is implemented. I have a doubt about whether ESI is applicable for a greenfield project as well, i.e. a project where construction starts from scratch.
Regards,
Ramesh
From India, Bangalore
Dear Ramesh,
For ESI, if in the beginning of the month you have employed 10 or more employees, then you are eligible for ESI. You must apply for ESI Registration. If the gross salary of all the 10 employees is within Rs. 15,000, ESI contribution is mandatory. If any employee's gross salary is above Rs. 15,000, you can exclude them from ESI contribution.
Regards,
Lakshmi
From India, Bangalore
For ESI, if in the beginning of the month you have employed 10 or more employees, then you are eligible for ESI. You must apply for ESI Registration. If the gross salary of all the 10 employees is within Rs. 15,000, ESI contribution is mandatory. If any employee's gross salary is above Rs. 15,000, you can exclude them from ESI contribution.
Regards,
Lakshmi
From India, Bangalore
Dear Bosa,
If your establishment is covered under the ESI Act and your project is in an implemented area, then ESI is applicable. The nature of your project is immaterial. Alternatively, you may seek exemption from the appropriate government.
Varghese Mathew Baseindia Consultants Trivandrum 14 9961266966
From India, Thiruvananthapuram
If your establishment is covered under the ESI Act and your project is in an implemented area, then ESI is applicable. The nature of your project is immaterial. Alternatively, you may seek exemption from the appropriate government.
Varghese Mathew Baseindia Consultants Trivandrum 14 9961266966
From India, Thiruvananthapuram
Dear Mr. Mathew,
For the benefit of all, please share components to be reckoned for ESI.
Thanks,
Dear sir,
Greetings for the day,
As we are all aware that the salary ceiling for the deduction of ESIC is Rs. 15,000/- per month. Above that, it should be exempted. The components considered for the deduction of ESIC contribution should be the whole fixed allowances, inclusive of overtime. Any reimbursements should not be part of ESIC deduction.
Thanks & regards,
Sumit Kumar Saxena
From India, Ghaziabad
For the benefit of all, please share components to be reckoned for ESI.
Thanks,
Dear sir,
Greetings for the day,
As we are all aware that the salary ceiling for the deduction of ESIC is Rs. 15,000/- per month. Above that, it should be exempted. The components considered for the deduction of ESIC contribution should be the whole fixed allowances, inclusive of overtime. Any reimbursements should not be part of ESIC deduction.
Thanks & regards,
Sumit Kumar Saxena
From India, Ghaziabad
Please read chapter V11 of ESIC revenue manual and ESICs circular on the subject issued in 2004. Varghese Mathew
From India, Thiruvananthapuram
From India, Thiruvananthapuram
ESI General Amendment Regulations 2010 w.e.f. 1.1.2011
- The highlight of the notification is that the parents of members whose monthly income does not exceed Rs 5000 will now be eligible to get medical benefits from ESIC, earlier it was confined to parents whose income did not exceed Rs 1500 per month.
- Similarly, an unmarried insured person whose parents are not alive can name the minor brothers and or sisters who are fully dependent on the income of the insured as beneficiaries.
- Form 7 replaced by form 6 (Register of Employees Contribution).
- The dependent age has been changed from 18 to 25 years. Like form 15/form 16 / form 24 (dependent benefits form).
- Form 12 – Accident report form – new column inserted – in case the accident happened while commuting from residence to the place of employment for duty or from place of employment to residence after performing duty-
1- Time & place of accident
2- Duty Hours
3- Mode of transport.
- The word Insured person substituted by employee.
ESI General Amendment Regulations 2011 w.e.f. 1.4.2011
- Funeral Benefit is now 10000, earlier it was 5000.
From India, Kota
- The highlight of the notification is that the parents of members whose monthly income does not exceed Rs 5000 will now be eligible to get medical benefits from ESIC, earlier it was confined to parents whose income did not exceed Rs 1500 per month.
- Similarly, an unmarried insured person whose parents are not alive can name the minor brothers and or sisters who are fully dependent on the income of the insured as beneficiaries.
- Form 7 replaced by form 6 (Register of Employees Contribution).
- The dependent age has been changed from 18 to 25 years. Like form 15/form 16 / form 24 (dependent benefits form).
- Form 12 – Accident report form – new column inserted – in case the accident happened while commuting from residence to the place of employment for duty or from place of employment to residence after performing duty-
1- Time & place of accident
2- Duty Hours
3- Mode of transport.
- The word Insured person substituted by employee.
ESI General Amendment Regulations 2011 w.e.f. 1.4.2011
- Funeral Benefit is now 10000, earlier it was 5000.
From India, Kota
We have some employees who were once members of ESI from 1975 to 1985. As their salaries were revised, they were given a medical allowance instead of ESI, as per the ESI coverage limit set by the company. Now, as they are about to superannuate, they will receive some pension from their pension fund, approximately Rs. 1700 per month, but they will not receive any medical benefits from the company.
We want to assist our employees who are superannuating with their medical issues and would like to know:
1. Can individuals over the age of 58 or 60 years avail ESI medical benefits along with their families?
2. If yes, what amount will they have to contribute towards that?
3. Whom should they approach if residing in Delhi?
Thanks/Regards,
AK Mathur
From India, Delhi
We want to assist our employees who are superannuating with their medical issues and would like to know:
1. Can individuals over the age of 58 or 60 years avail ESI medical benefits along with their families?
2. If yes, what amount will they have to contribute towards that?
3. Whom should they approach if residing in Delhi?
Thanks/Regards,
AK Mathur
From India, Delhi
Mr. Mathur,
ESI medical benefits are available to those who are superannuated while being an insured person after being in insurable employment for three years. Such person shall pay Rs10/- per month for one year in advance, each year. This facility is not available to employees who were in ESIS years ago.
Varghese Mathew Baseindia Consultants Trivandrum 14 (9961266966)
From India, Thiruvananthapuram
ESI medical benefits are available to those who are superannuated while being an insured person after being in insurable employment for three years. Such person shall pay Rs10/- per month for one year in advance, each year. This facility is not available to employees who were in ESIS years ago.
Varghese Mathew Baseindia Consultants Trivandrum 14 (9961266966)
From India, Thiruvananthapuram
Dear Mr. mathur,
Please find the explanation on your query:-
under Section 56 of the Act - Medical Benefits to Retired & Disabled IP and his Spouse – Scheme provides comprehensive medical cover to the superannuated and disabled IP and their spouse on pre payment of nominal contribution of Rs. 120 p.a. (10 p.m.) per couple provided that IP should be continuous contributor to the scheme at least 5 years before the retirement.
From India, Kota
Please find the explanation on your query:-
under Section 56 of the Act - Medical Benefits to Retired & Disabled IP and his Spouse – Scheme provides comprehensive medical cover to the superannuated and disabled IP and their spouse on pre payment of nominal contribution of Rs. 120 p.a. (10 p.m.) per couple provided that IP should be continuous contributor to the scheme at least 5 years before the retirement.
From India, Kota
Dear Akhil Kumar, HR Consultant,
Thank you for your prompt reply. If the employees had been a member of ESI for a period of five years, from whom can we get it certified? As these employees were members during 1975-1985, and there are no records with us for that period.
Regards,
AK Mathur
From India, Delhi
Thank you for your prompt reply. If the employees had been a member of ESI for a period of five years, from whom can we get it certified? As these employees were members during 1975-1985, and there are no records with us for that period.
Regards,
AK Mathur
From India, Delhi
Your employees mentioned in the post are not eligible for benefits. Varghese Mathew 09961266966
From India, Thiruvananthapuram
From India, Thiruvananthapuram
Also I would like to ask one query that, ESIC deduction on vendor, part time job by external party and deduction on it?
From India, Nagpur
From India, Nagpur
Bittu,
By "vendor," if you mean those who are supplying goods against a purchase order, then you need not worry about their ESI. If any external party is doing part-time work on your premises under your control and supervision, then you are liable for ESI.
VARGHESE MATHEW
9961266966
From India, Thiruvananthapuram
By "vendor," if you mean those who are supplying goods against a purchase order, then you need not worry about their ESI. If any external party is doing part-time work on your premises under your control and supervision, then you are liable for ESI.
VARGHESE MATHEW
9961266966
From India, Thiruvananthapuram
Dear AK Mathur,
We have some employees who were once members of ESI from 1975 to 1985. When their salaries were revised, they were given a medical allowance instead of ESI as per the ESI coverage limit set by the company. As they are nearing superannuation, they will receive some pension from their pension fund, approximately Rs. 1700 per month, but they will not receive any medical benefits from the company.
We aim to support our employees who are retiring concerning their medical needs and would like to inquire about the following:
1. Can individuals over the age of 58/60 avail ESI medical benefits for themselves and their families?
2. If so, what amount would they need to contribute towards this benefit?
3. Whom should they approach if they are residing in Delhi?
For the benefit of retiring employees, medical facilities under rules 60/61 of ESIC will be provided at a nominal rate of Rs. 120.00 per annum. Terms and conditions apply. Please contact the ESIC branch manager for further details.
Thank you.
Regards,
AK Mathur
From India, Calcutta
We have some employees who were once members of ESI from 1975 to 1985. When their salaries were revised, they were given a medical allowance instead of ESI as per the ESI coverage limit set by the company. As they are nearing superannuation, they will receive some pension from their pension fund, approximately Rs. 1700 per month, but they will not receive any medical benefits from the company.
We aim to support our employees who are retiring concerning their medical needs and would like to inquire about the following:
1. Can individuals over the age of 58/60 avail ESI medical benefits for themselves and their families?
2. If so, what amount would they need to contribute towards this benefit?
3. Whom should they approach if they are residing in Delhi?
For the benefit of retiring employees, medical facilities under rules 60/61 of ESIC will be provided at a nominal rate of Rs. 120.00 per annum. Terms and conditions apply. Please contact the ESIC branch manager for further details.
Thank you.
Regards,
AK Mathur
From India, Calcutta
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