Dear seniors,
I have a query on ESI. I want to know that ESI would be applicable on IT industry or not. If it is applicable then please tell me the exact date of coverage on software industries. One thing more suppose if 10-15 employees are getting less than 10 K then it would be applicable or not.
I don’t have much information about ESI. I want to know the things in brief. Please help me out.
Thanks
Suman
From India, Gurgaon
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12I have a query on ESI. I want to know that ESI would be applicable on IT industry or not. If it is applicable then please tell me the exact date of coverage on software industries. One thing more suppose if 10-15 employees are getting less than 10 K then it would be applicable or not.
I don’t have much information about ESI. I want to know the things in brief. Please help me out.
Thanks
Suman
From India, Gurgaon
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Yes, ESI is very much applicable to IT/ITES industries.
If the gross salary of the employee is less than or equal to 10000/- per month, then ESI will be applicable. It doesn't matter how many employees are in the less than 10000/- salary bracket.
If you want to avoid ESI for 10-15 employees, you can increase the gross salary of those employees to take them out of ESI.
Regards, Amit
From India, New Delhi
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If the gross salary of the employee is less than or equal to 10000/- per month, then ESI will be applicable. It doesn't matter how many employees are in the less than 10000/- salary bracket.
If you want to avoid ESI for 10-15 employees, you can increase the gross salary of those employees to take them out of ESI.
Regards, Amit
From India, New Delhi
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Dear Suman,
ESI is applicable for a software company from day one. If an establishment has 20 or more total employees, in your case, this act will apply. Applicability in respect of the number of employees is based on the total number of employees, not eligible employees as mentioned by you.
If you have a total of 25 employees, where only 15 are getting less than 10k, still this act will apply.
Thank you,
J.S. Malik
From India, Delhi
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ESI is applicable for a software company from day one. If an establishment has 20 or more total employees, in your case, this act will apply. Applicability in respect of the number of employees is based on the total number of employees, not eligible employees as mentioned by you.
If you have a total of 25 employees, where only 15 are getting less than 10k, still this act will apply.
Thank you,
J.S. Malik
From India, Delhi
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dear suman if gross salary is 10 k or below than only ESI applicable.gross salary is always inclusive of employee share of PF. tks j s malik
From India, Delhi
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From India, Delhi
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Hi Suman,
Gross Salary equals the sum of all earnable components of the Salary Structure that are fixed (e.g., Incentives, Bonus, etc., do not add up while calculating Gross).
To specifically answer your question, if you meant "inclusive of PF" as the Employer's portion of the PF, then Gross Salary is 10500/- minus the Employer's PF.
To find out whether ESI is applicable, add up all components of the salary that appear on the left of the payslip (Earnings, considering that no LWP is deducted in that month). Also, add any deferred payable component that is not mentioned on the payslip but accrues on a monthly basis, for example, Medical Reimbursement, LTA, etc. If the sum equals or is less than 10000/-, the employee falls into the ESI bracket.
Regards,
Neeraj K. Singh
From India, Mumbai
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Gross Salary equals the sum of all earnable components of the Salary Structure that are fixed (e.g., Incentives, Bonus, etc., do not add up while calculating Gross).
To specifically answer your question, if you meant "inclusive of PF" as the Employer's portion of the PF, then Gross Salary is 10500/- minus the Employer's PF.
To find out whether ESI is applicable, add up all components of the salary that appear on the left of the payslip (Earnings, considering that no LWP is deducted in that month). Also, add any deferred payable component that is not mentioned on the payslip but accrues on a monthly basis, for example, Medical Reimbursement, LTA, etc. If the sum equals or is less than 10000/-, the employee falls into the ESI bracket.
Regards,
Neeraj K. Singh
From India, Mumbai
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Hey Suman,
First, you should understand why ESIC is a benefit given to employees.
Why?
The answer is to provide them with social security.
As you know, ESIC has various benefits, so it is the prime responsibility of every employer to have ESIC for those employees who are receiving a gross salary of Rs. 10,000, excluding washing allowance, okay.
If your employees are earning more than Rs. 10,000, then you may opt for Group Mediclaim/Hospitalisation from any insurance service TPA provider.
Thanks,
Shine
From India, Bhopal
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First, you should understand why ESIC is a benefit given to employees.
Why?
The answer is to provide them with social security.
As you know, ESIC has various benefits, so it is the prime responsibility of every employer to have ESIC for those employees who are receiving a gross salary of Rs. 10,000, excluding washing allowance, okay.
If your employees are earning more than Rs. 10,000, then you may opt for Group Mediclaim/Hospitalisation from any insurance service TPA provider.
Thanks,
Shine
From India, Bhopal
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ESI is applicable to IT if gross salary is 10 k then esi is applicable, otherwise no ESI would be applied.. regards, satish
From India, Bangalore
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From India, Bangalore
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Dear [User],
The software sector is treated analogously to that of the manufacturing sector and not as a service sector concerning ESI coverage. Therefore, if there are 10 coverable employees (meaning employees or trainees whose earned gross is less than ₹10,001 per month on any day), then your company is coverable from that date onwards.
Please note that for software development (IT), the threshold limit is 10 employees, whereas for BPO (ITeS), the threshold limit is 20 employees for coverage under ESI.
Thank you.
From India, Madras
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The software sector is treated analogously to that of the manufacturing sector and not as a service sector concerning ESI coverage. Therefore, if there are 10 coverable employees (meaning employees or trainees whose earned gross is less than ₹10,001 per month on any day), then your company is coverable from that date onwards.
Please note that for software development (IT), the threshold limit is 10 employees, whereas for BPO (ITeS), the threshold limit is 20 employees for coverage under ESI.
Thank you.
From India, Madras
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