Hi All,
I've one doubt regarding E.SI ....
If we employee someone as a trainee and dont take them on company rolls. Will they get an exemption from E.SI if we pay them a salary in the form of Stipend? Is it Legal?
Is there any way we can give them this exemption??
Regards
Gunjan
From United States,
I've one doubt regarding E.SI ....
If we employee someone as a trainee and dont take them on company rolls. Will they get an exemption from E.SI if we pay them a salary in the form of Stipend? Is it Legal?
Is there any way we can give them this exemption??
Regards
Gunjan
From United States,
Gunjan...as per the act, if an employee is getting a base salary of Rs. 7,500/- or above is not covered under act. Secondly, if the salary is less than 7,500/- but the company is giving him benefits, which are superior to ESI Benefits...then also he is not covered under ESI.
If the person is not getting salary (Salary as explained by Income Tax Act and ESI Act) then also he is not covered under the Act and is exempted. That means...getting stipend is exempted from the provision of ESI Act.
Regards
Sanjeev Sharma
(Blog: http://sanjeevhimachali.blogspot.com/)
From India, Mumbai
94If the person is not getting salary (Salary as explained by Income Tax Act and ESI Act) then also he is not covered under the Act and is exempted. That means...getting stipend is exempted from the provision of ESI Act.
Regards
Sanjeev Sharma
(Blog: http://sanjeevhimachali.blogspot.com/)
From India, Mumbai
Dear all,
ESI has increased its limit from Rs.7,500/- to Rs. 10,000/- w.e.f 01 Oct'06. For more info on this go to the following URL.
http://www.esic.nic.in
thanks
rekha
From India, Delhi
ESI has increased its limit from Rs.7,500/- to Rs. 10,000/- w.e.f 01 Oct'06. For more info on this go to the following URL.
http://www.esic.nic.in
thanks
rekha
From India, Delhi
Dear Gunjan,
As per ESI Act, it applies even to Domestic Servants, which includes casuals, contractuals, but excludes Apprentices appointed under Trade Apprentice Act.
When if a person appointed as trainee, he should be paid stipend - No one in the Organized set-up should be allowed to get exploited on his work extraction by any of the nomenclature given to him.
However, it is been very sure that ESI should be deducted on Salary alone (Compensation paid for work done) and not the stipend (which is monetary inducing measure to increase performance during training).
I appreciate Ms. Rekha for giving updated knowledge on ESI Coverage upward revision to Rs.10000/- from Rs.7500.
Regards
Jaikumar Ranganathan
As per ESI Act, it applies even to Domestic Servants, which includes casuals, contractuals, but excludes Apprentices appointed under Trade Apprentice Act.
When if a person appointed as trainee, he should be paid stipend - No one in the Organized set-up should be allowed to get exploited on his work extraction by any of the nomenclature given to him.
However, it is been very sure that ESI should be deducted on Salary alone (Compensation paid for work done) and not the stipend (which is monetary inducing measure to increase performance during training).
I appreciate Ms. Rekha for giving updated knowledge on ESI Coverage upward revision to Rs.10000/- from Rs.7500.
Regards
Jaikumar Ranganathan
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Declaration Form for Exemption from TDS.doc
Order No. 1-2018 Extension of date for submitting the statement in FORM GST TRAN-2.pdf