The minimum wage limit for ESIC is set to Rs.15000/- per month effective April'10. Does Rs.15000/- refer to gross salary?
The act says atleast a 20member establishment. Does this refer to:
1. 20 members whose salary is below 15000/- per month OR
2. 20 members irrespective of what the salary is OR
3. What if there are 100 people out of which less than 20 people's salary is less than 15000 per month
From India, Delhi
The act says atleast a 20member establishment. Does this refer to:
1. 20 members whose salary is below 15000/- per month OR
2. 20 members irrespective of what the salary is OR
3. What if there are 100 people out of which less than 20 people's salary is less than 15000 per month
From India, Delhi
Dear Friend,
If an employee gross salary is equal Rs. 15000/- or below he will comes under ESI purview with effective from 1st May, 2010.
To my knowledge if company holds 20 employees or more than that and if they are in ESI purview, company should be registered under ESI act as per norms . Once covered under ESI act even contribution members are below 20 still company has to comply ESI rules. I mean company has to deduct ESI from employees ( 1.75 % ) and has to contribute employer contribution ( 4.75 %) according to ESI norms.
I think you better visit ESIC-Coverage <link updated to site home> ( Search On Cite | Search On Google ) site I am sure you will get sufficient information on this subject. My request is please use search button there are many same kind of questions were posted earlier in this forum, I hope you may get appropriate answer for your query.
I wish you all the best.
From India, Hyderabad
85If an employee gross salary is equal Rs. 15000/- or below he will comes under ESI purview with effective from 1st May, 2010.
To my knowledge if company holds 20 employees or more than that and if they are in ESI purview, company should be registered under ESI act as per norms . Once covered under ESI act even contribution members are below 20 still company has to comply ESI rules. I mean company has to deduct ESI from employees ( 1.75 % ) and has to contribute employer contribution ( 4.75 %) according to ESI norms.
I think you better visit ESIC-Coverage <link updated to site home> ( Search On Cite | Search On Google ) site I am sure you will get sufficient information on this subject. My request is please use search button there are many same kind of questions were posted earlier in this forum, I hope you may get appropriate answer for your query.
I wish you all the best.
From India, Hyderabad
Dear Anjana Esic Limit is Rs. 15,00.00/- gross salary and it is applicable from May-10 not from Apr.-10.
From India, New Delhi
From India, New Delhi
For coverage purpose employees drawing Rs 15000 only will be covered. Therefore, if all the employees or less than 10 employees (20 for establishments not being a factory) are drawing more than Rs 15000 per month as salary then the establishment will not be covered. Salary for this purpose means actual monetary salary and not the "CTC"
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Dear All, please any one can help me out on factories act and what are the statutories to be maintained once factories act amended. mani
From India, Madras
From India, Madras
Dear Ms. Anjana
The First two are already answered
Instead of having some tension, try increase the others salary also above Rs.15000/- (There family will shower their blessings on you).
If you register your company under ESI Act, then it is punishment for us (IR People) only. We have to manage them now and then eventhough we are paying the ESI dues correctly, they will come for inspection for want of some important documents. (i.e., refer Important Document meaning from the Tamil Film - Indian, Hindi Film Hindustani (Starrer Kamal Hasan))
With warm regards
S. Bhaskar
9099024667
From India, Kumbakonam
The First two are already answered
Instead of having some tension, try increase the others salary also above Rs.15000/- (There family will shower their blessings on you).
If you register your company under ESI Act, then it is punishment for us (IR People) only. We have to manage them now and then eventhough we are paying the ESI dues correctly, they will come for inspection for want of some important documents. (i.e., refer Important Document meaning from the Tamil Film - Indian, Hindi Film Hindustani (Starrer Kamal Hasan))
With warm regards
S. Bhaskar
9099024667
From India, Kumbakonam
This is not a very good suggestion, that too from an HR professional.
I am not too sure if the last part of the solution offerred is a serious effort or is it meant to be some kind of jest/humour!!!!
Vasant Nair
From India, Mumbai
I am not too sure if the last part of the solution offerred is a serious effort or is it meant to be some kind of jest/humour!!!!
Vasant Nair
From India, Mumbai
Dear ......, Esic says that any employee who is getting less then 15001 is coming under Esi and Esi will be deduct on Gross . Only 11 Person is required to take the new Esic No. Thanks Sandeep Gupta
From India, Delhi
From India, Delhi
Dear All,
Pl note that there is an amendment in ESI Act which says that w e f 01.06.2010
a Factory or Establishment with 10 Employees (Irrespective coverable Employees) have to register under the Act.Even if all the 10 Employees are exempted, still you have to register under the act and submit NIL return every half year.
Similarly if only one out of 10 is below 15000/- you have to pay contribution for him.
From India, Madras
Pl note that there is an amendment in ESI Act which says that w e f 01.06.2010
a Factory or Establishment with 10 Employees (Irrespective coverable Employees) have to register under the Act.Even if all the 10 Employees are exempted, still you have to register under the act and submit NIL return every half year.
Similarly if only one out of 10 is below 15000/- you have to pay contribution for him.
From India, Madras
Dear Friend,
To answer your query I would say that ESI will be applicable
i)to employees drawing monthly salary up to Rs.15,000/-
ii) the establishment/factory(excluding a seasonal factory) has to employ 10 or more persons (in case it is working with the aid of power)and 20 or more persons (in case it is working without the aid of power),on any day of the preceding 12 months.
So to sum it up suppose there are 25 employees in a factory,operating without power,but out of them,if 16 people are earning more than 15k per month,i.e.(25-16)=9 people are earning up to 15k then ESI will not be applicable to that establishment and hence will not cover any of the employees.
Hope this information will serve your purpose.
GoodLuck.
Debasmita Nath
From India, Calcutta
To answer your query I would say that ESI will be applicable
i)to employees drawing monthly salary up to Rs.15,000/-
ii) the establishment/factory(excluding a seasonal factory) has to employ 10 or more persons (in case it is working with the aid of power)and 20 or more persons (in case it is working without the aid of power),on any day of the preceding 12 months.
So to sum it up suppose there are 25 employees in a factory,operating without power,but out of them,if 16 people are earning more than 15k per month,i.e.(25-16)=9 people are earning up to 15k then ESI will not be applicable to that establishment and hence will not cover any of the employees.
Hope this information will serve your purpose.
GoodLuck.
Debasmita Nath
From India, Calcutta
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.
Minimum Wage of UP & UK.pdf