Hello all,
We have already taken healthcare insurance and personal accident cover of a private insurance company, for all of our employees. I wanted to know if is ESI mandatory even after providing private company\'s insurance cover?
From India, Chennai
We have already taken healthcare insurance and personal accident cover of a private insurance company, for all of our employees. I wanted to know if is ESI mandatory even after providing private company\'s insurance cover?
From India, Chennai
Dear Member,
The provisions contained in Employees' State Insurance Act, 1948 are compulsory provided the establishment/factory is located within implemented area under section 1(3) or is of such category as notified under section 1(5) by appropriate government and employs minimum numbers of persons as laid down in said Act.
Obtaining of insurance cover from Insurance Companies is optional and is no base for seeking exemption from operation of said Act.
From India, Noida
923The provisions contained in Employees' State Insurance Act, 1948 are compulsory provided the establishment/factory is located within implemented area under section 1(3) or is of such category as notified under section 1(5) by appropriate government and employs minimum numbers of persons as laid down in said Act.
Obtaining of insurance cover from Insurance Companies is optional and is no base for seeking exemption from operation of said Act.
From India, Noida
Thanks Mr. Mehta for your reply. I would be happy if you could guide me on two another points regarding ESI.
First, what is eligibility criteria for ESIC registration? Our is a partnership firm and we have staff strength of 31 and hardly 3-4 of them are earning below Rs. 15,000/-; remaining all are above Rs. 15,000/-. Is it mandatory for us to register with ESIC even if only 3-4 are earning below Rs. 15,000/-?
Second is "How is ESI calculated?" On monthly gross or monthly CTC?
Thanking in anticipation.
From India, Chennai
First, what is eligibility criteria for ESIC registration? Our is a partnership firm and we have staff strength of 31 and hardly 3-4 of them are earning below Rs. 15,000/-; remaining all are above Rs. 15,000/-. Is it mandatory for us to register with ESIC even if only 3-4 are earning below Rs. 15,000/-?
Second is "How is ESI calculated?" On monthly gross or monthly CTC?
Thanking in anticipation.
From India, Chennai
Dear Member,
With reference to your raising of further issues in above remarks, I may indicate my opinion as follows:-
1. The nature of incorporation of factory/establishment i.e. whether proprietorship, partnership or a company does not matter so far coverage under ESI Act, 1948 is concerned. What is important- whether the establishment is a "factory' as defined under said Act. Further in case of other establishments it is also important, whether the unit is of such category for which the appropriate Government has extended the provisions of Act to such type of establishments viz.-shops, hotels and restaurants, cinemas etc.etc.
2. Once the factory/establishment is covered under said Act, only the employees getting wages upto and including Rs.15000/- per month will be coverable under said Act. Even if there is only one employee upto Rs. 15000/- salary, you are required to get ESI Code Number.
3. ESI contribution is payable on "wages" as defined under said Act and for this purpose the payments made in the shape of yearly bonus, actual reimbursement of transport charges etc. are not part of "wages".
For details, I will suggest you to please contact the nearest Branch Manager / Social Security Officer of ESIC of your area and discuss the matter including coverage of your unit under said Act. You can also download literature or guidelines etc. from the website of ESIC Hqrs or appropriate Regional Office of ESIC.
From India, Noida
With reference to your raising of further issues in above remarks, I may indicate my opinion as follows:-
1. The nature of incorporation of factory/establishment i.e. whether proprietorship, partnership or a company does not matter so far coverage under ESI Act, 1948 is concerned. What is important- whether the establishment is a "factory' as defined under said Act. Further in case of other establishments it is also important, whether the unit is of such category for which the appropriate Government has extended the provisions of Act to such type of establishments viz.-shops, hotels and restaurants, cinemas etc.etc.
2. Once the factory/establishment is covered under said Act, only the employees getting wages upto and including Rs.15000/- per month will be coverable under said Act. Even if there is only one employee upto Rs. 15000/- salary, you are required to get ESI Code Number.
3. ESI contribution is payable on "wages" as defined under said Act and for this purpose the payments made in the shape of yearly bonus, actual reimbursement of transport charges etc. are not part of "wages".
For details, I will suggest you to please contact the nearest Branch Manager / Social Security Officer of ESIC of your area and discuss the matter including coverage of your unit under said Act. You can also download literature or guidelines etc. from the website of ESIC Hqrs or appropriate Regional Office of ESIC.
From India, Noida
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ESI contribution rates lowering.pdf