The gross salary of my casual employees is 18000/-per month, however due to shortage of work i am able to provide them work for only 20 days, hence their earned wages is 12000/- per month since the last one year.
will they be eligible to get ESI benefits or ESI shall be discontinued due to defined gross wages being higher than 15000.
I need clarity weather cap on ESI eligibility is on earned wages or eligible salary.
From India
1will they be eligible to get ESI benefits or ESI shall be discontinued due to defined gross wages being higher than 15000.
I need clarity weather cap on ESI eligibility is on earned wages or eligible salary.
From India
Dear DEEPAKKHEMANI,
Cap on ESI eligibility is not on earned wages but on rate of wages. In your case, earned wages of your workers are Rs. 12000/- every month constantly since last one year. You say that the workers are working every month only for 20 days constantly and therefore, their earned wages are Rs. 12000/- as against rate of Rs. 18000/- per month.
Now the question is, whether you should de-cover the workers from ESIS or continue to cover them under ESIS.
According to me, you should continue to cover them under ESIS. You are giving them work of 20 days in a month constantly and therefore, their rate of wages are Rs. 12000/ per month and month is of 20 days.
One may differ with me. This is my opinion based on the logic as stated above.
From India, Mumbai
Cap on ESI eligibility is not on earned wages but on rate of wages. In your case, earned wages of your workers are Rs. 12000/- every month constantly since last one year. You say that the workers are working every month only for 20 days constantly and therefore, their earned wages are Rs. 12000/- as against rate of Rs. 18000/- per month.
Now the question is, whether you should de-cover the workers from ESIS or continue to cover them under ESIS.
According to me, you should continue to cover them under ESIS. You are giving them work of 20 days in a month constantly and therefore, their rate of wages are Rs. 12000/ per month and month is of 20 days.
One may differ with me. This is my opinion based on the logic as stated above.
From India, Mumbai
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SC 09 ESI IMP on Applicability.p df
Changes in the Applicability and Coverage of ESI Scheme under the Code on Social Security.doc