Dear Atomz
This is a useful update on contribution. Rule 52 does not really fix any minimum wage limit for employee to be eligible for ESI benefit but it only exempts the employee from paying his share of contribution if his average daily wage is Rs100/- or less. However, the employer is liable to pay at 4.75% of such daily average wage. That means the Act retains the employer's liability irrespective of the wage of the employee. Nevertheless, this is a useful update from your side.
B.Saikumar
HR & Labour Law consultant
Chipinbiz Consultancy. Pvt.Ltd
Mumbai
Tel: 022-28324234
From India, Mumbai
54This is a useful update on contribution. Rule 52 does not really fix any minimum wage limit for employee to be eligible for ESI benefit but it only exempts the employee from paying his share of contribution if his average daily wage is Rs100/- or less. However, the employer is liable to pay at 4.75% of such daily average wage. That means the Act retains the employer's liability irrespective of the wage of the employee. Nevertheless, this is a useful update from your side.
B.Saikumar
HR & Labour Law consultant
Chipinbiz Consultancy. Pvt.Ltd
Mumbai
Tel: 022-28324234
From India, Mumbai
Dear sir,
Good after noon
Recently i am leave the my old job and i what to transfer my P.F account to my new one company please bee advice how can i do that b'coz my old company has not support me on this matter .
your help and advice make me more comfortable.
thanks & regds
chetan tanna
Gandhidham -kutch.
Gujart - pin 370 001
09429947978
09979797404
From India, Mumbai
Good after noon
Recently i am leave the my old job and i what to transfer my P.F account to my new one company please bee advice how can i do that b'coz my old company has not support me on this matter .
your help and advice make me more comfortable.
thanks & regds
chetan tanna
Gandhidham -kutch.
Gujart - pin 370 001
09429947978
09979797404
From India, Mumbai
Dear Chetan, You need pf no and date of leaving service of previous employer and need to fill up the form 13 to transfer the pf account. Regards, sukanta.
From India, Calcutta
From India, Calcutta
Dear Sukanta,
Atomz Informed you on the Minimum wages for ESIC, but you should follow the rules of Minimum wages, as per minimum wages for the skilled persons minimum wages should be Rs. 178.50 Per day. so monthly around 4700/-
From India, Pune
Atomz Informed you on the Minimum wages for ESIC, but you should follow the rules of Minimum wages, as per minimum wages for the skilled persons minimum wages should be Rs. 178.50 Per day. so monthly around 4700/-
From India, Pune
Minimum wages limit for calculation esic is diffrent in diffrent states and it depands up on minimum wages fixed in a particular state if minimum wages are fixed Rs. 3600 for 8 hours than it is calculated on gross salary as basic salary+ hra+ washing allowances+ other allowances given by co.
From India, Shimla
From India, Shimla
Regarding the ESI Act, it must not provide any minimum gross wages for deduction of the ESI, because if it does then it would be against the Minimum Wage Act.
But ESI act says:
Sec 42(1) : "No employee’s contribution shall be payable by or on behalf of an employee whose average daily wages during a wage period are below such wages as may be prescribed by the Central Government."
Under Rule 52 of ESI Central Rules, 1950 the employee earning upto Rs. 100/- a day as wages are exempted from payment of their part of contribution .
Being said that I must give one more point to think about:
if an employee is beyond the limit of ESI (earning more than Rs. 15000) would the establishment be liable under Industrial Dispute Act with regard to that employee?
Stay Cool
Atom
From India, Phagwara
But ESI act says:
Sec 42(1) : "No employee’s contribution shall be payable by or on behalf of an employee whose average daily wages during a wage period are below such wages as may be prescribed by the Central Government."
Under Rule 52 of ESI Central Rules, 1950 the employee earning upto Rs. 100/- a day as wages are exempted from payment of their part of contribution .
Being said that I must give one more point to think about:
if an employee is beyond the limit of ESI (earning more than Rs. 15000) would the establishment be liable under Industrial Dispute Act with regard to that employee?
Stay Cool
Atom
From India, Phagwara
That's exactly what I said. Rule 52 deals with only a situation where an empmloyee is exempted from paying contribution but does not fix any minimum limit for his eligibility for ESI benefits so that the employer will also be free from the liability of paying contribution.If so, it not only militates agaisnt the Minimum Wages Act but also agaisnt the ESI Act itself.
As regards the implications under the Industrial Dispute Act, I must say that the definition of 'employee' under the ESI Act and the definition of 'workman' under the Industrial Disputes Act are different and each Act has to be judged independently and one cannot import the definition of 'employee' under ESI Act into the Industrial disputes Act to exclude him from the purview of the Industrial Disputes Act merely because he draws wages in excess of Rs.15000/-p.m
B.Saikumar
HR & labour Law Consultant
Chipinbiz Consultancy Pvt.ltd
Mumbai
022-28324234
From India, Mumbai
As regards the implications under the Industrial Dispute Act, I must say that the definition of 'employee' under the ESI Act and the definition of 'workman' under the Industrial Disputes Act are different and each Act has to be judged independently and one cannot import the definition of 'employee' under ESI Act into the Industrial disputes Act to exclude him from the purview of the Industrial Disputes Act merely because he draws wages in excess of Rs.15000/-p.m
B.Saikumar
HR & labour Law Consultant
Chipinbiz Consultancy Pvt.ltd
Mumbai
022-28324234
From India, Mumbai
To all seniors,
I have recently taken up a job in the generalist HR role and I wanted to understand that is there an option where an employee can get both PF and ESI deducted from their salary?
I mean if an organization already has the syatem of PF deductions what benefits would be added by giving ESI deductions too.
Looking froward to your revert.
Thanks
From India, Jaipur
I have recently taken up a job in the generalist HR role and I wanted to understand that is there an option where an employee can get both PF and ESI deducted from their salary?
I mean if an organization already has the syatem of PF deductions what benefits would be added by giving ESI deductions too.
Looking froward to your revert.
Thanks
From India, Jaipur
Dear All
Thanks Mr Atomz and Mr Saikumar for the correct inputs.
So it is very much right that ESIC is not the authority which governs or dictates the minimum wages. It is the different body "Labour Department". Am I right?
Now any organization (employer) comes under the purview of ESI act (10 + employee) should contribute 4.75% on the sallary paid except on the salary paid more than 15000/- to his employees. And the employees whose salary exceeds 100 Rs per day and whose salary is below 15000/- per month should share 1.75% towards the ESI contribution. Am I right?
Further the same organization comes under PF act if the number of employees exceeds 20+. And now the minimum wages act comes into play, which is different for different areas/states. I hope I am right.
Now if the organization has less than 10 employees then whether the minimum wages act is applicable? (which is strictly applicable once PF act is applicable).
Looking forward for your feedback.
Abhinandan.
From India, Hubli
Thanks Mr Atomz and Mr Saikumar for the correct inputs.
So it is very much right that ESIC is not the authority which governs or dictates the minimum wages. It is the different body "Labour Department". Am I right?
Now any organization (employer) comes under the purview of ESI act (10 + employee) should contribute 4.75% on the sallary paid except on the salary paid more than 15000/- to his employees. And the employees whose salary exceeds 100 Rs per day and whose salary is below 15000/- per month should share 1.75% towards the ESI contribution. Am I right?
Further the same organization comes under PF act if the number of employees exceeds 20+. And now the minimum wages act comes into play, which is different for different areas/states. I hope I am right.
Now if the organization has less than 10 employees then whether the minimum wages act is applicable? (which is strictly applicable once PF act is applicable).
Looking forward for your feedback.
Abhinandan.
From India, Hubli
Minimum Wage Act always applicable whether establishment is under EPF or ESI.
Now why do EPF department is strict about it ?
Because of the ruling of Court that "PF must be deducted on minimum wages". But other side to this is that the EPF deptt. can never enforce the employer to pay Minimum Wages because they do not have the authority to do so.
For Instance: if a worker's salary is 3000/month, the EPF deptt. can never enforce the employer to pay to the worker 4050 (if the minimum wages is 4050). They can only enforce the employer to make the PF deduction up to 3000.
Note: Punjab & Haryana High Court has decided the case against the EPF deptt. for deducting EPF upto minimum wages. The stict rule of EPF deduction is suspended till further notification.
Stay Cool
Atom
From India, Phagwara
Now why do EPF department is strict about it ?
Because of the ruling of Court that "PF must be deducted on minimum wages". But other side to this is that the EPF deptt. can never enforce the employer to pay Minimum Wages because they do not have the authority to do so.
For Instance: if a worker's salary is 3000/month, the EPF deptt. can never enforce the employer to pay to the worker 4050 (if the minimum wages is 4050). They can only enforce the employer to make the PF deduction up to 3000.
Note: Punjab & Haryana High Court has decided the case against the EPF deptt. for deducting EPF upto minimum wages. The stict rule of EPF deduction is suspended till further notification.
Stay Cool
Atom
From India, Phagwara
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SALARY CAN BE SPLIT INTO COMPONENTS BUT NOT LESS THAN THE MINIMUM WAGES.docx
Copy of Salary Template esic.xls
Delhi - Minimum Wages w.e.f. 01.10.2012 (1).pdf