To come out of ESI, you can include all the payable components under ESI, If any employee salary is at the range of 9500-10000, the mangement contribution be paid as allownce, their by they can come out of ESI.Other wise they need to pay. Also in case of variable PA , payable annually, it can be equated as regular monthly componets or else the management can pay advance increment . The management has to see the economic of these permutation and take a call. I agree no whitecaller is availing the benefit.
gk
From India, Madras
gk
From India, Madras
Dear Jyothi :
While certainly there is no way out to get exemption from the purview of ESI for empl under Rs 10,000/- instead of looking into the possibiliity of coming out of the purview of ESI, pls try to think and educate your employees of the numerous benefits the ESI is providing - right from medical treatment of chronic diseaese to availment of special treatments.
By contributing 6.5% totally to the ESI, the members of ESI can certainly avail much more benefit than what they have contributed, especially at times of crisis.
Some of the ESI hospitals are really good - atleast in Banglore - where attention to the employees as patients and their family members are far better than that of any other govt/normal hospitals.
Also, for any normal medical treatment especially for hospitalisation, the treatment charges are quite huge.
Considering the above I wd strongly suggest you to educate much more on ESI benefits to the employees such that they derive full benefits out of the same during the time of needy.
Rgds
:: Dhinakaran
From India, Hyderabad
4While certainly there is no way out to get exemption from the purview of ESI for empl under Rs 10,000/- instead of looking into the possibiliity of coming out of the purview of ESI, pls try to think and educate your employees of the numerous benefits the ESI is providing - right from medical treatment of chronic diseaese to availment of special treatments.
By contributing 6.5% totally to the ESI, the members of ESI can certainly avail much more benefit than what they have contributed, especially at times of crisis.
Some of the ESI hospitals are really good - atleast in Banglore - where attention to the employees as patients and their family members are far better than that of any other govt/normal hospitals.
Also, for any normal medical treatment especially for hospitalisation, the treatment charges are quite huge.
Considering the above I wd strongly suggest you to educate much more on ESI benefits to the employees such that they derive full benefits out of the same during the time of needy.
Rgds
:: Dhinakaran
From India, Hyderabad
Hi,
It is true you can't avoid ESIC, but you can safe guard the employees who are drawing approximately 10K.
i.e. If any employee si drawing more than 9.5K, make there salary to Rs.10050.
By making this Employer paying extra Rs.500.
But in reality it is only Rs.100.
How i will tell you
If Employee is drawing Rs.10000
ESI contribution from both Employer and employee is Rs.650p.m.
If you are paying Rs.500 extra to employee, he/she will be saving Rs.150/- of his part .
Ultimately you employee will be benefited and it will help you to increase employee motivation
RBP
From India, Bangalore
It is true you can't avoid ESIC, but you can safe guard the employees who are drawing approximately 10K.
i.e. If any employee si drawing more than 9.5K, make there salary to Rs.10050.
By making this Employer paying extra Rs.500.
But in reality it is only Rs.100.
How i will tell you
If Employee is drawing Rs.10000
ESI contribution from both Employer and employee is Rs.650p.m.
If you are paying Rs.500 extra to employee, he/she will be saving Rs.150/- of his part .
Ultimately you employee will be benefited and it will help you to increase employee motivation
RBP
From India, Bangalore
We have around 40 outsourced agency personal and all of them covered under ESIC.. Last week one of them met with an accident while coming for the job... immediately he has shifted in hospital (private) discharged from hospital very next day.. now what compliance says
1. will he get any compensation from Agency/ESIC??
2. What is the role of agency
Kindly advise
Reg
Manish Shukla
From India, Mumbai
1. will he get any compensation from Agency/ESIC??
2. What is the role of agency
Kindly advise
Reg
Manish Shukla
From India, Mumbai
As the person met with the accident during the course of employment, the contract employer will have to take all the responsibilities. If the contract employer coved the employee under ESIC, the benefit available under this act the employee is entaitiled both medical and cash benefit. If the contrct employer is not covered uner the ESI act then the principle employer need to cover them and recover the contribution from the contractor, in any event the employee cannot depreive the ESi benefit. He can approch the ESI ;local office for more details
gk
From India, Madras
gk
From India, Madras
Dear friends,
As we all know that there is no such provision in law through which u can exemted from ESIC.
The best thing which we can do is if ESI amount is getting deducted from the employee salary then let encourage ur employees to go for ESIC registration. through which at least they will be able to avail the medical facilities.
And finally friends i think this is the time when we should not try to exempt from ESIC. we have to take the initiative in this matter n do the welfare for our employees.
Regards,
Sitaram
From India, Agartala
As we all know that there is no such provision in law through which u can exemted from ESIC.
The best thing which we can do is if ESI amount is getting deducted from the employee salary then let encourage ur employees to go for ESIC registration. through which at least they will be able to avail the medical facilities.
And finally friends i think this is the time when we should not try to exempt from ESIC. we have to take the initiative in this matter n do the welfare for our employees.
Regards,
Sitaram
From India, Agartala
hi jyoti,
You cannot exempt ESI as you as a citizen of India is not suppose to break laws.
If in your organisation ppl don't want to avail it, the best way is to teach them about it and tell them its benefits. once they'll know and understand its significance they might start availing it.
neha
From India, New Delhi
You cannot exempt ESI as you as a citizen of India is not suppose to break laws.
If in your organisation ppl don't want to avail it, the best way is to teach them about it and tell them its benefits. once they'll know and understand its significance they might start availing it.
neha
From India, New Delhi
Hi Jyothi,
as everyone said being a manufacturing concern u cannot exempt from ESI. As per this act the following comprises the wages of a person
• Basic pay
• Dearness allowance
• House rent allowance
• City compensatory allowance
• Overtime wages (but not to be taken into account for determining the coverage of an employee)
• Payment for day of rest
• Production incentive
• Bonus other than statutory bonus
• Night shift allowance
• Heat, Gas & Dust allowance
• Payment for unsubstituted holidays
• Meal/food allowance
• Suspension allowance
• Lay off compensation
• Children education allowance (not being reimbursement for actual tuition fee)
As most of the benefits are covered under the term Wages as per this act, you cannot alterate it with the Flexi Benefit Plans (most of the companies provide)
So You have to follow this act.
regards,
Mamta.S.Khandelwal
From India, Madras
as everyone said being a manufacturing concern u cannot exempt from ESI. As per this act the following comprises the wages of a person
• Basic pay
• Dearness allowance
• House rent allowance
• City compensatory allowance
• Overtime wages (but not to be taken into account for determining the coverage of an employee)
• Payment for day of rest
• Production incentive
• Bonus other than statutory bonus
• Night shift allowance
• Heat, Gas & Dust allowance
• Payment for unsubstituted holidays
• Meal/food allowance
• Suspension allowance
• Lay off compensation
• Children education allowance (not being reimbursement for actual tuition fee)
As most of the benefits are covered under the term Wages as per this act, you cannot alterate it with the Flexi Benefit Plans (most of the companies provide)
So You have to follow this act.
regards,
Mamta.S.Khandelwal
From India, Madras
Dear Jothy,
As per the ESI act it is mandatory to avail ESI facility who is earing less than 10000. In that sense you cannot get excempt, but what you can do is add all the benefits and show in the payslip and your income will go up. Then you have to be careful about your Tax
Regards
Rajesh M
Manager HRD
From India, New Delhi
As per the ESI act it is mandatory to avail ESI facility who is earing less than 10000. In that sense you cannot get excempt, but what you can do is add all the benefits and show in the payslip and your income will go up. Then you have to be careful about your Tax
Regards
Rajesh M
Manager HRD
From India, New Delhi
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