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Dear Sirs,

Employment of at least 10 or more persons is required in order to make any "shop" eligible for separate coverage and obtaining a separate code number under the ESI Act, 1948, and rules/regulations framed thereunder.

However, if the principal employer to whom you want to supply engineers on a contract basis agrees, then you can ensure compliance regarding ESI using the code number of the principal employer itself.

I would like to mention that the current coverage limit under the ESI Act is Rs. 15,000 per month. Therefore, please consider this aspect when contemplating coverage under the aforementioned Act.

Thank you.

From India, Noida
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Hi all, we have small scale industry and 60 employees therefore we want to applicable PF and ESIC in our company.how can we do
From India, Mumbai
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i am Insurance person (IP) then my salary more than 15000 . so please solve this question , i am able for receive amt. for medical when i am injured.and which percentage compensation
From India, New Delhi
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If any organisation/autonomous body does not deduct ESI of any employee out of 230, whether any judiciary act is exist ?
From India, Meerut
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Hi,

Can you please share what decision you all are taking regarding ESI deduction in light of the threshold limit of 21,000 as per the draft rules that have been issued? I have heard that some organizations are deducting assuming that it may be applicable retrospectively.

Thank you.


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Sir, amendments in the ESI (Central) Rules, 1950 are generally prospective and not retrospective.
From India, Noida
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Hi,

Thanks for the reply. As there was an amendment in the Bonus Act with retrospective effect, we have concerns for this reason. Is it valid to deduct contributions and refund them in the next salary if no retrospective amendment comes up? Please share.


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Hi,

Salary Structure based on ESI ACT:-

The following items will form part of the wage both under Section 2(9) i.e for considering the employee for the purpose of coverage and Section 2(22) of the ESI Act for the purpose of charging of contribution:-

1. Matinee allowance which is being paid to employees in Cinema Houses.

2. Shift allowance paid to employees who work on shift duty at odd shifts.

3. Location allowance paid, in addition to Dearness Allowance to meet the high house rent.

4. Compensatory allowance.

5. Cash handling allowance paid to Cashier.

6. Supervisory Allowance.

7. Additional pay paid to training staff.

8. Charge allowance

9. Steno/Typist allowance

10. Plant allowance

11. Honorarium for looking after the hospital/dispensary

12. Computer allowance

13. Gestetner/Photocopier/Printer allowance

14. Personnel/Special allowance

15. Machine allowance

16. Convassing allowance

17. First-aid allowance

18. Personnel allowance – Pay over and above the basic wage and Dearness allowance for skill, efficiency or past good records.

19. Area allowance - given to employees living in a particular area to meet the high cost of living in that area.

20. Exgratia payment if payment is made within an interval of two months.

The following items will not form part of the wage either under Section 2(9) or under Section 2(22) of the ESI Act:-

1. Payment made on account of un-availed leave at the time of discharge.

2. Commission on advertisement secured for Newspapers, if not paid to the regular employee.

3. Fuel allowance/Petrol allowance

4. Entertainment allowance

5. Shoes allowance

6. Payment made on account of gratuity on discharge/retirement.

7. Payment made on encashment of leave..

Please find the attachment for much more clear view on some allowances...

From India, Chennai
Attached Files (Download Requires Membership)
File Type: docx ESI - Allowances Rules - Salary.docx (22.3 KB, 138 views)

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Hi,

Salary Structure based on ESI ACT:-

The following items will form part of the wage both under Section 2(9) i.e for considering the employee for the purpose of coverage and Section 2(22) of the ESI Act for the purpose of charging of contribution:-

1. Matinee allowance which is being paid to employees in Cinema Houses.

2. Shift allowance paid to employees who work on shift duty at odd shifts.

3. Location allowance paid, in addition to Dearness Allowance to meet the high house rent.

4. Compensatory allowance.

5. Cash handling allowance paid to Cashier.

6. Supervisory Allowance.

7. Additional pay paid to training staff.

8. Charge allowance

9. Steno/Typist allowance

10. Plant allowance

11. Honorarium for looking after the hospital/dispensary

12. Computer allowance

13. Gestetner/Photocopier/Printer allowance

14. Personnel/Special allowance

15. Machine allowance

16. Convassing allowance

17. First-aid allowance

18. Personnel allowance – Pay over and above the basic wage and Dearness allowance for skill, efficiency or past good records.

19. Area allowance - given to employees living in a particular area to meet the high cost of living in that area.

20. Exgratia payment if payment is made within an interval of two months.

The following items will not form part of the wage either under Section 2(9) or under Section 2(22) of the ESI Act:-

1. Payment made on account of un-availed leave at the time of discharge.

2. Commission on advertisement secured for Newspapers, if not paid to the regular employee.

3. Fuel allowance/Petrol allowance

4. Entertainment allowance

5. Shoes allowance

6. Payment made on account of gratuity on discharge/retirement.

7. Payment made on encashment of leave..

Please find the attachment for much more clear view on some allowances...

From India, Chennai
Attached Files (Download Requires Membership)
File Type: pdf ESI - Allowances Rules - Salary.pdf (225.7 KB, 120 views)

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1. Sir, I think there is apprehension in the minds of HR people that now, with the intention notification published for the enhancement of the wage ceiling under the ESI Act, 1948 as of 06/10/2016, the Govt. can implement the said enhancement from any retrospective date in the final notification, which is expected to be issued after the elapse of 30 days. In this connection, I may submit that by examining the past practice of the Govt., I think there appears to be no reasons for such apprehension. For example, the last enhancement of the wage ceiling under the said Act was carried out by following the procedure as per the details mentioned below:-

(a) Date of intention notification: 27/02/2010.

(b) Date of the final notification: 20/04/2010.

(c) Date of the effectiveness of such an enhanced wage ceiling: 01/05/2010.

2. From the above, it is quite clear that earlier such enhancements of the wage ceiling were not retrospective, but sufficient time was allowed by the Govt. It is pertinent to mention here that the wages for the month of May 2010 were, as per practice, paid either on the last date of the month or on the 7th of the next month. And the contribution for May 2010 was payable to ESIC by 21st June 2010. Therefore, I personally feel that there should not be much apprehension on the subject.

3. However, since the actions of the present Govt. are sometimes found to be unpredictable or unforeseen, we have no alternative except to wait for the final notification. I think the issuing of the final notification making it effective from any retrospective date will be a good plea for the employers or affected persons for contesting such an enhancement of the wage ceiling from a retrospective date. We may hope for the best.

From India, Noida
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