Dear All,
My Question is very clear.
If a power using organization is employing 10 or more persons and their salary is less than Rs. 10000/-, then the organization should be covered under ESIC Act 1948.
But my question is, if a power using organization is employing more than 10 employees and only 5 employees salary is less than Rs. 10000/- (As per Limit) and all others are getting more than Rs. 10000/-, Then should the organization to be covered under ESIC Act or not ? I request all of you to make it clear instead of saying Yes or No?
Thank You
Sinju George
From India
My Question is very clear.
If a power using organization is employing 10 or more persons and their salary is less than Rs. 10000/-, then the organization should be covered under ESIC Act 1948.
But my question is, if a power using organization is employing more than 10 employees and only 5 employees salary is less than Rs. 10000/- (As per Limit) and all others are getting more than Rs. 10000/-, Then should the organization to be covered under ESIC Act or not ? I request all of you to make it clear instead of saying Yes or No?
Thank You
Sinju George
From India
Hi!
The ESI Coverage is for the establishment and the coverable gross salary limit is Rs.10000/- Even if all the employees are more than 10000/- also the establishment continue to be in coverage. The Company as a principal employer responsible for the service provider/contractor's employees in case they are in coverable limit., i.e.,Less than Rs.10000/-
The coverage will cease only on legal closure of the company viz., Winding up, Merger or Amalgamation.
R Muralitharan
From India, Madras
The ESI Coverage is for the establishment and the coverable gross salary limit is Rs.10000/- Even if all the employees are more than 10000/- also the establishment continue to be in coverage. The Company as a principal employer responsible for the service provider/contractor's employees in case they are in coverable limit., i.e.,Less than Rs.10000/-
The coverage will cease only on legal closure of the company viz., Winding up, Merger or Amalgamation.
R Muralitharan
From India, Madras
Dear Friend,
ESI (Employee State Insurance)
Table of Contents
§ Employee State Insurance (ESI) FAQs
§ What is ESI?
§ What are the rates for contribution (deduction) to ESI?
§ What is ESI Gross Salary?
§ What are the other rules governing ESI?
§ What are the various ESI reports?
§ See also:
Employee State Insurance (ESI) FAQs#
What is ESI?#
ESI refers to Employee State Insurance. This is an insurance scheme run by the government. In this scheme, an employee contributes part of his salary as an insurance premium. Along with the employee, the employer also contributes to the scheme. The government collects this money and operates ESI hospitals.
§ whenever an employee falls sick, he can go to these ESI hospitals and avail free treatment.
§ ESI contribution is mandatory for all employees who draw a gross of less than 10000/-
What are the rates for contribution (deduction) to ESI?#
§ For employees, ESI deduction rate is 1.75% of the ESI Gross salary.
§ For employer, ESI contribution is at the rate of 4.75% of the ESI gross salary.
What is ESI Gross Salary?#
Generally all the income components paid to an employee is considered for ESI Gross computation.
What are the other rules governing ESI?#
ESI contribution stops when the employee's gross income crosses Rs. 10000/-.
§
§ This stoppage of ESI cannot happen in any month. The changeover from ESI-deduction to no-ESI-deduction can happen only in 3rd (March) or 9th (September) month only. i.e. even if an employee's salary crosses, 10000 in July, he will continue to have ESI deduction until August.
§ In the September payroll, the employee's ESI deduction will be zero (as he has crossed Rs. 10000/-)
§ The comparison of income is done with Full Income and the calculation of ESI is done on the actual payout (income).
What are the various ESI reports?#
§ ESI Monthly report - This report is generated monthly. This gives the total deductions/contribution (employee and employer) done for each employee for a month.
§ ESI Form 6 - This is a half yearly report.
§ ESI Form 7 - This is also a half yearly report.
See also:#
Learn more about ESI at the official website: Employee State Insurance Corporation (ESIC)
................................... End ..............................
I think it would be helpful to you.
All the best.
Regards,
Kalpana
Hyderabad
From India, Eluru
1ESI (Employee State Insurance)
Table of Contents
§ Employee State Insurance (ESI) FAQs
§ What is ESI?
§ What are the rates for contribution (deduction) to ESI?
§ What is ESI Gross Salary?
§ What are the other rules governing ESI?
§ What are the various ESI reports?
§ See also:
Employee State Insurance (ESI) FAQs#
What is ESI?#
ESI refers to Employee State Insurance. This is an insurance scheme run by the government. In this scheme, an employee contributes part of his salary as an insurance premium. Along with the employee, the employer also contributes to the scheme. The government collects this money and operates ESI hospitals.
§ whenever an employee falls sick, he can go to these ESI hospitals and avail free treatment.
§ ESI contribution is mandatory for all employees who draw a gross of less than 10000/-
What are the rates for contribution (deduction) to ESI?#
§ For employees, ESI deduction rate is 1.75% of the ESI Gross salary.
§ For employer, ESI contribution is at the rate of 4.75% of the ESI gross salary.
What is ESI Gross Salary?#
Generally all the income components paid to an employee is considered for ESI Gross computation.
What are the other rules governing ESI?#
ESI contribution stops when the employee's gross income crosses Rs. 10000/-.
§
§ This stoppage of ESI cannot happen in any month. The changeover from ESI-deduction to no-ESI-deduction can happen only in 3rd (March) or 9th (September) month only. i.e. even if an employee's salary crosses, 10000 in July, he will continue to have ESI deduction until August.
§ In the September payroll, the employee's ESI deduction will be zero (as he has crossed Rs. 10000/-)
§ The comparison of income is done with Full Income and the calculation of ESI is done on the actual payout (income).
What are the various ESI reports?#
§ ESI Monthly report - This report is generated monthly. This gives the total deductions/contribution (employee and employer) done for each employee for a month.
§ ESI Form 6 - This is a half yearly report.
§ ESI Form 7 - This is also a half yearly report.
See also:#
Learn more about ESI at the official website: Employee State Insurance Corporation (ESIC)
................................... End ..............................
I think it would be helpful to you.
All the best.
Regards,
Kalpana
Hyderabad
From India, Eluru
Hi Sinju Their salary is more than Rs. 10000/-, then should it be covered under ESIC Act 1948. NO
From India, Coimbatore
From India, Coimbatore
Sinju
If any employee get Rs.10001/- per month then he will exempted from ESI rule.But, If the washing allowance is included in his/ her salary then you have to pay the ESi contribution.e.g. Salary is 10500/- and washing all is 750/- then you have to calculate the contribution on10500-750= 9750 and have to pay the ESI on 9750/-.Feel free to revert.
Regards
Ravi Kulkarni
HR manager
From India, Mumbai
If any employee get Rs.10001/- per month then he will exempted from ESI rule.But, If the washing allowance is included in his/ her salary then you have to pay the ESi contribution.e.g. Salary is 10500/- and washing all is 750/- then you have to calculate the contribution on10500-750= 9750 and have to pay the ESI on 9750/-.Feel free to revert.
Regards
Ravi Kulkarni
HR manager
From India, Mumbai
Dear friend,
here while considering the coverage of an establishment under esic,20 persons drawing less than 10000 per month are to be considered - here the persons under the category of office boy,security,sweepers etc are also to be included. If the establishement is having any contract labours like security/housekeepers etc., without seperate esi code number,such employees are also to be included with your employees.
From India, Madras
here while considering the coverage of an establishment under esic,20 persons drawing less than 10000 per month are to be considered - here the persons under the category of office boy,security,sweepers etc are also to be included. If the establishement is having any contract labours like security/housekeepers etc., without seperate esi code number,such employees are also to be included with your employees.
From India, Madras
Hi
As you are employing more than 20 employees, as per statutory regulations you should cover your establishment under ESI Act. You can treat all the employees who are drawing more than Rs.10000/- per month (excluding Over Time Wages) as exempted employees and shall send periodical nil returns to the authorities.
regards
R G NAGENDRA
From India, Mumbai
As you are employing more than 20 employees, as per statutory regulations you should cover your establishment under ESI Act. You can treat all the employees who are drawing more than Rs.10000/- per month (excluding Over Time Wages) as exempted employees and shall send periodical nil returns to the authorities.
regards
R G NAGENDRA
From India, Mumbai
Applicability of ESIC Act if all employees salary is more than Rs. 10000/
If the Salary is below 10000/-, ESI applicable , But Salary is 10001, There is not applicable ESI act. But you must to arrenge the other Medical Facilities for the employees.At the same time you must to apply maternity benefit act for female workers.
Thanks & Regards,
A.PALPANDIAN
Officer - Human Resource
From India, Bangalore
If the Salary is below 10000/-, ESI applicable , But Salary is 10001, There is not applicable ESI act. But you must to arrenge the other Medical Facilities for the employees.At the same time you must to apply maternity benefit act for female workers.
Thanks & Regards,
A.PALPANDIAN
Officer - Human Resource
From India, Bangalore
Hi all,
I am new to HR and need your advise/help in the following few questions.
Under the ESIC act for a Pharmaceutical company are there any stipulations on the leave policy?
Secondly since its a startup company there is no implementation of any gratuity rules..is this illegal as per the act?
We have around 70-80 odd office based and around 800-1000 sales/field staff. What are the other ESIC related rules that would apply to a pharma company?
Please help!
From India, Bangalore
I am new to HR and need your advise/help in the following few questions.
Under the ESIC act for a Pharmaceutical company are there any stipulations on the leave policy?
Secondly since its a startup company there is no implementation of any gratuity rules..is this illegal as per the act?
We have around 70-80 odd office based and around 800-1000 sales/field staff. What are the other ESIC related rules that would apply to a pharma company?
Please help!
From India, Bangalore
Hello everbody,
Recently on 19th Feb 2010, the Labour Ministry has in a meeting decided to increase the wage ceiling for ESI coverage from Rs.10000/- to Rs.15000/-. The date of implementation is not yet decided / declared.
This may take time due to procedural aspects of passing the notification etc. When this is implemented then the exemption will be from Rs.15001/- and above, may be the number of eligible employees would increase in your company to 10 (min reqd if using power) or 20( min reqd if not using power) making you legally liable for coverage.
So please wait for a couple of months before committing to some alternate scheme assuming you are nor liable for ESI scheme coverage.
regards
From India, Bangalore
Recently on 19th Feb 2010, the Labour Ministry has in a meeting decided to increase the wage ceiling for ESI coverage from Rs.10000/- to Rs.15000/-. The date of implementation is not yet decided / declared.
This may take time due to procedural aspects of passing the notification etc. When this is implemented then the exemption will be from Rs.15001/- and above, may be the number of eligible employees would increase in your company to 10 (min reqd if using power) or 20( min reqd if not using power) making you legally liable for coverage.
So please wait for a couple of months before committing to some alternate scheme assuming you are nor liable for ESI scheme coverage.
regards
From India, Bangalore
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ESIC Act 1948 .Doc
ESIC Act 1948.ppt
Form No. 37 Under ESIC act.pdf