You are right. I dont think I ever stated net or take home. The coverage determination has to be made on Cash payable to the Employee had he worked on all days. The month in which this decision is to be made is April and October. For this purpose that is to say, to decide whether he is to be covered or not, Overtime wage will not be considered. But fr actual payment of contribution, the wage as defined in Sec. 2 (22) will be considered, and for this even overtime wage will have to considered. However, Employers share of EPF cntributin, gratuity, pension scheme, superannuatin scheme if any, actual reimbursement of travelling allowance or travelling concession, special expenc es reimburseed as per nature of job like washing allowance, batta for drivers etc need not be taken for deciding coverage or paying contribution.
Please read Sec 2 (9) and Sec 2 (22) of the ESI act, and if still have some doubt, let me have the specific case in your unit.
O. Abdul Hameed
From India, Coimbatore
54Please read Sec 2 (9) and Sec 2 (22) of the ESI act, and if still have some doubt, let me have the specific case in your unit.
O. Abdul Hameed
From India, Coimbatore
Hi,
We are having 30 Employees and out of which 3 employees are falling under 10000 limit. We are not having ESI Registration since none of our employees salary was not falling under 10K till last month.
Do we require a ESI Registration ?
Thanks in advance
Renjith
From India, Bangalore
We are having 30 Employees and out of which 3 employees are falling under 10000 limit. We are not having ESI Registration since none of our employees salary was not falling under 10K till last month.
Do we require a ESI Registration ?
Thanks in advance
Renjith
From India, Bangalore
Dear Suman/malikji
1) ESI is applicable to software from inception of that company.
2) If the strength of ONLY "coverable" employees reaches 10 (and not 20) then the software co is coverable. (For IT it is 10 whereas for ITeS it is 20).
3) "Coverable" employees means those who draw "GROSS" wages less than 10001/-.
4) "GROSS" wages means all regularly incurring monthly remuneration (except Washing allowance and OT). Contrary to the popular belief even "Incentive" can be added.
5) Washing Allowance up to a reasonable limit (i.e.) monthly cost for washing and ironing of Uniform provided by the office. Because as the name suggests, it is not treated as wages but as an expense paid to defray the cost of maintaining the uniform. So, ESIC doesn't allow irrational amounts under the washing allowance component of the salary structure.
From India, Madras
1) ESI is applicable to software from inception of that company.
2) If the strength of ONLY "coverable" employees reaches 10 (and not 20) then the software co is coverable. (For IT it is 10 whereas for ITeS it is 20).
3) "Coverable" employees means those who draw "GROSS" wages less than 10001/-.
4) "GROSS" wages means all regularly incurring monthly remuneration (except Washing allowance and OT). Contrary to the popular belief even "Incentive" can be added.
5) Washing Allowance up to a reasonable limit (i.e.) monthly cost for washing and ironing of Uniform provided by the office. Because as the name suggests, it is not treated as wages but as an expense paid to defray the cost of maintaining the uniform. So, ESIC doesn't allow irrational amounts under the washing allowance component of the salary structure.
From India, Madras
Mr Hamid, I am interested in this Suri’s case you were referring too. Can you kindly give more details about the case, the entire name or the citation or the text probably? Thank you
From India, Bangalore
From India, Bangalore
Hi
PFA the Notification (amendment ESI Act).
Applicability of ESI w.ef.June 2010
ESI is applicable to software/IT/ shops/establishments where ten or more employees are employed & any one employee's wage less then 15000/-(including Contractor's employee.
You can contact us for compliance,liaison etc under varios labour laws as applicable.
From India, New Delhi
PFA the Notification (amendment ESI Act).
Applicability of ESI w.ef.June 2010
ESI is applicable to software/IT/ shops/establishments where ten or more employees are employed & any one employee's wage less then 15000/-(including Contractor's employee.
You can contact us for compliance,liaison etc under varios labour laws as applicable.
From India, New Delhi
Dear All, The Esi scale has been increased to 15,000 Please look on it Regards Anand Mahendran Sr.HR Executive FTPL
From India, Delhi
From India, Delhi
thank you yadavji! that was very helpful. I have few doubts still, you are saying that ESI is applicable to the IT sectors because of the amendment of section 2 (12)?
wont concluding so still make it a moot point? the notifications do not seem to explicilty state the applicability.
Kindly correct me if i am wrong.
Looking forward for your response.
From India, Bangalore
wont concluding so still make it a moot point? the notifications do not seem to explicilty state the applicability.
Kindly correct me if i am wrong.
Looking forward for your response.
From India, Bangalore
and also it is the State government which is d governing authority as per section 2(1)?
I.E. (1) "appropriate Government" means, in respect of establishments under the control of the Central Government or 1[a railway administration] or a major port or a mine or oilfield, the Central Government, and in all other cases, the State Government.
So wont the applicability to software industries vary from state state basis?
From India, Bangalore
I.E. (1) "appropriate Government" means, in respect of establishments under the control of the Central Government or 1[a railway administration] or a major port or a mine or oilfield, the Central Government, and in all other cases, the State Government.
So wont the applicability to software industries vary from state state basis?
From India, Bangalore
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
ESI applicable to software development companies - Bom HC 2012.pdf
ESI-Not-applica ble-on-Conveyan ce-Allowance.do c