Dear All,
As per my knowledge if any establishment is employing 20 or more than 20 employees the establishment has to be covered under the ESI Act. But if all the employees are getting salary more 10000/- then ESI act will not be applicable as I believe.
In the above case the total number of employees are 140 but coverable employees are only 16 as they are drawing salary less than 10000/- therefore, only these employees are coverable under the ESI act.
Ravi Gupta
From India, New Delhi
1As per my knowledge if any establishment is employing 20 or more than 20 employees the establishment has to be covered under the ESI Act. But if all the employees are getting salary more 10000/- then ESI act will not be applicable as I believe.
In the above case the total number of employees are 140 but coverable employees are only 16 as they are drawing salary less than 10000/- therefore, only these employees are coverable under the ESI act.
Ravi Gupta
From India, New Delhi
Hi Everybody, Kindly tell me the applicability of ESI act in case of trainees in a manufacturing company. Jyoti
From India, Delhi
From India, Delhi
Applicability of ESIC is not only concern with no. of employees but also type of industries, i.e for the establishment covered under shop & establishmemt act the employee strenght will be 20 or more and if the establishment covered under factories act the employees strenght will be 10 or more, the establishment like hotel & restuarant, cinema theaters, transport & logistic companies the applicability for esic coverage will be 10 employees or more. However the scheme is not extended to Hospitals & nursing home,educational institutions & constuction companies.
Thanks & regards,
Sumit Kumar Saxena
From India, Ghaziabad
Thanks & regards,
Sumit Kumar Saxena
From India, Ghaziabad
Hi guys
Just wondering why so much confusion.
Please find below my comments:
1. A company is covered under ESI, if number of employees who get equivalent or less than Rs.10,000/-, is 20 or more.
2. Once you touch upon the limit of 20 employees who get equivalent or less than Rs.10,000/- you got to register with ESI.
3. Once you register you got to pay ESI contribution for the people who had been getting, equivalent or less than 10,000/-, in the past too as arrears. Infact interest/fine is also calculated and levied. Disguise is corporates dont get exemption of tax for the interest/fine paid. It has to be shown as expenditure in the balance sheet.
4. You have to continue to pay the ESI contribution even if the employee get a hike and cross the limit of Rs.10,000/-, until the half yearly returns (two half yearly).
Hope above points are clear. But the ACT itself is very confused. There are lot of practical difficulties in implementing.
Particularly in IT companies, no guys are claiming anything from ESI, the percentage of usage and claim is very minimal. Obviously because all IT companies go for complete medical insurance and coverage, where in employees are allowed to take the medical assistance from large hospitals, where in the services are of high quality.
Regards
Sohail
Just wondering why so much confusion.
Please find below my comments:
1. A company is covered under ESI, if number of employees who get equivalent or less than Rs.10,000/-, is 20 or more.
2. Once you touch upon the limit of 20 employees who get equivalent or less than Rs.10,000/- you got to register with ESI.
3. Once you register you got to pay ESI contribution for the people who had been getting, equivalent or less than 10,000/-, in the past too as arrears. Infact interest/fine is also calculated and levied. Disguise is corporates dont get exemption of tax for the interest/fine paid. It has to be shown as expenditure in the balance sheet.
4. You have to continue to pay the ESI contribution even if the employee get a hike and cross the limit of Rs.10,000/-, until the half yearly returns (two half yearly).
Hope above points are clear. But the ACT itself is very confused. There are lot of practical difficulties in implementing.
Particularly in IT companies, no guys are claiming anything from ESI, the percentage of usage and claim is very minimal. Obviously because all IT companies go for complete medical insurance and coverage, where in employees are allowed to take the medical assistance from large hospitals, where in the services are of high quality.
Regards
Sohail
Dear Friends, News for today: ESIC band has increased from 10,000 to 15,000 w.e.f. 1st April, 2010. It means employees drawing a gross salary below 15,001/- will be eligible for ESI.
From India, Pune
From India, Pune
Kindly provide notification for the date of applicability that limit stand increased from 1. april 2010. Regards Amit
From India, Delhi
From India, Delhi
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 question paper nippon.docx
ESI contribution rates lowering.pdf