Will an employee, who has crossed his salary ceiling for ESI, continue to remain covered under ESI Act he will be eligible for ESI benifit or not. satish
From India, Chandigarh
Dear Satish,

your question is a existing ESIC member who has crossed the esic ceiling Limit of coverage will remain covered or not ,futher will he be able to avail benefit or not.

Workers, covered under the ESI Act, are required to pay contribution towards the scheme on a monthly basis. A contribution period means a six-month time span from 1st April to 30th September and 1st October to 31st March. Thus, in a financial year there are two contribution periods of six months duration.

Cash benefits under the scheme are generally linked with contributions paid. The benefit period starts three months after the closure of a contribution period

if i say the worker come out of esic bracket on 26 May 2010. and of one month contribution has already gone to to esic in this case we have to pay his contribution till the contribution period of six -month i.e ( 1st April 2010 to 30st September2010) end & the worker will avail the benefit for this contribution period.

hope i have answered to u query.

Regards

Mohan

From India, Mumbai
Dear Satish, If an employee crosses wage ceiling during any contribution period, his contribution is supposed to pay till the completion of the concerned contribution period,though he crossed the wage ceiling.
In case of query don't hesitate to call me on 09443434313 or mail to

From India, Hyderabad
To the group Members,
Do we have any alternative for coverage of ESI. If an employer is ready to provide an equivalent or better service than ESI to employee, does he has to go through ESI only ??
I know it may sound bit weird but I need a justification that why can't we provide a better benefit to our employees in comparatively less rate than we pay in ESI.
If anyone can solve my query I will be highly thankful to him/her.
Kindly send me your replies to .........

From India, Hyderabad
Dear Prabhar,

it is very difficult to any company to provide the benefits provided by ESI...Infact, in ESI Act, there are certain provisions for exemption from ESI Act in the following cases:

i) Exemption for certain class of factories/esttt., ii) Exemption for certain class of employees & iii) Exemption for certain provisions fo the ESI.....

The first point that ESI Exemption committee will see at is : Whether the Employer is providing at par or superior benefits than ESI....but no company will give equal or more benefit than ESI, only for regular employees that too public sector only provides the benefits at par or superior benefits to ESI..... Since some of the main benefits given by the ESI are:

i) Sickness Benefit...Insured person is entitled for 91 days leave in one year with approximately 60% of his wages, besides the medical/hospital benefit;

ii) Enhanced Sickness Benefit:... Incase of Family planning, i.e. Tubectomy/vasectomy the concerned insured person/women are entitled for cash benefit more than or equal to their wages besides medical/hosptal facility;

iii) Extended Sickness Benefit:.. in case of certain long diseases like TB/Heart diseases...etc... even the medical benefit will be extended to 3 years irrespective of his employment position ...& cash benefit will be extended upto 2 years, in case if he is having 2 years of insurable employement..

iv) Disablement Benefit: If a person met with an injury/accident at work place or on the way to work place or return from workplace to home, he is entitled for Temporary disablement benefit, which nearly 80% of his wages, for which there is no limit, i.e. the leave may be extended beyond 91 days... If it results in loss his earling capacity due to loss of early part of body,ex. a part of finger, or a fracture to leg, etc..... he will be paid life long pension on the basis of the recommendations of the Medical Board, irrespective of the fact that whether he continues that employment or not; In case if dies due to that employment injury the pension will be paid to the dependants...ie. wife till life time or remarriage, children upto 21 years, widowed mother....

v) Maternity Benefit: If an I.W. completed 9 months service under ESI coverage and works for wages for 70 days in the concered contribution period she will be paid 84 days maternity benefit @ rate of more than her wages, besides medical/hospital facility;

Besides all these things Insured Persons/women are entitled for funeral expenses, superspeciality treatment, In cases of loss of job due to retrenchment he will be paid Unemployment allowances with certain terms and conditions...etc., What more........

Now a days ESI is establishing many Medical/Nursing Institutions through out the Country, which will fulfill the dream of an employee to see his son/daughter as a doctor, as ESI is providing certain % of reservation to the children of the Insured Person.......which no one will even dreamt also......

Since ESI is providing handful of benefits......No company afford these things... Hence getting exemption is said to be highly difficult.......

I hope i clarified all the doubts among our HR friends about ESI....

In case of any query/doubt don't hesitate to call me @ 09443434313 or write to

From India, Hyderabad
Sir,
Thanks a lot for sorting out my query. I was very kind of you to explain we youngsters about the whereabouts of ESI act. I have already saved your number & will definitely give you a call soon. I am based out of hyderabad & work in JK Agrigenetics Ltd. (JK Organization).
Once again thanks a lot sir.....
Regards, Prakhar

From India, Hyderabad
Hi Prasad Ji,
As ESI has increased the ESI Deduction Slab from Rs. 10,000/- to 15,000/- and my monthly gross salary is Rs. 15,260/-. Now, am I able to get the ESI Services. I contacted my Finance Department and they told me that I am not eligible to get this facility.
Now, my question is that is there any provision or way so that I can avail this facility. Ofcourse, it is not possible for me to reduce my salary to get ESI Facility, but apart from this plse suggest me that is there any way so that I can get ESI facility... Plse revert.
Thanks,
Prakash Singh

From India, New Delhi
WOnderful discussion and you great ppl have solved all my doudts... I am really thankful to Citihr......... such talented ppl are thr to extend thr help... :)
From India, Ahmadabad
Sir,
as per the above discussion,
If employees will come out the ESI Scheme in between the contribution period, than employer is liable to pay the remain employee contribution or should be deducted from the employee's salary upto the contribution period of the six months. please clarify.

From India, Bareli
Dear Niraj,
Any contribution to be paid towards ESI, whether the employee earns less than or more than 15000 is to be deducted from the salary of the employee. Employee's share of contribution (1.75%) is always to be deducted from the salary of the employee. In case an employee leaves the company while he/she has yet to pay towards ESI for next few months to complete the payment through the contribution period (1st April to 30th September or 1st Oct to 31st March), the company is not liable to keep paying through the contribution if the employee has left the organisation.
Hope it is clear.

From India, Pune
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