Dear Sir/Mam, I represent an 18 year old embedded company located in Bangalore with more or less 80 employees Head count. we have private insurance for all employees but not ESI. Our organization have 21 employees under 10,000 CTC per month, which includes: Technicians, Office Assistants, Front office, Trainees, Apperntice employees. I have some doubt on ESI & hope you will help me in solving them..
1. Is ESI a mandatory for employees in an organization.
2. Trainees or apprentice eligible for ESI.
3. Any other alternative in place of ESI, as other corporate private Insurance.
4. What are the repercussions, if rules not followed with ESI act in the organization.
Looking forward to hear from you.
From India, Bangalore
Acknowledge(0)
Amend(0)
41. Is ESI a mandatory for employees in an organization.
2. Trainees or apprentice eligible for ESI.
3. Any other alternative in place of ESI, as other corporate private Insurance.
4. What are the repercussions, if rules not followed with ESI act in the organization.
Looking forward to hear from you.
From India, Bangalore
Acknowledge(0)Amend(0)
Dear friend,
Employee under ESI Act - ‘Employee’ means any person employed for wages in or in connection with work of a factory or establishment to which the ESI Act applies. Earlier employees drawing wages upto Rs. 6,500 per month were covered under the ESI Act scheme. [Section 2(9)]. However, w.e.f 1st April 2004, this wage ceiling has been increased to Rs. 7,500 per month again wage ceiling has been increased to Rs.10,000/- (now / at present).
Employees include * persons employed through contractor * Apprentices other than those covered under ‘Apprentices Act’ * Persons employed in administration office, department or branch for purchase or sale of products. * Casual workers engaged in work incidental to or connected with work of factory or establishment * Employees working at head office when factory is located at different place * Canteen staff, watch and ward staff are employees * Staff in hospital attached to factory are employees. - - Members of Indian Naval, Military or Air Forces are excluded.
Following are not Employees - * Persons drawing wages over Rs. 7,500 per month * member of Army, Navy or Air Force. * Partners of firm are not employees even if they are drawing wages - RD, ESIC v. Ramanuja Match Industry AIR 1985 SC 278 = 1985(1) SCC 218 = 1998(6) SCALE 38 * Persons employed in Government establishments. * construction workers engaged in raising additional building subsequent to initial set up of factory.
so, blow Rs.10,000/- those who are getting, Casual, Contract employees all are eligible for ESI Payment even though company has their own private policies.
If more than Rs.10,000/- they will not comes under ESI, but they will eligible for workmen compensation act.
hope u get the idea
regds...
From India, Kochi
Acknowledge(0)Amend(0)
Employee under ESI Act - ‘Employee’ means any person employed for wages in or in connection with work of a factory or establishment to which the ESI Act applies. Earlier employees drawing wages upto Rs. 6,500 per month were covered under the ESI Act scheme. [Section 2(9)]. However, w.e.f 1st April 2004, this wage ceiling has been increased to Rs. 7,500 per month again wage ceiling has been increased to Rs.10,000/- (now / at present).
Employees include * persons employed through contractor * Apprentices other than those covered under ‘Apprentices Act’ * Persons employed in administration office, department or branch for purchase or sale of products. * Casual workers engaged in work incidental to or connected with work of factory or establishment * Employees working at head office when factory is located at different place * Canteen staff, watch and ward staff are employees * Staff in hospital attached to factory are employees. - - Members of Indian Naval, Military or Air Forces are excluded.
Following are not Employees - * Persons drawing wages over Rs. 7,500 per month * member of Army, Navy or Air Force. * Partners of firm are not employees even if they are drawing wages - RD, ESIC v. Ramanuja Match Industry AIR 1985 SC 278 = 1985(1) SCC 218 = 1998(6) SCALE 38 * Persons employed in Government establishments. * construction workers engaged in raising additional building subsequent to initial set up of factory.
so, blow Rs.10,000/- those who are getting, Casual, Contract employees all are eligible for ESI Payment even though company has their own private policies.
If more than Rs.10,000/- they will not comes under ESI, but they will eligible for workmen compensation act.
hope u get the idea
regds...
From India, Kochi
Acknowledge(0)Amend(0)
Hi Jagadish,
Trainees are out of ESI as they are not employees of the organization and the compensation paid to them is referred as Stipend and not termed as Salary.
There is a Provision in ESI Act when the employer provides a better insurance Scheme than ESI , the organization is exempted from the same
Regards
Madhurima
From India
Acknowledge(0)Amend(0)
Trainees are out of ESI as they are not employees of the organization and the compensation paid to them is referred as Stipend and not termed as Salary.
There is a Provision in ESI Act when the employer provides a better insurance Scheme than ESI , the organization is exempted from the same
Regards
Madhurima
From India
Acknowledge(0)Amend(0)
Be clearly understood only Trainees under the Apprentices Act, 1961 are excluded and not the Trainees under the Company's scheme or certified standing orders of the company even if they are being paid stipend.
ak malhotra
Sr General Manager
From India, Guwahati
Acknowledge(0)Amend(0)
ak malhotra
Sr General Manager
From India, Guwahati
Acknowledge(0)Amend(0)
dear
trainees apppointed through apprentice act are only exempted under ESI otherwise not.
there is no alternate of ESI ,you may have good insurance scheme but ESI act will be applicable to you.
as madurima mentioned no where it is mentioned in the act that if u have better scheme u can be exempted from provisions of this act.
tks
j s malik
From India, Delhi
Acknowledge(0)Amend(0)
trainees apppointed through apprentice act are only exempted under ESI otherwise not.
there is no alternate of ESI ,you may have good insurance scheme but ESI act will be applicable to you.
as madurima mentioned no where it is mentioned in the act that if u have better scheme u can be exempted from provisions of this act.
tks
j s malik
From India, Delhi
Acknowledge(0)Amend(0)
Hi,
Only the health care industry, private medical etc or the industry who are having their own medical facility like (TATA, Birla etc) & simultaneously they are offering other benefits like mediclaim. GPA etc whose service is no doubt better than the service providing by the ESI. Only the employees of such kind of establishment would be exempted from the ESI. But before that prior intimation should be given to the ESIC when the employer going to expel the service of ESI.
Regards
Sidharth
From India, Bhubaneswar
Acknowledge(0)Amend(0)
Only the health care industry, private medical etc or the industry who are having their own medical facility like (TATA, Birla etc) & simultaneously they are offering other benefits like mediclaim. GPA etc whose service is no doubt better than the service providing by the ESI. Only the employees of such kind of establishment would be exempted from the ESI. But before that prior intimation should be given to the ESIC when the employer going to expel the service of ESI.
Regards
Sidharth
From India, Bhubaneswar
Acknowledge(0)Amend(0)
Hi All, Other than Apprentices (Enrolled in Apprenticeship Board) everyone is covered under ESI.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Is this applicable to software firms too? We are providing health insurance for all our staff.
From India, Kochi
Acknowledge(0)Amend(0)
From India, Kochi
Acknowledge(0)Amend(0)
if a person came to the premises to do some work and give a bill for labour charges and we have pay him Rs. 600/day. IS ESI deducted ? as some people calculating and connecting with this to exemption rate of 15000/- ( as per Rs. 600/day his monthly income is Rs/ 18000/pm) hence he is exempted from esi.
Experts please clarify the doubt.
From India, Gurgaon
Acknowledge(0)Amend(0)
Experts please clarify the doubt.
From India, Gurgaon
Acknowledge(0)Amend(0)
Dear All,
I am having doubts regarding ESIC. As per my understanding, except for Apprentices training, all trainees should come under ESIC. However, when we receive trainees from colleges for Industrial training who are supposed to receive 2000 per month, are they eligible for ESIC or PF? If yes, then what is the meaning of Minimum Wages?
Thank you.
From India
Acknowledge(0)Amend(0)
I am having doubts regarding ESIC. As per my understanding, except for Apprentices training, all trainees should come under ESIC. However, when we receive trainees from colleges for Industrial training who are supposed to receive 2000 per month, are they eligible for ESIC or PF? If yes, then what is the meaning of Minimum Wages?
Thank you.
From India
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
ESI applicable to software development companies - Bom HC 2012.pdf
ESI-Not-applica ble-on-Conveyan ce-Allowance.do c