Hi All, Can someone please help with the current/sample pay structure applicable for employees covered under ESI. Thanks
From India, Mumbai
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From India, Mumbai
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Dear,
Please note that ESI is applicable up to Rs. 15,000/- (Gross) to an employee and it is deducted almost from the Gross Salary, except for some specific allowances. If you are providing some allowances on a monthly basis, it will obviously be applicable to all allowances.
Please specify your required pay structure so that we can better assist you.
Regards,
R B Yadav
Advocate
From India, Gurugram
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119Please note that ESI is applicable up to Rs. 15,000/- (Gross) to an employee and it is deducted almost from the Gross Salary, except for some specific allowances. If you are providing some allowances on a monthly basis, it will obviously be applicable to all allowances.
Please specify your required pay structure so that we can better assist you.
Regards,
R B Yadav
Advocate
From India, Gurugram
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Dear Akag, Ceiling Value for ESIC is 15,000 (Gross) w.e.f. 01/05/2010. Employee’s contribution is 1.75% Employer’s contribution is 4.75% Regards, Ms.Mrunal Tambe
From India, Pune
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From India, Pune
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Dear sirs, suppose if one employee salary 14500/- month as gross. In Feb 2013 if he do over time and get Rs. 1000/- additionally. Shall we pay for Rs. 14500/- or 15500/- to calculate the ESI. Thanks
From India, Secunderabad
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From India, Secunderabad
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Dear Mr. Raju,
You need to include ESI on 15500.
OVERTIME ALLOWANCE
In the case of the employer, as and when the employer finds the need to have work done expeditiously, in addition to the normal work during the course of the working hours, the employer offers the employee the option to do overtime work after the working hours. When an employee does overtime work, it implies acceptance of the same, thereby establishing an implied contract between the employer and the employee. Both the remuneration received during the working hours and overtime constitute a composite wage, making it a wage within the meaning of Sec.2(22) of the ESI Act. Therefore, contributions are payable on the overtime allowance. However, overtime allowances will only be considered as wages for the purpose of contribution calculation and not for determining the coverage of the employee under the Scheme.
This viewpoint was also upheld by the Supreme Court in its judgment delivered on 6.11.96 in the case of Indian Drugs & Pharmaceuticals Ltd. Vs. ESIC, in Civil Appeal No.2777 of 1980.
(Old instructions issued via memo No.3-1(2)/3(1)/68 dated 31.5.68).
From India, Kota
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You need to include ESI on 15500.
OVERTIME ALLOWANCE
In the case of the employer, as and when the employer finds the need to have work done expeditiously, in addition to the normal work during the course of the working hours, the employer offers the employee the option to do overtime work after the working hours. When an employee does overtime work, it implies acceptance of the same, thereby establishing an implied contract between the employer and the employee. Both the remuneration received during the working hours and overtime constitute a composite wage, making it a wage within the meaning of Sec.2(22) of the ESI Act. Therefore, contributions are payable on the overtime allowance. However, overtime allowances will only be considered as wages for the purpose of contribution calculation and not for determining the coverage of the employee under the Scheme.
This viewpoint was also upheld by the Supreme Court in its judgment delivered on 6.11.96 in the case of Indian Drugs & Pharmaceuticals Ltd. Vs. ESIC, in Civil Appeal No.2777 of 1980.
(Old instructions issued via memo No.3-1(2)/3(1)/68 dated 31.5.68).
From India, Kota
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Benefits: All are cash benefits except Medical benefit in below mentioned list
• Medical Benefits – Self / Family
• Sickness benefit - Self
• Maternity Benefit - payable for a period of 12 weeks (84 days) on production of Form 18.Maternity bonus is also there. That is Rs.1000 (W.E.F. 01/04/2003) - Self
• Disablement benefit - Self
• Dependent Benefit - Dependants
• Funeral Benefit – Onetime payment of Rs.10, 000 (Amendment – 01.04.2011 earlier it was 5000) to meet funeral expanses of the IP.
From India, Kota
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• Medical Benefits – Self / Family
• Sickness benefit - Self
• Maternity Benefit - payable for a period of 12 weeks (84 days) on production of Form 18.Maternity bonus is also there. That is Rs.1000 (W.E.F. 01/04/2003) - Self
• Disablement benefit - Self
• Dependent Benefit - Dependants
• Funeral Benefit – Onetime payment of Rs.10, 000 (Amendment – 01.04.2011 earlier it was 5000) to meet funeral expanses of the IP.
From India, Kota
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Call me at 09961266966 to get the components of wages which are reckoned for ESI. VARGHESE MATHEW Base India Cosultanvy Edapazhanji ,Trivandrum 14
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Dear All,
Our construction company takes up work even in areas where ESI is implemented. I have a doubt about whether ESI is applicable for a greenfield project as well, i.e. a project where construction starts from scratch.
Regards,
Ramesh
From India, Bangalore
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Our construction company takes up work even in areas where ESI is implemented. I have a doubt about whether ESI is applicable for a greenfield project as well, i.e. a project where construction starts from scratch.
Regards,
Ramesh
From India, Bangalore
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Dear Ramesh,
For ESI, if in the beginning of the month you have employed 10 or more employees, then you are eligible for ESI. You must apply for ESI Registration. If the gross salary of all the 10 employees is within Rs. 15,000, ESI contribution is mandatory. If any employee's gross salary is above Rs. 15,000, you can exclude them from ESI contribution.
Regards,
Lakshmi
From India, Bangalore
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For ESI, if in the beginning of the month you have employed 10 or more employees, then you are eligible for ESI. You must apply for ESI Registration. If the gross salary of all the 10 employees is within Rs. 15,000, ESI contribution is mandatory. If any employee's gross salary is above Rs. 15,000, you can exclude them from ESI contribution.
Regards,
Lakshmi
From India, Bangalore
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Dear Bosa,
If your establishment is covered under the ESI Act and your project is in an implemented area, then ESI is applicable. The nature of your project is immaterial. Alternatively, you may seek exemption from the appropriate government.
Varghese Mathew Baseindia Consultants Trivandrum 14 9961266966
From India, Thiruvananthapuram
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If your establishment is covered under the ESI Act and your project is in an implemented area, then ESI is applicable. The nature of your project is immaterial. Alternatively, you may seek exemption from the appropriate government.
Varghese Mathew Baseindia Consultants Trivandrum 14 9961266966
From India, Thiruvananthapuram
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