Dear Sir,
Regarding the coverage of ESI, I have the following doubt.
Some of the contract workers are working in our industry on piece rate and all these are covered under ESI. Most of these people and most of the times they are earning more than Rs. 15,000/- per month including overtime. They are requesting to bring them out of the coverage of ESI.
I informed to my boss that all these people should have fixed wage which should be more than Rs. 15,000/- then only we can bring them out of the coverage. But he is having opinion that since these people are drawing more on most of the times, they can brought out of the coverage.
What can we do? kindly clarify
GIRI
From India, Hyderabad
4Regarding the coverage of ESI, I have the following doubt.
Some of the contract workers are working in our industry on piece rate and all these are covered under ESI. Most of these people and most of the times they are earning more than Rs. 15,000/- per month including overtime. They are requesting to bring them out of the coverage of ESI.
I informed to my boss that all these people should have fixed wage which should be more than Rs. 15,000/- then only we can bring them out of the coverage. But he is having opinion that since these people are drawing more on most of the times, they can brought out of the coverage.
What can we do? kindly clarify
GIRI
From India, Hyderabad
Dear Giri, Overtime will not be considered for the exclusion from ESIC. Only fixed wages has to be considered whether to include or exclude an employee from ESIC. Regards, Kumar
From India, Chennai
From India, Chennai
Please see if the total piece rate earnings EXCLUDING overtime wages is more than Rs 15000. If so, you continue coverage till September and thereafter make them out of coverage.By the time, sometimes, the ESI wage ceiling will be revised. Any way, in the mid of the contribution period you cannot stop contributing.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
Dear Madhu garu
You are right in the middle of the contribution period we can exclude. But if he got more than 15,000/- salary (Piece rate) in October, November, December and got Rs. 12,000/- in January and February what is the position? Because he may got less than Rs. 15,000/- salary when dispatches are less during Jan to March. Then in such situations what rule will follow.
Kind Regards
M S GIRI
From India, Hyderabad
You are right in the middle of the contribution period we can exclude. But if he got more than 15,000/- salary (Piece rate) in October, November, December and got Rs. 12,000/- in January and February what is the position? Because he may got less than Rs. 15,000/- salary when dispatches are less during Jan to March. Then in such situations what rule will follow.
Kind Regards
M S GIRI
From India, Hyderabad
Since the case is about piece rate, it is difficult to build up a nominal salary for coverage and out of coverage. Therefore, in such cases, take the notional salary as salary for deciding whether the employee is under coverage or not. By notional salary we mean the salary which the employee would have earned if has worked for all the days with 100% capacity utilisation. Therefore, one or two month's earnings below 15000 will not make him covered since his average salary would be higher than Rs 15000.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
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ESI COVERAGE ON 1O EMPLOYEE0104201 1.pdf
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