I have 2 questions in regard to ESI,
1. If a contract labour is paid @ Rs. 600/- per day and accordingly his monthly wages become Rs. 15600/- (i.e. 600*26), will he be out of the purview of ESI? and if the same person gets wages Rs. 12000/- @ 600*20 days in the next month will he again be coming under ESI purview?
Further if a contractor shows that his labour is getting monthly wages @Rs. 18000/- and thus is out of the purview of ESI and in every month gets salary below 15000/-(gross) due to proportioate reduction in wages due to absentism e.g. gets salary Rs. 12000/- for 20 days attendance (18000/30*20) then whether the person will be out of purview of ESI
2. My second question is one of our cont. Labour met with an accident inside our factory premises during work amd was taken to ESI hospital where he got the treatment. The contractor has their own esi code. The matter was intimated to ESI vide accident report by the contractor. Now the ESIC officials want to visit the site of the accident and accordingly asked the contractor for arrangement. As the contractor has own esi code then the contractor must deal directly to ESIC, then why ESIC is dragging us and wants to visit our premisese and as PE what should be our stand.
Rgds,
DG
From India, Delhi
41. If a contract labour is paid @ Rs. 600/- per day and accordingly his monthly wages become Rs. 15600/- (i.e. 600*26), will he be out of the purview of ESI? and if the same person gets wages Rs. 12000/- @ 600*20 days in the next month will he again be coming under ESI purview?
Further if a contractor shows that his labour is getting monthly wages @Rs. 18000/- and thus is out of the purview of ESI and in every month gets salary below 15000/-(gross) due to proportioate reduction in wages due to absentism e.g. gets salary Rs. 12000/- for 20 days attendance (18000/30*20) then whether the person will be out of purview of ESI
2. My second question is one of our cont. Labour met with an accident inside our factory premises during work amd was taken to ESI hospital where he got the treatment. The contractor has their own esi code. The matter was intimated to ESI vide accident report by the contractor. Now the ESIC officials want to visit the site of the accident and accordingly asked the contractor for arrangement. As the contractor has own esi code then the contractor must deal directly to ESIC, then why ESIC is dragging us and wants to visit our premisese and as PE what should be our stand.
Rgds,
DG
From India, Delhi
For applicability and coverage under ESI Act, its the monthly salary i.e 15000/- gross per month, month means 26 days salary.
So if any employees per day multiplied by 26 is over and above Rs 15000/- than ESI is not applicable.
if on any day or days, if employee gross salary is less than Rs 15000/- cosidering the per days wages and per say for 10/20/22 days, than still ESI shall not be applicable, he shall be out of coverage, considering his monthly wages.
Answer to your second question is, though the contractor is having separate ESI Code and he is doing all the formalities, but still the ESI authorities has right to inspect the cause of accident, spot verification etc, there is not harm in same, its within the right of ESI authorities as employees/workers working in your establishment/factories covered by factories Act as well as ESI Act, you are the principal employer for such employees.\
Regards
So if any employees per day multiplied by 26 is over and above Rs 15000/- than ESI is not applicable.
if on any day or days, if employee gross salary is less than Rs 15000/- cosidering the per days wages and per say for 10/20/22 days, than still ESI shall not be applicable, he shall be out of coverage, considering his monthly wages.
Answer to your second question is, though the contractor is having separate ESI Code and he is doing all the formalities, but still the ESI authorities has right to inspect the cause of accident, spot verification etc, there is not harm in same, its within the right of ESI authorities as employees/workers working in your establishment/factories covered by factories Act as well as ESI Act, you are the principal employer for such employees.\
Regards
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ESIC cir_for Coverage.pdf