Esi

can any tell me . what is the format of paying esi like for pf we have challan system .

regards

anand

Dear Sivadas,

You have to deduct and contribute ESI on the salary excluding Travelling/ Conveyance allowance. At the same time Special Pay/ Allowance will be treated as part of salary unless it is proved that the same is paid only to a particular employee or class of employees as part of conditions of employment.

Regards,

Madhu.T.K

In case gross salary (Basic+DA+HRA+Special pay) of an employee is more than 10,000/- p.m. is he automatically exempted from the scheme?

Dear Sivadasan,

As for as ESI washing allowance is exempted rest of the allowances are to be included including Conveyance Allowance.

Thanks.

Dear Siva,
you can exempt the Conveyance part from the ESI Contribution.

CONVEYANCE ALLOWANCE
Conveyance allowance is paid to the employee to compensate the expenses incurred by the employees on travelling etc. The travelling allowance or value of any travelling concession is also being paid to the employees in the nature of conveyance allowance, which is neither wages for the purpose of coverage of employees under Sec.2(9), nor it is treated as wages for the payment of contribution under Section 2(22) of the ESI Act.

In the case M/s.Hyderabad Asbestos Cement Products Vs. ESIC, Punjab & Haryana High Court, Chandigarh as well in the case of M/s.Harihar Polyfibres, the Supreme Court have held that conveyance allowance is not wage under Section 2(22) of the ESI Act.
(Earlier instructions were issued by this office vide No.P.11/13/97-Ins.IV dated 27.1.97.)

__________________
Everyone thinks of changing the world, but no one thinks of changing himself.....

As per Sec. 90 (Exemption of factories or establishments belonging to government or any local authority) The appropriate government may, after consultation with the Corporation, by notification in the Official Gazette and subject to such conditions as may be specified in the notification, exempt any factory or establishment belonging to [* * *] any local authority, from the operation of the Act], if the employees in any such factory or establishment are otherwise in receipt of benefits substantially similar or superior to the benefits provided under this Act.

Can any body tell what is the procedure for seeking exemption under Section 90 as quoted above.

let me know if gross salary is Rs 11350 then he will not to processed this ESI Fascility

yes anurag is right ...

__________________
Regards
Arun J.

Mr. Rajiv Verma has clarified the matter quoting the relevant section of the ESI Act and ruling by the apex court in this regard. Therefore, there seems to be any room for much controversy in this regard.

Excemption: An employee who is in receipt of salary not less than Rs 10000 is exempted from ESI. However, the composition of his salary is also to be considered for deciding whether he is out of coverage or not. As such an employee with Rs 9900 as salary (Basic + DA + HRA+ Special Pay etc) and getting Rs 101 as Travelling Allowance as part of salary will get Rs 10001 as salary but will not be exempted from ESI and is subject to deduction and contribution towards ESI at the prescribed rates (1.75 % and 4.75%) on Rs 9900.

If the salary of a covered employee increases and becomes more than Rs 10000 he will become out of cover of ESI but only after the current contribution period is over. Therefore, if the salary crosses Rs 10000 in May he has to contribute till Sept. Under EPF an employee once covered will continue to be covered irrespective of any salary increase.

An establishment may be declared as exempted from the operation of the Act when the ESI Corporation is satisfied that the employees of the company are in receipt of better facilities than that provided by the ESIC. The duty to show this lies with the company.

Like Provident Funs remittance, separate challans are available for remittance of ESI contributions.

Regards,

Madhu.T.K

Madhu,
can u tell me the procedure for seeking exemption, if we have better facilities than provided in ESI.