Esi

I do not find any specific procedure either in Employees State Insurance (General) Regulations, 1950 or ESI (Central)Rules for claiming exemption u/s 90 or 91 of the ESI Act, 1948. Therefore, it is to be construed that a formal submission to the Regional Director, ESIC of the medical and other benefits being given to the employees with relevant documents in support of the same has to be made to start with. The Corporation will then make a detailed inquiry into the matter and if satisfy themselves that your company is providing better facilities, then naturally will grant exemption. For more details and clarity please contact the ESI Inspector of the local office of your area.

Also please ensure that your company is providing or will be able to provide facilities better than that offered by ESI because under ESI there are a lot of benefits available to the employees many of which are extended to the family members of the insured employees. Besides, ESIC takes the responsibility of workmen's compensation as well which would otherwise be a heavy load for the employer.

Regards,

Madhu.T.K

Thanks Madhu.

Hi Sivadasan

• As per ESI Act It is necessary to deduct ESI contribution on Gross salary excluding this - Not to be deemed as wages:
• contribution paid by the employer to any pension/provident fund or under ESI Act.
• Sum paid to defray special expenses entailed by the nature of employment - Daily allowance paid for the peried spent on tour.
• Gratuity payable on discharge.
• Pay in lieu of notice of retrenchment compensation.
• Benefits paid under the ESI Scheme.
• Encashment of Leave.
• Payment of Inam which does not form part of the terms of employment.
• Washing allowance.
• Amount towards reimbursement for duty related journey.

If your salary structure of our organization includes Basic, HRA, Special Allowance and Conveyance Allowance then it is necessary to deduct ESI contribution on gross excluding above wages/allowance.

Deepak Raj
New Delhi
9868941534