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We have Annual Maintenance Contract in a Central Government Company and this company insist for ESIC Policy as well as W. C. Policy, hence, I have following query for ESIC V/S WC Policy Act:
01. If some employees has more than Rs.15000/= wage on fixed salary/month basis and he draws during this month less than Rs.15000/= but above Rs.6500/=, shall we have to deduct the ESIC Premium of 1.75% of his and deposit 4.75% of ours?
02. If Fixed monthly salary is more than Rs.15000/= then Employee required W. C. Policy as he/she not covered under ESIC ACT AND MAY DRAW LESS THAN RS. 15000/= in some months of a year?:
03. For Central Government Company, we have deployed X number of Employees for Annual Maintenance Contract, then we have to take ESIC AND W. C. Policy both for X number or some separate numbers like Y for ESIC ACT and Z for WC Policy (X = Y + Z)shall be availed or not.
04. Shall it be recommended to take W. C. Policy for exempted Employee for ESIC Act?
Recently Healthcare services are covered under ESI scheme from 2/5/12 onwards as per the law enacted ny the govt.
Ours is a hospital service providers having morethan 1500staff. Can any of you kindly guide us in related to the leave claims, dependents treatment eligibilities, eligibility cover up periods for the claims for dependents and self. etc.,
Forms used in ESI for claims, registeration purpose if the dependents lived in outstations ets.,since
We are very new to this scheme.
Please note that Persons not covered under ESI need to be protected under WC.
Employee eligible to draw salary of Rs.15000/- per month but drawing salary less than 15000/- due to loss of pay will remain outside the scope of ESI.
If you have Y employees covered under ESI then the Remianing Z needs to be covered under WC.
Hope this helps
All employees should be insured who are working with your organisation either regular or contract.
Employees has to be covered under ESI who are getting salary upto 15,000/-.
Employees has to be covered under W C Policy who are getting salary more than 15,000/-.
This is simple equation.
Labour Law Consulting & Outsourcing
Q no 1 if any employee earn 1501 and above you do not have to diduct ESI but if he or she is 1500 and low then you have to deduct 1.75 from the employee and company will provide 4.75 total 6.50% you have to deposit to ESI. monthly calculate on gross for each employee earn 1500 and less.
hope its clear.
1. In regard to your query no 1, I wish to clarify that probably you are confused to mix up PF with that of ESI Act.The limit of Rs.6500/-& above is relevant for deduction of PF contribution.The ESI Premium for employee and employer has to be made till an employee continue to draw salary up to Rs.15000/-,it will stop thereafter.
2.For your query no 2, If an employee is appointed on a Fixed monthly salary for more than Rs.15000/- or his salary exceeds Rs.15000/-any time, then his deductions towards employee contribution shall continue till the end of the contribution period,which is April to September and October to March but he shall be entitled for the benefits accruing under the Scheme for next six months of his corresponding benefit period which is January to June & July to December.Thereafter he will be required to be covered under W. C. Policy.
3. you query is not amply clear, but if you are asking the mode of coverage of two set of employees, You need to cover only the employees under the WC policy, who have gone out of ESI coverage,since their salary exceeds Rs.15000/-
04. Yes,you to required to take W. C. Policy for exempted Employee.
Member since Aug 2011
Of late the ESI corporation has made it compulsory for the coverage of DGR sponsored Ex- Army security guards. It is clarified that even though DGR sponsored Ex- Army security guards employed by you are getting medical facility from Military Hospital,even then they will be required to be covered under ESI. The background is that the ESI is having host of benefits viz Sickness benefit, disablement benefit (employment injury), Maternity benefit,Rehabilition Allowance etc. besides providing artificial limbs & appliances,which cannot be extended by the Military Hospital.Even it was held by Supreme Court in their judgement in Christian Medical College,Vellore vrs ESI Corporation, 2001 LLR 60 (SC) that even ESI Act will be applicable to the hospital staff engaged by the medical collge for running its auxiliary services.
Member since Aug 2011
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