Hr & Administrative Manager
The Act was originally applicable to non-seasonal factories using power and employing 20 or more persons; but it is now applicable to non-seasonal power using factories employing 10 or more persons and non-power using factories employing 20 or more persons.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.
The existing wage-limit for coverage under the Act, is Rs.10,000/- per month (with effect from 1.10.2006).
15th May 2009 From India, Madras
15th May 2009 From India, Delhi
The wage ceiling for coverage of employees (excluding remuneration for over-time work) is Rs. 10000/- (w.e.f 1st October, 2006). Earlier it was Rs. 7,500/-per month w.e.f. 1.4.2004 (Rule 50 of ESI (Central) Rules 1950).
15th May 2009 From India, Mumbai
Under the provision of ESI Act the defination of wages is very wide. Now a dys every payment payment made to workman is treated as wages and the contributions are payable by employee and employer. Under Section 2(22) 'wages' means all remunertion paid or payable in cash to an employee if the terms of contract of employemnt, expressed or implied were fullfilled and includes any payment to an employee in respect of any period of authorised leave, lock out, strike which not illegal or layoff and other additional remuneration it any paid at intervals not exceeding two months, but does not include
(a) any contribution paid by an employer to any pension fund or provident fund or under this act,
(b) any travellig allowance or the value of any travelling concession,
(c)any sum paid to the person employed to defray expenses entailed on him by nature of his employemnt or
(d) any gratuity payable on discharge
In short any payment made to worker regular basis shall be treated as wages and contributions are payable.Payment of increment arrears will be treated as wages and contribution are payable, where as agreement arrears will not. Annual bonus is not wages under ESI Act where as production/incentive bonus which is paid every month will be wages. Leave encashment during the period of service may be treated as wages whereas leave encashment at time of discharge or superannuation will not be treated as wages.
In your case the additional payment of Rs 500/- will be treated as wages and contribution will be payable. For more details/clarification you may contact me.
Hope this suffice your purpose.
30th May 2009 From India, Pune
If ESI is not applicable to any one time payments, why does it apply on onetime payments made to people such as electrician, plumber, carpenter, coolie or hamal? Kindly let us know ASAP . My email address is .
25th February 2014 From India, Mumbai