Dear seniors,
I want to know if the employees salary is increased from 13000/- to 16000/- than his ESIC contribution will be stopped immediately or will it be effective after the return goes for that particular period.

From India, Delhi
dear vanu
actually there will be two 6 months contribution viz.,
1. from april to september --called as contribution period
2. from october- march------called as benefit period
ok..when an employee salary increased above the limitation then the company has to deduct his contribution till september month. and from october dont deduct his contribution.ok
this is how it is calculated got it.

From India, Bangalore
Dear Sir ,
Is it mandatory for every Pvt Ltd Company to include ESIC in their payroll. or does it depends by State Laws,,
Please let know in which business sectors it can be included. viz manufacturing, service, healthcare etc
Awaiting reply

From India, Bangalore
dear chaplin
if the employee strenght cross 10 means more than 10 , then the company has to go for ESI and its a social security for employees so its mandatory, whether its a manufacturing or service industry or a real estate industry ESI is compulsory

From India, Bangalore
Dear Sir,
I am working in healthcare sector ( Pvt. Ltd. firm ) located in Assam and till date payroll includes Basic, HRA, TA , DA , EPF. Now I am planning to add ESIC or Mediclaim for the betterment of Employees. .As per I know Mediclaim and ESIC are both for health insurances,Now my question is :-
1) Do the company has to go for ESIC, or opt for MEDICLAIM, which one is better and mandatory ?
2) Does ESIC coverage stops once employees who salary is more than 15000 pm ?
3) Does an employer is eligible for exemption from ESI under Section 87 of the ESI Act. If the What are the criteria. ( as our is a
Healthcare Company )
4) If the area where the comapny is situated is quite away from the ESI dispensary will the ESI Corporation cover the organization under the ESI act ? If Yes , please help me out the name of the STATE located in NORTHEAST India ?
waiting for your prompt replies!!

From India, Bangalore
Dear Chaplin,
First of all first check out, whether your geographical area is covered under esic schemed or not? if yes, then below are answer on your queries.
1) if you would like to go for other opt. instead of ESIC, Then, you have to approved that, benefits of that, policy are more better that ESIC benefits.
2) Once any employees ESIC coverage stop. so, company has to provide the health insurance to that employees as per Workmen's compesatioin act.
3) as mentioined in point 1.
Tushar Swar

From India, Mumbai
Dear vandana,
@ venugopala : The explanation given by u is wrong.
There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under.
Contribution period******************Corresponding Benefit period
1st April to 30th Sept****************1st January to 30th June of the following year
1st Oct. to 31st March***************1st July to 31st December of the year following
also even if the employee gets a salary hike above 15000(gross) he should contribute till the end of the corresponding contribution period.
eg: if an employee gets an increment & salary above 15000 in may he has to contribute till september of that year.( Many organisation doesnt contribute till the contribution period because he would be covered under mediclaim policy, but as per the act he to contribute till the end of contribution period for that half year. The problem arises only when ESI inspection is done).

From India, Mumbai
Dear Shenbagarajan K,
You are absolutely right, there are two contribution periods...and he will have to continue the payment till he reaches the end of the cycle ie: either Sep or Mar
Savio F

From India, Mumbai

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