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R B Yadav
Advocate & Management Consultant On Labour
Sr. Executive - Hr & Admin
Engineering Services - Qa&i
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Hi All, Can someone please help with the current/sample pay structure applicable for employees covered under ESI. Thanks
From India, Mumbai
Pls note that ESI is applicable upto Rs. 15000/- (Gross) to an employee and it is deducted almost at Gross Salary except some specific allowances. If you are providing with some of the allowances on monthly basis, obviously it will be applicable upon all allowances.
Please specify your required about the pay structure so that we could better help you.
R B Yadav

From India, Mumbai
Dear Akag, Ceiling Value for ESIC is 15,000 (Gross) w.e.f. 01/05/2010. Employee’s contribution is 1.75% Employer’s contribution is 4.75% Regards, Ms.Mrunal Tambe
From India, Pune
Dear sirs, suppose if one employee salary 14500/- month as gross. In Feb 2013 if he do over time and get Rs. 1000/- additionally. Shall we pay for Rs. 14500/- or 15500/- to calculate the ESI. Thanks
From India, Secunderabad
Yes Mr. Raju,

You need to ESI on 15500.


In the case of the employer as and when the employer finds the need to have work done expeditiously, in addition to the normal work during the course of the working hours, the employer offers to the employee to do the overtime work after the working hours. When employee does overtime work it amounts to the acceptance for the same, hence there emerges concluded implied contract between the employer and the employee. Both the remuneration received during the working hours and overtime constitutes a composite wage and thereby it is a wage within the meaning of Sec.2(22) of the ESI Act. Therefore, the contribution is payable on the overtime allowance. However, overtime allowances will be considered as wage for the purpose of charging the contribution only and will not be considered for the purpose of the coverage of the employee under the Scheme.

The same view was held by the Supreme Court in its judgement delivered on 6.11.96 in the case of Indian Drugs & Pharmaceuticals Ltd. Vs. ESIC, in Civil Appeal No.2777 of 1980.

(Old instructions issued vide memo No.3-1(2)/3(1)/68 dt. 31.5.68).

From India, Kota
Benefits: All are cash benefits except Medical benefit in below mentioned list
• Medical Benefits – Self / Family
• Sickness benefit - Self
• Maternity Benefit - payable for a period of 12 weeks (84 days) on production of Form 18.Maternity bonus is also there. That is Rs.1000 (W.E.F. 01/04/2003) - Self
• Disablement benefit - Self
• Dependent Benefit - Dependants
• Funeral Benefit – Onetime payment of Rs.10, 000 (Amendment – 01.04.2011 earlier it was 5000) to meet funeral expanses of the IP.

From India, Kota
Call me at 09961266966 to get the components of wages which are reckoned for ESI. VARGHESE MATHEW Base India Cosultanvy Edapazhanji ,Trivandrum 14
From India, Thiruvananthapuram
Dear All,
Ours is a construction company takes up work even in ESI implemented areas also.
I have a doubt whether ESI is applicable for greenfield project also. i.e. the project
constn. starts from scratch.

From India, Bangalore
Dear Ramesh,
For ESI if in the beginning month if you have employed 10 or more employees then you are applicable for ESI, you have to apply for ESI Registration, and if all the 10 employees gross salary is within Rs.15,000/- then ESI contribution is necessary, if any of the employees gross is above Rs.15000 you can exclude them from ESI Contribution

From India, Bangalore
Dear Bosa;
If yours is an establishment coverable under ESI Act and if your project is in an implemented area then ESI is applicable.The nature of your project is immaterial .Or youmay take exemption from appropriate govt.
Varghese Mathew
Baseindia Consultants
Trvandrum 14

From India, Thiruvananthapuram

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