Dear Colleagues, I have faced a problem regarding ESIC contributions. Please go through the following and suggest.
Previously at our factory, OT was paid in cash and did not show in the register. Now we are paying OT with wages in individual's Bank a/c. Before as OT was not shown in the register so statutory deductions calculation was made only on wages and that's the reason previously ESI deduction was lesser than current.
Now the situation is that worker is not willing to pay this excess payment and regarding that, I wish to share that more of the employees get more than 15000 as wages per month including OT.

From India, Mumbai
Harsh Kumar Mehta
Consultant In Labour Laws/hr
Am - Hr & Admin
+1 Other

Harsh Kumar Mehta

1. Sir, Overtime (OT) amount is a part of wages as defined under ESI Act, 1948 and rules/regulations framed thereunder.
2. However, on the basis of amounts of OT,the employee cannot be exempted even though his total wages after including the amount of OT exceeds Rs. 15000/- (present coverage limit) per month (Rule 50 of ESI (Central) Rules, 1952). Even if the amount of OT was paid in cash at any time is no basis for non-compliance since if as and when any verification of records is done by the ESIC officials (SSO), he can point out the default at the level of employer and claim contribution on such omitted wages.

From India, Noida
Wish my heartfelt thanks to you. I know all what you have written. But in factory I could not make the workers understand these things. Since the service of enrolled doctors are not good, the hospitals are not available easily so nobody wants to pay for esi.
In this cenarion as a HR Manager when I try to find a win-win situation. I can only do one thing that I have to pay OT amount in such nomenclature that ESIC will not applicable on it. Please Help.

From India, Mumbai
Harsh Kumar Mehta

1. Sir, there is no such formula as you desire. However, in case you find any shortcoming in delivery of medical services, you or your principal employer can discuss the issue with the head of the medical services of the area viz.-Medical Supdtt. ESIC Hospital, or Incharge, ESI Dispensary.
2. You can also bring such short-comings in medical facilities of ESIC to the notice of Regional Director or Hqrs. office of ESIC .

From India, Noida
I think washing allowances is not covered under ESIC. Pls correct if it is wrong.... Amol AM- HR & Admin
From India, undefined
I need help New Factory Establishment documents & Form required. MPCB,MIDC plot,Electrical connection,Water Connection,Factory licenses
From India, Baramati

Your com[any can devise a health insurance policy with some reliable health insurance company, which gives better facilities than ESI. Simultaneously apply to ESI authorities to exempt your company from application of ESI provisions and on receiving such exemption implement the health insurance policy. This is allowed under ESI Act.
A S Bhat

From India, Pune
Dear Sir, Who getting more then 21000 Gross salary we have to give WC or EC policy for that have any notification. If yes please send with us.
From India, Bengaluru

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