Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
Dear All,
Since ESIC Act draft notification is on 6.10.16, its implementation will take effect only from & after the date of Gazette notification. This being financial bill it needs to be passed by both Loksabha & Rajyasabha and then by Hon.President. Till then, the existing rate shall apply.
Moreover, talking on retrospective date - it seems bit complicated as there could be chances of employees leaving the organisation prior to gazette notification & implementation as such collecting contribution from such employees is impractical.

1. Sir, the wage ceiling so far as ESI Act, 1948 is concerned is laid down under ESI (Central) Rules, 1950 for which the appropriate government i.e. Ministry of Labour, Central Govt. is competent to amend. There is no requirement of prior approval from Lok Sabha or Rajya Sabha. No need of assent of Hon'ble President. After issue of final notification, the copies of such notifications are simply placed in next session for the information of Hon'ble Members of Parliament.
2. Proposal to amend any provisions of Rules in any enactments are neither ordinary Bills, nor Financial Bills. Even otherwise also ESI Act, 1948 has nothing to do with the finances of the Consolidated Fund of India.

Dear All,
Can anyone confirm the ESIC notification regarding limit of coverage of Rs.21000/- from October 2016. Please provide if final notification is arrived or provide your views if final notification is not released? We need to implement from 1st Oct without final notification or wait for November 2016?
Sameer Sayyad

Attached Files
Membership is required for download. Create An Account First
File Type: pdf esic-rs-21000-applicable-wef-1st-oct-esic-draft-rules-notification-increase-limit-21000.pdf (225.6 KB, 1311 views)

Gazette Notification is expected to be released by November 2016. I suggest you to wait till notification. Even, I enquired with ESI officials and they are not clear on this.
There are two possibilities.
1. Effective date can be from the date of Notification or from 1st November 2016 or any other date after the notification date.
2. Since the contribution period is starting from October 2016, they may consider effective from October 2016. But, it is practically has many issues. So, I don't think this is possible.
So, I suggest you to wait till the official Gazette Notification. But, inform to your employees that this is happening.

Hello, It has been declared and notification has also released
@kanwar, Could please share the said notification, if any?? Please don’t share the Draft Rules Notification as it is not the final notification with effective date.
In our earlier Government gazette notifications, in enhancement of wages limit under ESIC legislation is prospective not retrospective and hence any gazette not published before 30.09.2016, can be treated as not implemented and you can continue to recover ESIC Contribution on Rs.15K only for next six months. Like bonus act, if at all notifications come from 1.10.2016, some vested interests shall bring it court and get the stay order for retrospective perod.
Dear Shashi, I think this is just a draft notification, therefore you should not deduct esic from oct 2016. Thanks
Mr Kanwar Pal, Could you Please share the notification or any related information ? Shijo George Kottayam, Kerala
We have also talk to esic inspector and director regarding esic deduction but he told me that there is no necessory to deduct esi from m/o October, 2016 or it is not applicable from october, 2016. Pls advice ?? what should I do ?

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2020 Cite.Co™