Is a Daily Wage Worker Earning Rs. 390 Covered Under ESI If Paid Monthly?

Hi members,

As per the ESI Act, the salary for exemption is above Rs. 10,000 per month, which we all know. In case a specialized worker is engaged for daily wage, and his daily wage is Rs. 390, is he covered under the act? The payment will be calculated on a monthly basis and paid only at the end of the month. If the employee worked all days in a month (i.e., 26 days), his salary will be above the coverage limit. Is he covered under the act? In case you find any rulings, please share.

Regards,
Anand

Dear,

He will come under the category of an exempted employee. If someone is getting 385 per day, then only they will be covered under ESIC. If he works only for 10 days in a month and his earnings will be 3900 in a month, still he will not be covered under ESIC.

Thank you.

JS MALIK

Mr. Malik, thank you for that update. Have you come across the ruling anywhere? If you have it, kindly share. It would be most useful to me.

Rgds,
Anand

Dear,

Ruling for anything is required where the law is not clear. If the law is clear, then what ruling do you require?

Thanks,
J. S. Malik

Dear Mr. Malik,

I am writing to seek clarification on an issue regarding the exemption of employees under the ESI Act. An ESI inspector has advised me that exemption for a daily wager cannot be considered. However, upon reviewing the act books and journals, I was unable to find any mention of the daily wage amount. The act only references the monthly factor. I would greatly appreciate your assistance in resolving this matter.

Thank you.

Mr. Malik,

I also have the same query. I hired a person for the fitment of the production line at Rs. 300 per day, and in a month, he came to my factory for 23 days. Do I need to deduct ESI and EPF from him? Please respond.

Dear Yogesh,

I think your query should be clear from this conversation. You have deducted ESI but not PF. Anand, as an ESI inspector, asked you. He is totally wrong. As you can refer to the Payment of Wages Act, this monthly salary is for 26 days, and you can calculate daily wages by dividing 26. He is wrong in saying that daily wagers are not exempted from ESI.

Thank you,
JS MALIK