ESIC Applicability - Esi Applicability [Thread 26655]

Can anybody tell me esic is applicable all over india at same rate or at different rate ?

ESIC is central govt. scheme. Throughout whole India it has same rate of deudction.
Any further doubt, post is welcome
Regards
Prashant Patil

hi vijay kumar
esi is applicable to all over india except some ut
you can check employees state insurance corporation site it gives u all information including % to be deducted etc.
best of luck
kantha

ESIC is Employee State Insurance Contribution. Then how can it be a Central Government Scheme. Please revert.
Its applicable to all employees earning Rs.10000 or less per month.
Birendra Raj

Hi Birendra,
First I want to clear that ESIC is Employees State Insurance Corporation not contribution.
& I think state is included in its name because the hospitales run by ESIC is under state. But few days ago I heard that they are also under now in central control.
Regards
Prashant Patil

Dear Prashant,

My apologies for stating it as Contribution rather than Corporation.

Here is few facts on ESI ACT, 1948

The Act was originally applicable to non-seasonal factories using power and employing 20 or more persons; but it is now applicable to non-seasonal power using factories employing 10 or more persons and non-power using factories employing 20 or more persons.

Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.

The existing wage-limit for coverage under the Act, is Rs.10,000/- per month (with effect from 1.10.2006).

AREAS COVERED

The ESI Scheme is being implemented area-wise by stages. The Scheme has already been implemented in different areas in the following States/Union Territories

STATES

All the States except Nagaland, Manipur, Tripura, Sikkim, Arunachal Pradesh and Mizoram.

UNION TERRITORIES

Delhi, Chandigarh and Pondicherry

Trust it clarifies.

Regards

Birendra Raj

Hi Birendra Raj,
Your information is right.
And one thing, ESIC is applicable to only Muncipal Corporation (Urban) limits.
Regards
Prashant Patil

hi
the esi act is applicable to all factories and establishments all over the country.
this is only applicable to employees earning under 10000( ten k) a month and a percentage has to be cut form the employees pay 1.75%) and another percentage is to be paid by the employer (4.75%) of the pay of the employee
Total of 6.5% (4.75% + 1.75%) of wages are to be paid to SBI in Account number 1 which belongs to the Municipal Corporation on or before 21st of every month. This contribution is used for insuring the employees. After payment of the monthly contribution a Chalan called RC is given to the organization as proof of payment. This corporation is controlled by the central government which regulates the administration of ESI.
Employees earning less than Rs 40/- a day are exempted from payment of contribution. The employers share of contribution is, however, payable.
hope it proves helpful
all the best
regards
munmun