Esic - Pdf Download - Minimum Wages

According to the new amendment, the clause of with or without the the use of power is removed. also all factories with more than 10 workmen are covered.
The amendment is effective 01.06.2010. the gazette was on 25 May 2010.

The act of increasing salary of employees to avoid coverage of ESI is a foolish act on the part of IR departments. If the firm is not covered by ESI there should be some other Act, viz, Workmen's(Employees') Compensation Act, which makes it obligatory for the employer to take care of the medical expenses and compensation in case of employment injury and death and that would rather be higher than that payable to ESI Corporation by way of contribution. If, on the other hand,the employee is covered by ESI the entire liability in case of injury and death resulting from an employment injury will be borne by the ESI Corporation.

If you increase the salary to avoid ESI and later on the ESI also increase the wage ceiling for coverage (as it can do so) will you again go for a hike in tune with ESI wage ceiling?

Certainly, there are some returns to be sent and maintained if covered by ESI and there are some clerical works involved. Remember that an HR or IR person is paid for it also!

I do not think that any family will be so happy to be out of ESI. If you go through the facilities offered to the insured employees and their families you will find that no other medical insurance schemes will be better than ESI's schemes especially when you come across to meet with a major surgery or treatment for a major illness which can be done only in a super specialty hospital. Therefore, I do not think that getting out of coverage to become free from ESI Inspections and filing of ESI returns is to be recommended.

Regards,

Madhu.T.K

Yes It is correct. But the wage limit is only Rs. 15000/- but not 15,00,00/- as mentioned by Mr Madan. I hope it is a typographical mistake. The ESIC enhancement of wage limit is applicable from 01-05-2010 and not 01-04-2010.
sanagapalli

Dear Mr Nath
Your suggestion in column No.( ii)is not correct. As per the new amendment Act came into effect from 01-06-2010, for the purpose of coverage of any factory or establishment, all the persons irrespective of their salaries will be taken in to account and once the establishment is covered, only the persons drawing wages upto and including 15000/- are liable to be covered and pay the contributions in respect of them only. In your cited case, the establishment is employing 25 persons, out of which 16 persons are drawing wages of more than 15000/- and 9 persons are drawing wages of less than 15000/-. In such case also the establishment is definetely covered under the ESI Act, however the employer is liable to comply in respect of 9 employees only. This is the new amendment. I hope you have followed the new amendment.
with regards
sanagapalli
Gr I Manager ESIC (Retd)

Every factory whose employees are more than 20, has to be registered under ESI Act irrespective of their salary limitations.
Regards
PVVB KUMAR

Dear Mr
It is correct what the ESI Inspector told. For the purpose of coverage of an establishment or factory, the total number of persons working therein irrespective of their salary is taken into account which also includes employees engaged through a contractor or immediate employer even though that contractor or immediate employer is covered independently. This new provision came in to effect from 01-06-2010. Please follow the correct suggestion.
with regards
sanagapalli