ESI Applicabilty - Esi Consultant

Dear All,
Kindly let me know whether ESI is applicable on Professional Fees, Consultancy Fees & other fees paid based on the legal agreements made between Individual & Company.
Thanks & Regards,
Manjunath.

They are coming as contract employees. We have to deduct ESI when the contract amount is not more than Rs.150001/- per month

Hi Manjunath,
If you talking about ESI = Employees State insurance. Then its applicable only on Employees of the organization whose comes under the ESIC area of the city. Also it is not an one time paid charges.
Regards,
Ashi

Hi,
Will you pls. guide me... How to start conversation/Thread. I have so much to share with you all.......

Hi manjunath,
ESI applicability is irrespective of the Ltd or Pvt companies. Its depend upon the salary of the employees. If the salary of employee is in between 6500 pm to 15000 pm then ESI will be deducted.
And the contribution are --
Employee - 1.74%
Employer's - 4.75%
Regards,
Ashi

there is not any such difference between pvt.ltd & ltd. company for applicability of ESI.

employee state insurence,it is applicble for who earning below 15000/ not more then 15k,it is apllicable ip dependent persons also

Dear all,

I request you to all to reply only if you know the act completely, any ambigous statements can cause legal and fininacial troubles to the co. and individuals.

for any basic query like this always search first then ask!!!!!! advice to all freshers.

Query:

first you should know that whether this act is applicable to your industry/business or not?

if yes, then you must register with the deptt then only you can deduct the amount in the ratio (1.75%--employee and 4.75%-- employer on earned gross wages incl. OT and on monthly basis)

there are also lot of records to be maintained under this act, i suggest you to take expert guidance before taking responsibility as this can lead to various serious obligations to the emloyer if properly not followed.

ESI applicability to employees whose Gross wages <=15,000/-,

ESI act once applicable to employer will remain entact forever.

can be applicable to any co. irrespective of their legal bindings such as firm, partnership, pvt ltd or ltd.

it is very usefull act and i suggest you to all ; try to cover your industry under this act.

regards

Manish

Admin & HR mgr

Esi is paid on salary. So it will not apply to consulting fees.
However, for pay,net to contractors for contract labour, you need to ensure that esi is paid by him, or you need to deduct and pay nit on his behalf

Dear All
As Mr Manish suggested, all HR executives, please look into the ESI Act. Someone (recruitme22) asks the very basic question what is ESI stand for ?? I want to know his name (as name not indicated in the posting) and is he a HR person?? If so, this question cannot arise in him !!!
- All HR executives/Freshers - please go through the ESI Act book to know the basics. Any administrative clarifications, new developments, etc., can be brought out on this forum.
- If someone asks the basic questions like what is ESI, what is the contribution payable to ESI, what is the eligible salary for ESI coverage, etc., it is a disgrace to the HR community !!!
- Mr Manjunath - your question is fine - please note, ESI is not applicable for professional fees, consultancy fees. But any other fees, you have to specifically mention and then only it can be clarified. Also note, any work that is carried on within the factory/office premises attracts ESI contribution.
Regards
K.Ramachandra
Bangalore