ESI - Esic [Thread 3059]

FOR ELIGIBILITY OF ESI IN THE ORGANISATION NO. OF EMPLOYEES SHOULD BE 20. PLEASE HELP TO CLARIFY, THAT IF ORGANISATION HAS OFFICES IN DIFFERENT STATES THEN NO. OF EMPLOYEES WILL BE TOTAL IN ORGANISATION OR 20 IN ONE STATE.
THANKS

Hi,
I want to know about the following query:
Suppose if any employee submits his investment details at the start of the financial year. Now, at this time he does not have any investments as such, but suppose he makes investments in say insurence, securities etc. after 3 months, how will his TDS should be processed?
Also want to know if the submitted statement of income can be changed in between the financial year any time?
Kindly assist me know about the above query.
Regards
Mandar Pande
Mumbai

dear manisha,
As you are aware the purpose of ESI is to give benefits to the employees in case of sickness and other medical problems through Dispensory and Hospitals.
So the eligibility( no.of employees) of ESI will be as per the office location and no.of employees in different locations .
bharat kumar

Dear Mr.Maunder Pandy,
In general practice employee submits his investment plan in the beginning of the financial year but he can change his plan in between the financial year and TADS will be calculated and deducted on proportionate basis.
bharat kumar

Hi Manisha,
saw your mail. The first part of your query is correct and the second part has already been answered by bharat kumar. Please note that an employee to fall in the purview of the ESI should be coming in the salary bracket of Rs.7500/- pm (basic + allowances) above this the employee will not come under ESI .
Hope this is clear!!
Regards,
Sadashiv Rao 8)

Dear Manisha

This is reference to your query on applicability of ESI on an organisation.

It is true that the Employees State Insurance Act,1948 and scheme framed there under , for its applicability employment strength should be of more than 20 if manufacturing process /work is performed without the help of power and if manufacturing process is being carried out with the help of power then the required employment strength for coverage under ESI act is of 10 employees.

Under the act , establishment includes all its branches whether these are within the state or out side the state.

Reason to this is that this act is central act and not a state subject.

For arriving at figure of 20 employees , employees employed / engaged at all the branches will be clubbed together for the applicability and coverage under the act.

For the purposes of contribution , only the employees whose monthly salary (excluding overtime payment) is of less than of Rs.7500.00 are eligible under the scheme.

Rate of contribution by employee is 1.75% of salary and 4.75% of salary by employer.

Scheme is applicable only on the notified area. If your organisation / branch falls under the notified area and then this scheme is applicale and contributions are required to be deposited with Account Regional Director ESI.

In case any of your branch fall under the area in which scheme has not been notified / implemented you do not have to deduct and deposit the contribution in respect of those employees but have to maintain and produce records before the inspecting authority for compliance under the act.

Regards

Anil Anand