Navigating ESIC: Where Is It Applicable and What Rules Should HR Know?

Understanding ESIC Applicability and Regulations

I'm new to the field of HR generalist, and I would like to know where the ESIC is applicable and where it is not, as well as the rules and regulations followed in relation to ESIC.

Warm regards

Mr. Naik correctly suggested the applicability for getting ESIC benefits, and I would like to add more on it. If there is no ESIC hospital in a district, ESIC is not applicable to the employer for that location where the work is in progress. At that time, each and every employee should be covered by medical insurance or group insurance. Also, if there is a hospital for employees maintained by the employer, ESIC is not applicable. This applies to industries like Railway, Mining, AAI, and many more.

ENJOY...

The wage ceiling for ESI is INR 15,000, with 1.75% as the employee share and 4.75% as the employer share.

Thank you.

Hi friends, in our organization, the ESIC contribution of both parties (the employer and the employee) is paid by the employee. Is that legal? Kindly advise because I am not aware of it.

Regards

Latest Amendment in ESIC Act

As per the latest amendment in the ESIC Act:
- It covers every employee who is drawing a gross salary of Rs. 15,000 per month. To derive the gross salary, components to be considered are Basic, HRA, and all other applicable allowances except Washing Allowance.
- ESIC is calculated at 1.75% from the employee and at 4.75% from the employer.
- Annually, local ESIC authorities issue notifications on exempted and non-exempted areas. One has to check in which category their area falls.

Hope the applicability is more or less clear.

Thanks,
Manoj

Hello, HR practitioners! Just adding my few cents' worth on this post. Any organization with more than 10 employees drawing a gross salary of less than 15,000/- pm must register under the ESI Act.

For Branch Offices:
Separate registration is a must if the branch is outside the city or in a different state. If the branch office is within the city, then separate registration is not required. However, the ESI contributions, i.e., 1.75% & 4.75% of all employees, should be paid at the Head office itself.

Best Wishes,
Deepak

Just adding my two cents on this post.

Any organization with more than 10 employees drawing a gross salary of less than ₹15,000 per month has to register under the ESI Act.

For Branch Offices:
Separate registration is a requirement if the branch is located outside the city or state. If the branch office is within the city, then separate registration is not necessary. However, the ESI contributions, i.e., 1.75% for employees and 4.75% for employers, should be paid at the head office.

Regards,
Ritesh

ESIC Applicability to Industry

1. Industry in Nagar Nigam Boundary or in an Industrial Estate notified by the government.

Regards

Thank you all for this useful information. Actually, somebody asked me if educational institutions (schools, etc.) and nursing homes are also covered under the ESIC Act. Is this true? Is there any notification from the ESIC office?

Thank you for your reply. Could you please tell me if ESIC is applicable to educational institutions and nursing homes or not?

Hi, I would like to confirm whether the ESIC limit has been increased from Rs. 15,000 to Rs. 21,000. Moreover, could you please explain how it is calculated?