ESI Deductions on Construction Bills: Do We Need to Deduct 2.20%? Seeking Clarity from Experts

Hi Seniors, do we need to deduct ESI on building construction bills? If so, what is the percentage of deduction? I heard it will be 2.20% of the total bill value. Please clarify.

ESI Applicability for Construction Workers

ESI is not applicable to construction workers as per their own circular, which is sent herewith.

Regards,
jpratap

Thank you, Mr. Pratap, for sharing. We are all aware that the construction industry is exempt from ESI, but we did not receive the circular. Thanks for sharing and keep on sharing.

Dear Sir, I need your clarification on ESIC. I am currently working in a construction company, and my regular staff consists of 40 employees. Can I deduct the ESI or not?

Regards,
K. Prasad

You have to deduct ESI. If you contribute to ESIC, anything that happens to workers, such as accidents or injuries, will be taken care of by ESIC. This will save the company.

Thanks & Regards,
E. Ramesh
Sr. Personnel Officer
[Email Removed For Privacy Reasons]

ESIC Circular on Construction Workers

Recently, ESIC has issued a circular superseding its earlier circular, making ESIC applicable to construction workers. Scan copy attached.

Regards,
SC Verma

The thread is about the applicability of ESI on construction workers. Your response has diversified the topic. I request that members share their opinions on this subject from this source.

Thanks,

J. Pratap

I presume the query is on ESI deductions for civil constructions carried out by organizations through the employment of a civil contractor. In my opinion, ESI mandates a 25% deduction on the total value of the bill.

Regards,
M.V. Kannan

Dear Ramesh Garu, I am working in a construction company in Bangalore where I have 50 employees working as site workers. Can I deduct ESI for them or not? Please explain to me if ESI is required for site employees.

Dear Vermasc, please inform the members of this forum about the outcome of the circular dated 3.1.2011 from ESIC, which proposed conducting a survey concerning construction workers for the extension of ESI Schemes to them.

Wishes,
Jpratap