ESI Deduction - Esic [Thread 350801]

NKTiwari
A factory is located in a ESI implemented area. It has to send some employees to a area (for a permanent nature of job) where there is no ESI although the payroll is generated from the mother factory. Will deduction of ESI be mandatory for the employees sent for working in the non-ESI area??
regards
NKT
ramanuj.hardik
Dear N K Tiwari,
As per my understanding you may continue with the ESIC till sept and then you would need to take WC policy as they are going to work where the ESIC is not applicable Nevertheless please wait for some more replies from the seniors.
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Regards,
Hardik
Madhu.T.K
If the transfer is for at least seven months you may stop contributing. That means an employee who is working in a non implemented area of an establishment covered by ESI need not contribute provided his staying away from the ESI implemented area is for more than seven months in a year.
Whether he should continue to contribute till the contribution period ends is a matter to be checked because this provision applies to those who become out of coverage due to increase in their salary beyond the ceiling, ie, Rs 15000.Therefore, you may take an advise from the ESI Corporation itself.
Regards,
Madhu.T.K
shimpysingh
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