ESIC Update: How Does the New Rule Affect Establishments with 10+ Employees?

Please find the attached new notification from ESIC. Now, ESIC will be applicable where 10 or more employees have worked for the mentioned establishment in the attached notification. For your information only.

Regards,
Faruk Shaikh
Asst. Manager - Human Resource
Lemon Tree Hotel, Ahmedabad
[Phone Number Removed For Privacy Reasons]
[Phone Number Removed For Privacy Reasons]

Apart from this amendment, there are various other amendments that have taken place in the ESIC Act. For example, the dependent's age is increased to 25 years. In addition to this, the Disablement Benefit would now cover benefits related to commuting to the place of work, using the employer's transport, etc. The act is readily available on esic.nic.in. I have also attached a copy of the act for your reference.

Regards,
Sulakshana

Hi Mr. Faruk, Apart from this amendment, there are various other amendments that have taken place in the ESIC Act. For example, the dependent's age is increased to 25 years of age. In addition, Disablement Benefit would now cover benefits related to commuting to the place of work, using the employer's transport, etc. The act is readily available on esic.nic.in. I have also attached a copy of the act for your reference.

Regards,
Sulakshana

Amendment of Rs. 10,000/- Financial Benefits

- Funeral Expenses: An amount of Rs. 10,000/- is payable to the dependents or to the person who performs last rites from day one of entering insurable employment.

K.K. Nair is also correct about 10 or more persons employed; ESIC is applicable for Gujarat state, as amended in Jan 2012.

Please inform if there is any new notification from ESIC for Delhi regarding the reduction of the limit from 20 to 10. Is ESIC applicable where 10 or more employees have worked for the mentioned establishment in Delhi? Please inform.

Best Regards,
CA. Dinesh Kumar

Thank you for your kind compliments. This notification is specifically for Gujarat State. You can access all updates related to benefits on the website www.esicgujarat.org.

Thank you.

Please inform the limit of employees for ESIC in Delhi.

Best Regards,
CA. Dinesh Kumar

Is this amendment applicable only in the State of Gujarat or all states?

Regards,
Sri Rao

Gujarat State ESIC Update

Only Gujarat State. Many states have already implemented this provision. In Gujarat, it was applicable to units employing 20 or more employees. Now, with this notification, the number has been reduced to 10. I am trying to obtain figures from ESIC on their estimates of the number of beneficiaries due to this change. Today, I spoke with some of them, and they mentioned that they have no information. However, one of them has promised to assist me with it.

If all the employees are drawing a salary higher than ₹18,000 in a company where 17 people are working, what should be done there?

No need to deduct any ESIC as per the Act. The limit is INR 15,000 for ESIC deduction. So, if the company wants to provide the benefit, then it's okay. But as per the law, there is no need; it is free from ESIC!

Regards,
Joy Macwan

If a worker earns Rs. 17,500 but his basic + HRA + conveyance is below Rs. 15,000, will his salary deduction for ESIC be up to Rs. 15,000 or not? Please help.

Thanks