Understanding ESIC and Workmen Compensation: Coverage, Limits, and Compliance

Hello Everybody,

If contractual manpower is covered under workman's compensation, then is ESIC applicable? Please explain in brief. Yes or no, in both cases please explain. Please clear my doubts.

Will be thankful for your help.

These two acts are completely different from each other. The ESIC coverage limit is only 15000.

Satish

Yes, Mr. Satish, it is 15,000. If all workers are below 15,000 salaried and are covered by workman's compensation, should we also cover them in ESIC as well?

Hi,

Greetings for the day! If a factory 'OR' an establishment exists in ESIC-notified area, then, as per rules, ESIC is applicable to those contractual manpower who fall within the ESIC ceiling. Remaining contractual manpower will be covered under workman compensation.

For reference, you may read Section 53 of the ESI Act, 1948.

Workmen compensation and ESI are two different Acts. If in your establishment there are more than 10 employees with less than 15000 of salary, then you have to mandatory register under the ESI Act. As per the Workmen's Compensation Act, if the worker gets injured during the course of employment, then the employer has to compensate for the loss caused by the worker. If your establishment is covered under ESI, then that expense will be covered by the ESI, and you need not worry. If ESI is not covered, then you have to insure your workers separately. If you did not insure your employees, then you have to pay the loss caused to your worker from your pocket.

If your company is covered by ESIC, then you need not take workmen compensation because up to 15000/- salary all are covered with ESIC. The rest you can opt for a medi-claim policy, which will cover your ailment and accidental treatment cases. ESIC will only be applicable if your employee strength is more than 10 persons.

As far as coverage under EC Act (earlier WC act) is concerned, there is no salary limit. The only condition is that the person injured shall be an employee as per the definition. The injury should be an employment injury.

Varghese Mathew
BIL, PGDPM
LABOUR LAW ADVISER
TVPM
9961266966

Hi,

ESIC specifies the coverage limits for establishments based on their facilities being extended easily. The coverage areas are under zones, namely Zone 1, Zone 2, and Zone 3. Zone 1 and 2 are the areas coming under Municipal Corp, while Zone 2 comprises Nagar Parishad and Cantonment areas. Zone 3 is the area outside the limits of Zone 1 and Zone 2.

Consequently, as per the ESIC Act, it is mandatory for establishments to register under ESIC if they fall in Zone 1 or Zone 2. For the rest of the areas, ESIC does not impose its mandate. However, as per governing labor law and for the welfare and protection of employees, employees need to be insured under the EC Act. The ESIC Act has limits for insurance coverage for employees based on salary, which is below 15,000 per month. Similarly, the EC Act specifies minimum limits but not the maximum limit for insurance coverage as premium and has also defined the benefits under the Act.

Also, please note that not only contractual employees are required to be brought under this coverage, but all employees who are eligible and fall under the terms of these two Acts.

Thanks,

Bijay

Hello everybody,

Can anyone help me with ESIC?

My question is, one employee's gross salary in August was Rs. 13,000, and then in September, it increased to Rs. 16,000. Will his ESIC contribution be deducted for the next six months?

Please reply....

If the salary is increased to 16,000 in September, ESI is deductible until September as CP ends by September.

Varghese Mathew
BIL, PGDPM
Labor/HR Advisor
Thiruvananthapuram
9961266966

ESI and Workmen's Compensation both are not applicable at a time. If ESI zone is there, then you have to give ESI facilities; otherwise, the Workmen's Compensation Act will apply.

Hi,

The ESIC is on Gross. Please don't mind; it would be better if we use this word as there are many young geeks going through these discussions.

Chills,
Karthik

Workmen compensation and ESI are two different Acts. If in your establishment there are more than 10 employees and among them anyone is getting a salary less than 15000, then you have to mandatorily register under the ESI Act.

As per the Workmen's Compensation Act, if a worker gets injured during the course of employment, the employer has to compensate for the loss caused by the worker. If your establishment is covered under ESI, then that expense will be covered by the ESI, and you need not worry.

If ESI does not cover you, then you have to insure your workers separately. If you did not insure your employees, then you have to pay for the loss caused to your worker from your pocket. Both acts cannot be applicable at the same time in the same organization.

Hello everyone,

Thank you for the valuable information. I want to know, is it necessary to be covered under ESIC in the construction industry? This is because laborers come and go every day, and not only that, the place of work can also change in various types of construction like rework and transmission lines, etc.

I think the BOCW Act may be referred to for more information on this. Recently, construction workers have also been brought under ESIC.