Understanding ESI: Do Both Spouses Need to Contribute Separately?

Hi Friends,

I am a new member who just joined this forum. I have a few questions related to ESI.

1. Is it mandatory for every employee whose gross wages are Rs.10,000.00 and below to be a contributory member of the ESI?

2. An employee (female) working in a company where ESI is in force, is paying for ESI deductions, gets married after a year or so. Her husband is also contributing for ESI. Is it possible for the wife to get her ESI membership cancelled citing the reason that her husband is already a member, hence why should she contribute?

Expert opinion would be invaluable from viewers having experience in this field.

Regards,
Debashis

Hi Debashis,

According to me, for your first point, the answer is yes, and for the second, it is no. Others can correct me if I am wrong here.

Regards,
Amith R.

Dear Debhasis,

Greetings!

Yes, for both questions. Even though her dependent is contributing to ESI, she is supposed to be covered under ESI, but availing benefits depends upon her wish.

Regards,
John N

Dear Debashish,

Every employee whose wage is equal to or less than Rs. 10,000 per month is to be covered under the ESI Act. In the second case, we can't take exemption on the grounds that a particular woman is covered under the ESI Act through the contribution of her husband.

The objects and reasons of the ESI Act, 1948, are to provide certain benefits to employees in cases of sickness, maternity, employment injury, and certain other matters in relation thereto. As per your mentioned case, a woman employee can't avail benefits such as leave during sickness, maternity leave benefits, and wages during these leaves. An accident during the course of employment is also a part of the benefits, which helps to secure the employer in case of compensation as the employee is covered under insurance.

Therefore, every employee, whether or not their spouse is contributing to the ESI, shall be covered under the ESI.

Regards,
Anuj

Hi Debashish,

The answer is "Yes" for both.

The ESIC Act does not have any provisions for family members' contributions. It only addresses the employees' contributions who are working in the establishment. Even if both the husband and wife work in the same establishment, the contribution has to be remitted to the ESIC if their salary is less than Rs. 10,000.

S. David Naidu
Sr. Manager HR
Le Royal Meridien, Mumbai

Hi Debashish,

I also agree with Mr. S. David Naidu. It is clear that ESIC is not a general insurance company. The ESIC Act does not have any provisions for family members' contribution. It only pertains to the employees' contributions who are working in the establishment. Even if both the husband and wife work in the same establishment, the contribution has to be remitted to the ESIC if their salary is less than Rs. 10,000 per month.

S. David Naidu
Sr. Manager HR
Le Royal Meridien, Mumbai

Hi,

The answer to the first question is YES, and for the second question, NO. The reason for NO is that every employer who is eligible for the definition of an employee must contribute to the ESIC. Most of you will be saying YES to the second question, keeping in mind the benefits of the employees' dependents.

This lady and her husband will both receive cash benefits for themselves. In case they have a child, one of them will show the child as a dependent, but both of them will contribute towards the ESIC. The ESIC offers cash benefits in case of death, disabilities, etc., making contribution against the same mandatory for the employee.

Warm regards,
Umesh Chaudhary
umesh.chaudhary@ril.com

Sorry, I forgot to mention that before answering this question, I consulted with a friend of mine who is an inspector in ESIC.

Warm regards,

Good afternoon,

Employee lady and her husband will both receive cash benefits for themselves. In the case of having a child, one of them will show the child as a dependent, but both will contribute towards ESIC. The child will only receive medical benefits, not sickness and other benefits. There is no provision for paying extra contributions under the act.

Lalit Kumar Gupta

Debashish,

There was a typing error in my reply to you.

Your First Question: Ans. is Yes
2nd Question: Ans. is No.

Hello friends,

The first answer is obviously yes. For the second answer, the duty is cast upon the employer to deduct the ESI contribution and remit it to the department, and no employer would like to unnecessarily get dragged into any potential violation.

Regards

Hi Debashish,

I also agree with Mr. S. David Naidu. It is clear that ESIC is not a general insurance company. The ESIC Act does not have any provisions for family members' contributions. It only discusses the employees' contributions who are working in the establishment. Even if both the husband and wife work in the same establishment, the contribution has to be remitted to the ESIC if their salary is less than Rs. 10,000 per month.

S. David Naidu
Sr. Manager HR
Le Royal Meridien, Mumbai

Dear Debashish,

Due to a typing mistake in the last message, I could not mention my name - Lalit Kumar Gupta instead of S. David Naidu. Please correct this.

Thanks,
Lalit Kumar Gupta