Is There a Clause in the WC Act Excluding Employees Earning Under 8000 Rs? Seeking Clarity

Recently, I applied for the renewal of the WC policy for my unit. My consultant informed me that we do not have to take a WC policy for all employees; we can exclude employees with a gross salary of less than 8000 Rs per month.

For better understanding, we do not have a general mediclaim policy at the site for all employees, and we are not covered under ESIC. I have searched extensively for such a clause in the WC Act but could not find anything like this anywhere. In my 5-year career, it is the first time someone has mentioned such a clause in the WC Act. Please let me know if there is any such clause in the WC Act. My site is located in Gujarat and in an SEZ.

Regards.

Though you don't have any Mediclaim, and ESIC is not applicable, you have to take the WC policy for all the workers, even though calculations will be different for wages above 7,000.

Calculation Details

Below is the calculation:

- Up to 48,000 Gross Per Annum, WC = 118 PA.
- If Gross > 48,000 PA, then WC = ((actual gross - 48,000) * 0.12%) + 118 PA.

In your case, Gross PA is 84,000 per employee, so WC will be calculated accordingly.

To support the argument, I am attaching a quotation from an insurance company for the Workers' Compensation Policy. FYI: Salaries/Wages above 8,000 per month are in red font in it.

Regards,