Propose The Firm To Avail ESI Facility Or Mediclaim?

Dear All,
We are a distributor firm and I have recently joined as the HR Manager. Please suggest whether I should propose the firm to avail ESI facility or Mediclaim?
Thanks
Devika Das

Dear Devika Das,
All the best for your new assignment. ESI is mandatory (social security act), and mediclaim is optional employee welfare. So ESI has to be compulsorily made and mediclaim rests with the management decision.

Dear Devika,
If the employees in your firm are more than 10 then ESIC becomes mandatory. Kindly get your firm registered with ESIC.
Mediclaim though is not mandatory. However you can initiate this in your firm. Explain the management the benefits of this and convince them.

As Ms. Arti Shah has rightly said that ESIC is mandatory if the employee strength is more than 10. If not it is not mandatory so one can opt the other option of Mediclaim.
Even though if you are registered under ESIC and any employee who are not covered under ESIC or is beyond the coverage can opt for Mediclaim

And
please note that for Rs. 15, 000.00 ESI is no applicable.
Kindly correct me if I am wrong.
Hrkapati

Dear Devika,
ESI is coming under Social Security Act which is mandatory for all Organisations having Manpower strength of at least 10 nos.
But, those are getting more then Rs.15,000/- Gross Salary per month are not coming under ESI facility

Another thing Devika.
If you are new and not aware about ESI, please contact the Local ESI Office to register your Organisation. You can not take ESI like Mediclem. The procedure is different.

Hi Devika, and all HR members,
I am sharing this just for your knowledge
In a bid to widen the social security safety net, the Labour Minister,Mr. Sis Ram Ola has announced that the people drawing a salary upto Rs. 25,000/-shall be covered under the ESI Scheme Currently, the benefit is available to people drawing a salary upto Rs.15,000/- only As per information available, the decision has been taken on Thursday, 19th September 2013 The move would impact the take home salary of the employees currently in the salary bracket of Rs. 15,000/- to Rs. 25,000/- Further, it would have an impact of increasing the ESI contribution as well as compliance for the employers
Regards
Raj
Sr. HR Professional

You can order for a copy of ESI Act and its procedures from the nearest branch of ESI Organisation and go though it.You will know the coverage and benefits to the employees under the scheme and then, decide for yourself after convincing your higher ups.
Besides,Mediclaim is also available as an option.You can discuss this with any of the nearby Insurance Companies and know what they offer.Then decide if the scheme suits your organisation.
You can go for both the schemes, or, either of the two.

Rs.15000 today, or Rs.25000 which is a likely ceiling ... this is Gross salary (without any deduction) or Net take home salary ??