Hi,
Apex Management,
I believe, my views were not clear. You are correct that current that current 'salary' ceiling for ESI mandate is INR 15000 because you have used the word 'SALARY'. I believe you have not noticed I have used the term 'Basic +DA' & not ' SALARY'..
FYI, wage under Sec2 (22) of ESI ACT,1948 means all remuneration paid or payable, in cash to an employee, if the term of contract of employment , express or implied, were fulfilled. It also includes any payment made by employer in regards to during lock out strike which is not illegal or layoff or period of authorized leave and other additional remuneration, if any , paid at the interval not exceeding two months.............
Then my friend, does salary means only 'Basic+ DA'? No right, then am I fool to write all scrap in the thread..... People fail to understand the meaning what I wish to imply because in India we follow 'Mug Up Policy of knowledge'...That's why in India still there is a policy, if you are not getting a job by your skills, use bribe or short cuts or reference of someone influential or only via B school compassing...... Do hell with such students, Such HR's & do hell with such colleges / B schools( corporate houses- only for profit) or HR's. Funny right....but this is true, without any disrespect or hard feelings, I just wish to say this is practical picture of Market.
I have used concept of 'Basic + DA' instead of using the word 'remuneration/salary /wage' for comparing ESI with Mediclaim keeping in mind laws of taxation..........Please don't expect that I will teach interpretation of statues, deeds & documents, along with Taxation details, Cash flow statement readings....bla....bla....bla If people here don't understand the difference between penalty & fine here, then you tell me how can I continue this discussion forward, so that all can understand?
My friend, as per ESI ACT,1948 -The coverage of this act is at present restricted to employees drawing wages not exceeding INR 15000 per month. Please refer bare act with rules, if required. NO WHERE IS WRITTEN THAT BASIC + DA SHOULD BE UP TO INR 15000 or WAGE/REMUNERATION/SALARY MEANS ONLY - BASIC + DA.
Now question to you is can there be any punishment if any company don't provide ESI coverage to employees whose remuneration /wage/ salary/ commission is above INR 15000 or provide better facilities using different option with equivalent features, if yes then who is the adjudicating authority?
I have never seen any such types of rules, nor ACT specifying details or CASE LAWS........If you have any such information please share, with details, I would love to learn.
Employer(s) liabilities are limited to provide ESI Coverage to only those employees whose salary, remuneration, wage is <= 15000, iff employer is liable to follow ESI ACT,1948 under the prescribed criteria of the ACT.
FYI, if someone's BASIC + DA is >15000 then generally in a software company that's too in Vishakhapatnam remuneration would be around 30,000 - 50,000 per month- MINIMUM. That is around 3.6-6 lakhs per annum- MINIMUM, now do you understood why I used concept of TAX, and why its important to compare Mediclaim. HOW STATUARY COMPLIENCE ARE MEETING?
FYI, many Trade Union are asking CG to introduce concept of ' BASIC + DA' in the ACT, instead of work 'Wage' reason being in Mumbai, Chennai , Kerala remuneration standard is quite high, so is cost of living, thus more employee will be covered.
Please don't hesitate to ask question, we can have a long discussion..........on labor laws, Income tax act, 1961, etc.....But please don't advise anyone to mug up without understanding.
Thanks & Regards
Sovik B
MBA, Perusing CA/CS
B.Sc- Mathematics Hons
Under Universtity of Calcutta.