Navigating ESI and Private Insurance for Employees Earning Above 15,000: What Should Employers Do?

Understanding ESI Benefits and Contributions

I am a manager of a simple organization. Kindly explain the ESI benefits and contributions for employees who earn a basic salary above 15,000 from the employee's side.

Employee Earnings Above 15,000

Kindly explain the situation to the employer when an employee earns above 15,000. Should the employee continue with ESIC or opt for other private insurance benefits?

Private Insurance Plan Scenario

In the scenario where an employee joins a private insurance plan, how can I fill the contribution column in the ESI monthly contribution list, and how can I manage the payroll in accounting?

Regards

Understanding ESI Applicability

The ESI Act is applicable if the gross salary of an employee is less than Rs. 15,000. It is mandatory to cover the employee under ESIS if your establishment is covered or coverable under ESIS. If the gross salary is above Rs. 15,000, ESI is not applicable, and the employee should not be covered under ESIS.

If the gross salary of any employee exceeds Rs. 15,000 during the contribution period, they should continue to be covered under ESIS until the contribution period ends. There is no substitute for covering an employee under ESIS when applicable.

I hope you understand the information provided and can infer the answer to your query. If not, please consider hiring a professional service like mine.

Thank you.

Apart from what Mr. Korgaonkar has mentioned, you can cover the employees in Mediclaim and Accident Policies if your employer wishes to. But it is not mandatory.