How Will the New ESIC Implementation Affect Workers in Sonitpur and Kamrup, Assam?

Dear All,

Please be informed that the Ministry of Labour & Employment, Government of India, as per notification No. N-16/4/Assam/2016-P&D dated 08.12.2016, the Employees State Insurance Act, 1948 (34 of 1948), shall come into force in the following areas in the State of Assam, namely: SONITPUR, KAMRUP Rural.

Regards

Dear All,

Please be informed that the circular No. I-11/15/10/2016-ICT dated 15th December '16 "Reduce rate of Contribution under amended Rule 51B of ESI (Central) rules, 1950." As per the notification, ESIC contribution has been reduced to 1% and 3% for the newly implemented areas.

Can anyone please confirm what is the minimum number of employees required in Assam to start ESIC for an NGO?

Regards,
Pratishtha Sawhney

The date of effect of the reduced rate of contribution would be either 01.08.2016, i.e., from the date on which the new areas have been notified or from the date of registration of the establishment, whichever is later. Please confirm whether my presumption is correct.

Venu, GOI

Dear All,

Applicability of the Act

Under Section 2(12) of the Act, it is applicable to non-seasonal factories employing 10 or more persons.

Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings, and newspaper establishments employing 20* or more persons.

Furthermore, under Section 1(5) of the Act, the Scheme has been extended to private medical and educational institutions employing 20* or more persons in certain States/UTs.

*Note: 14 State Governments/UTs have reduced the threshold limit for coverage of shops and other establishments from 20 to 10 or more persons. The remaining State Governments/UTs are in the process of reducing the same.

The existing wage limit for coverage under the Act is Rs. 15,000/- per month (w.e.f. 01/05/2010).

"The date of effect of the reduced rate of contribution would be either 01.08.2016." Yes, my advice is, please go and check with the local authority.

Regards