ESI contribution rates - PFA draft of notification for proposed reduction in rates

Friends, PFA draft of notification for proposed reduction in rates of ESI contribution as under:
Employer's contribution : from 4¾% to 4%
Employee's contribution: from 1¾% to 1%
Final notification will be issued after getting comments from all concerned.
Thanks

Hi All,

We have a manufacturing unit in Navi Mumbai. I would like to know your opinion on the following scenario: If my contractor has applied for a labor license for 100 workers and has a copy of the application, along with a valid license expected to be granted by the authority, can he commence work with fewer than 100 workers from the date of the application? Are there any specific rules or provisions outlined in the Contract Labor Act regarding this situation?

Thank you for the circular.

Please, can you guide me on whether we should not deduct ESI from an employee working in a factory whose total salary, including overtime (OT), is more than 21,000/-? In the event of an accident, who is responsible for paying the medical allowance and damages, especially in the case of death?

Remember, ESIC deductions will reflect on the gross salary.

Can you please explain the same briefly? I would be highly obliged for the same.

I am attaching a sample from the salary sheet.

Follow this: "Overtime wages could not be treated as 'wages' for the purpose of contribution under the Hind Art Press v. ESI Corporation 1990 (1) LLJ 195."

Dear Subvimal,

Your attached file has incorrect calculations. You have calculated ESI on amounts above 21k, which is inaccurate. ESI is applicable only on gross salaries equal to or below 21000.

Regarding PF, PF deductions should be made only on Basic+DA. The limit for PF ceiling is 15000 (Basic + DA).

Thank you.