Who is eligible for paid sick leave? Should we pay him?

Sick leave can be extended to employees, who are outside the purview of ESI Act. For those who are covered under ESI, they will get benefit from ESI.

I didn't say that sick leave is not for employees who are not under ESI only but if your Shops Act say that an employee is entitled to 12 days of sick leave that applies to employees covered under ESI also. For example, an employee falls sick while he is on a vacation and he could not get admitted in ESI hospital due to various reasons but undergoes treatment from a private hospital. Under this circumstance he can take sick leave though he is covered under ESI. If he submits sickness report from ESIC then it shall be marked as ESI leave for which we will not pay salary but the ESIC will pay it. If he does not submit the sickness report but submits a medical certificate from a different medical practitioner, then he shall be given sick leave.

Sir,
Then what is paid sick leave?
I thought paid sick leave means,employer gives salary to employee for sick period.

Paid sick leave? yes it should be paid one only. If sickness report is received from the ESIC, then the employer need not pay for it. It will be paid by the ESIC. If not, the employer should pay for the period of absence due to sick.

OK sir and how to calculate the pay.
Should I consider only basic salary despite gross salary.?

obviously, it should be on gross salary. On which salary would you pay for Casual Leave day? It should be on gross salary and not on basic salary alone.

General thumb rule for calculating leave salary is "salary will have to be calculated at rates what the employee would have drawn had he not gone on leave". In some circumstances there are certain different applicability. Say for e.g. 'Field allowance" or "Project Allowance" "Conveyance Allowance (when linked to actual kms travelled)" which is to be paid on actual days on duty/worked in the field/project site on 'pro-rata basis'. In such cases the incumbent will not be eligible when on leave. Therefore pay & allowances which are not linked to actual days of duty/work will have to be considered for payment of salary during leave period. These may include-Basic pay, DA, HRA, City allowance, Medical allowance, Special allowance, Uniform allowance etc.

Sir,
My company comes under ap shops and establishment act, and management agreed to give 12 paid CL, 7 paid SL- per annum and 7 Special casual leaves ( once in his entire service) and not agreed for privilege leaves.
Can we do this kind leave policy? Suggest me.

PL/EL is also applicable as per Shops & Establishments Act.

But my management is not willing to give privilege leaves sir.
what should i do now.