Will an employee, who has crossed his salary ceiling for ESI, continue to remain covered under ESI Act he will be eligible for ESI benifit or not. satish
From India, Chandigarh
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From India, Chandigarh
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Dear Satish,
Your question is regarding an existing ESIC member who has crossed the ESIC ceiling limit of coverage. Will they remain covered or not? Furthermore, will they be able to avail benefits or not?
Workers covered under the ESI Act are required to pay contributions towards the scheme on a monthly basis. A contribution period refers to a six-month timespan from 1st April to 30th September and 1st October to 31st March. Therefore, in a financial year, there are two contribution periods, each lasting six months.
Cash benefits under the scheme are generally linked to the contributions paid. The benefit period begins three months after the closure of a contribution period.
If a worker exits the ESIC bracket on 26th May 2010, and one month's contribution has already been made to ESIC, in this case, we have to pay their contribution until the end of the six-month contribution period (1st April 2010 to 30th September 2010), and the worker will be able to avail the benefits for this contribution period.
I hope I have addressed your query.
Regards,
Mohan
From India, Mumbai
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6Your question is regarding an existing ESIC member who has crossed the ESIC ceiling limit of coverage. Will they remain covered or not? Furthermore, will they be able to avail benefits or not?
Workers covered under the ESI Act are required to pay contributions towards the scheme on a monthly basis. A contribution period refers to a six-month timespan from 1st April to 30th September and 1st October to 31st March. Therefore, in a financial year, there are two contribution periods, each lasting six months.
Cash benefits under the scheme are generally linked to the contributions paid. The benefit period begins three months after the closure of a contribution period.
If a worker exits the ESIC bracket on 26th May 2010, and one month's contribution has already been made to ESIC, in this case, we have to pay their contribution until the end of the six-month contribution period (1st April 2010 to 30th September 2010), and the worker will be able to avail the benefits for this contribution period.
I hope I have addressed your query.
Regards,
Mohan
From India, Mumbai
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To the group members,
Do we have any alternative for coverage of ESI? If an employer is ready to provide an equivalent or better service than ESI to employees, does he have to go through ESI only? I know it may sound a bit weird, but I need a justification as to why we can't provide better benefits to our employees at a comparatively lower rate than what we pay for ESI. If anyone can solve my query, I will be highly thankful to him/her.
Kindly send me your replies to
.....
From India, Hyderabad
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Do we have any alternative for coverage of ESI? If an employer is ready to provide an equivalent or better service than ESI to employees, does he have to go through ESI only? I know it may sound a bit weird, but I need a justification as to why we can't provide better benefits to our employees at a comparatively lower rate than what we pay for ESI. If anyone can solve my query, I will be highly thankful to him/her.
Kindly send me your replies to
From India, Hyderabad
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Dear Prabhar,
It is very difficult for any company to provide the benefits offered by ESI. In fact, the ESI Act includes provisions for exemption from the ESI Act in the following cases:
i) Exemption for a certain class of factories/establishments,
ii) Exemption for a certain class of employees, and
iii) Exemption for certain provisions of the ESI.
The first point that the ESI Exemption committee will consider is whether the employer is providing benefits equal to or superior to those of ESI. However, no company will provide benefits equal to or greater than ESI. Only public sector companies provide benefits equal to or superior to ESI for regular employees. Some of the main benefits provided by ESI include:
i) Sickness Benefit: An insured person is entitled to 91 days of leave in one year with approximately 60% of their wages, in addition to medical/hospital benefits.
ii) Enhanced Sickness Benefit: In the case of family planning procedures like Tubectomy/vasectomy, the insured person/women are entitled to a cash benefit equal to or more than their wages, in addition to medical/hospital facilities.
iii) Extended Sickness Benefit: In the case of certain long-term diseases like TB/Heart diseases, the medical benefits will be extended to 3 years regardless of employment status, and cash benefits will be extended up to 2 years if the insured person has 2 years of insurable employment.
iv) Disablement Benefit: In the event of an injury/accident at the workplace or on the way to/from work, the insured person is entitled to temporary disablement benefit, which is nearly 80% of their wages without a limit on the duration. If there is a permanent loss of earning capacity due to an injury, such as the loss of a body part, the insured person will receive a lifelong pension based on medical board recommendations, irrespective of their continued employment status. In case of death due to a work-related injury, the pension will be paid to dependants, such as the wife until remarriage, children up to 21 years, or widowed mother.
v) Maternity Benefit: An Insured Woman who completes 9 months of service under ESI coverage and works for wages for 70 days in the relevant contribution period will receive 84 days of maternity benefit at a rate higher than her wages, along with medical/hospital facilities.
Apart from these benefits, insured persons/women are entitled to funeral expenses, super-specialty treatment, and unemployment allowances in cases of job loss due to retrenchment, subject to certain terms and conditions.
ESI is establishing many medical/nursing institutions nationwide, making it possible for employees to fulfill their dream of seeing their children become doctors. ESI provides a percentage of reservation for the children of insured persons, a benefit that seemed unimaginable before.
Due to the multitude of benefits provided by ESI, it is challenging for companies to afford them, making it highly difficult to obtain exemptions.
I hope I have clarified any doubts among our HR friends regarding ESI. If you have any queries or doubts, please do not hesitate to call me at 09443434313 or write to vsyamprasad@yahoo.com.
From India, Hyderabad
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It is very difficult for any company to provide the benefits offered by ESI. In fact, the ESI Act includes provisions for exemption from the ESI Act in the following cases:
i) Exemption for a certain class of factories/establishments,
ii) Exemption for a certain class of employees, and
iii) Exemption for certain provisions of the ESI.
The first point that the ESI Exemption committee will consider is whether the employer is providing benefits equal to or superior to those of ESI. However, no company will provide benefits equal to or greater than ESI. Only public sector companies provide benefits equal to or superior to ESI for regular employees. Some of the main benefits provided by ESI include:
i) Sickness Benefit: An insured person is entitled to 91 days of leave in one year with approximately 60% of their wages, in addition to medical/hospital benefits.
ii) Enhanced Sickness Benefit: In the case of family planning procedures like Tubectomy/vasectomy, the insured person/women are entitled to a cash benefit equal to or more than their wages, in addition to medical/hospital facilities.
iii) Extended Sickness Benefit: In the case of certain long-term diseases like TB/Heart diseases, the medical benefits will be extended to 3 years regardless of employment status, and cash benefits will be extended up to 2 years if the insured person has 2 years of insurable employment.
iv) Disablement Benefit: In the event of an injury/accident at the workplace or on the way to/from work, the insured person is entitled to temporary disablement benefit, which is nearly 80% of their wages without a limit on the duration. If there is a permanent loss of earning capacity due to an injury, such as the loss of a body part, the insured person will receive a lifelong pension based on medical board recommendations, irrespective of their continued employment status. In case of death due to a work-related injury, the pension will be paid to dependants, such as the wife until remarriage, children up to 21 years, or widowed mother.
v) Maternity Benefit: An Insured Woman who completes 9 months of service under ESI coverage and works for wages for 70 days in the relevant contribution period will receive 84 days of maternity benefit at a rate higher than her wages, along with medical/hospital facilities.
Apart from these benefits, insured persons/women are entitled to funeral expenses, super-specialty treatment, and unemployment allowances in cases of job loss due to retrenchment, subject to certain terms and conditions.
ESI is establishing many medical/nursing institutions nationwide, making it possible for employees to fulfill their dream of seeing their children become doctors. ESI provides a percentage of reservation for the children of insured persons, a benefit that seemed unimaginable before.
Due to the multitude of benefits provided by ESI, it is challenging for companies to afford them, making it highly difficult to obtain exemptions.
I hope I have clarified any doubts among our HR friends regarding ESI. If you have any queries or doubts, please do not hesitate to call me at 09443434313 or write to vsyamprasad@yahoo.com.
From India, Hyderabad
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Sir,
Thank you very much for sorting out my query. It was very kind of you to explain to us youngsters about the details of the ESI Act. I have already saved your number and will definitely give you a call soon. I am based out of Hyderabad and work at JK Agrigenetics Ltd. (JK Organization).
Once again, thank you very much, sir.
Regards,
Prakhar
From India, Hyderabad
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Thank you very much for sorting out my query. It was very kind of you to explain to us youngsters about the details of the ESI Act. I have already saved your number and will definitely give you a call soon. I am based out of Hyderabad and work at JK Agrigenetics Ltd. (JK Organization).
Once again, thank you very much, sir.
Regards,
Prakhar
From India, Hyderabad
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Hi Prasad Ji,
ESI has increased the ESI Deduction Slab from Rs. 10,000/- to Rs. 15,000/- and my monthly gross salary is Rs. 15,260/-. Am I eligible to receive ESI services? I contacted my Finance Department, and they informed me that I am not eligible for this facility.
My question is, are there any provisions or ways for me to avail of this facility? While it is not feasible for me to reduce my salary to qualify for the ESI facility, please suggest if there is any alternative method for me to access ESI benefits. Your prompt response is appreciated.
Thank you,
Prakash Singh
From India, New Delhi
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ESI has increased the ESI Deduction Slab from Rs. 10,000/- to Rs. 15,000/- and my monthly gross salary is Rs. 15,260/-. Am I eligible to receive ESI services? I contacted my Finance Department, and they informed me that I am not eligible for this facility.
My question is, are there any provisions or ways for me to avail of this facility? While it is not feasible for me to reduce my salary to qualify for the ESI facility, please suggest if there is any alternative method for me to access ESI benefits. Your prompt response is appreciated.
Thank you,
Prakash Singh
From India, New Delhi
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As per the above discussion, if employees opt out of the ESI Scheme during the contribution period, the employer is liable to pay the remaining employee contribution or deduct it from the employee's salary for the remaining contribution period of six months. Please clarify.
From India, Bareli
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From India, Bareli
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Any contribution to be paid towards ESI, whether the employee earns less than or more than ₹15,000, is to be deducted from the salary of the employee. The employee's share of the contribution (1.75%) is always to be deducted from the salary of the employee. In case an employee leaves the company while he/she has yet to pay towards ESI for the next few months to complete the payment through the contribution period (1st April to 30th September or 1st October to 31st March), the company is not liable to keep paying through the contribution if the employee has left the organization.
Hope it is clear.
Regards
From India, Pune
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Hope it is clear.
Regards
From India, Pune
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Warm greetings!!!!
My question is:
ESI Employee's share of contribution (1.75%) is always to be deducted from the Gross salary of the employee when he is getting 15000/- per month. But if he is getting 20000/- per month as gross, then what is the deduction? According to ESI CEILING RATES, what is the deduction that the employee gets at 20000/- as a gross salary? Whether we have to deduct according to the 15000/- ceiling rate or the 20000/- ceiling rate.
From India, Kakinada
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My question is:
ESI Employee's share of contribution (1.75%) is always to be deducted from the Gross salary of the employee when he is getting 15000/- per month. But if he is getting 20000/- per month as gross, then what is the deduction? According to ESI CEILING RATES, what is the deduction that the employee gets at 20000/- as a gross salary? Whether we have to deduct according to the 15000/- ceiling rate or the 20000/- ceiling rate.
From India, Kakinada
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An employee is working with us, and he is an ESI member. By virtue of being a member of ESI, his family members are covered. Now, recently, his spouse has joined our organization. Should she be enrolled again as an ESI member? I would appreciate it if anybody could respond to the above query.
From India, Secunderabad
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From India, Secunderabad
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Dear members,
Spousal relationships are often confined to the four walls of the home. However, when individuals enter the workplace, they are simply employees of the company. It is crucial to treat each employee equally, regardless of their personal relationships.
Under the ESI Act, maternity benefits are provided to female employees only, not to their husbands. It is important to understand and implement this policy consistently.
I hope this clarifies the importance of treating all employees fairly and adhering to company policies.
Best of luck,
Warm regards,
SYAM
From India, Hyderabad
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Spousal relationships are often confined to the four walls of the home. However, when individuals enter the workplace, they are simply employees of the company. It is crucial to treat each employee equally, regardless of their personal relationships.
Under the ESI Act, maternity benefits are provided to female employees only, not to their husbands. It is important to understand and implement this policy consistently.
I hope this clarifies the importance of treating all employees fairly and adhering to company policies.
Best of luck,
Warm regards,
SYAM
From India, Hyderabad
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Enhancement of Maternity Benefits under the ESI Act,1948.pdf
BENEFITS UNDER ESI.ppt