Hi everyone ,
Following are our doubts regarding ESI scheme and needs to be clarified
01. The salary sealing as per ESI shceme is Rs. 10000/-. Contribution towards the scheme by deducting amount started w.e.f. March, 2007. Now salaries of some of the employees during that time was under Rs. 10000/- where as salaries of those after rise have exceeded Rs. 10000/-. So, do those employees will be covered under the sacheme or not. ? need clarification regarding this matter.
02. Earlier, petrol allowance was paid to some employees which is now added into the salary package. So, to calculate gross salary, will petrol amount be included or not ?
03, The form says “VALID FOR 13 WEEKS FROM THE DATE OF APPOINTMENT”. In such case, what date of appointment to be mentioned of old staff.
Please Suggest it urgent
Thanks & regards
Shraboni
From India, Mumbai
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1Following are our doubts regarding ESI scheme and needs to be clarified
01. The salary sealing as per ESI shceme is Rs. 10000/-. Contribution towards the scheme by deducting amount started w.e.f. March, 2007. Now salaries of some of the employees during that time was under Rs. 10000/- where as salaries of those after rise have exceeded Rs. 10000/-. So, do those employees will be covered under the sacheme or not. ? need clarification regarding this matter.
02. Earlier, petrol allowance was paid to some employees which is now added into the salary package. So, to calculate gross salary, will petrol amount be included or not ?
03, The form says “VALID FOR 13 WEEKS FROM THE DATE OF APPOINTMENT”. In such case, what date of appointment to be mentioned of old staff.
Please Suggest it urgent
Thanks & regards
Shraboni
From India, Mumbai
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-Ans for 01 -
Esi contribution period is April - Sep, and Oct - to March... if an employee's
salary has increased from sealing limit (10K PM Gross) has to be a member of the ESI till the closer of coming contribution period.
Ans for 02- Since its (Petrol Allow.) has now become the part of monthly salary therefore ll attract ESI.
Ans for 03 - Question is not clear..
Bye
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Esi contribution period is April - Sep, and Oct - to March... if an employee's
salary has increased from sealing limit (10K PM Gross) has to be a member of the ESI till the closer of coming contribution period.
Ans for 02- Since its (Petrol Allow.) has now become the part of monthly salary therefore ll attract ESI.
Ans for 03 - Question is not clear..
Bye
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Dear Sandeep,
Thank you for your reply, but things are not very clear. Can you help me with an example?
My third question is: in the ESIC Form, it is mentioned that ESIC-TICO is valid for 13 weeks from the date of appointment. Now, if an old employee has been appointed in the company for more than 13 weeks, can they fill out the form? If yes, what appointment date should be put in?
Thanks & Regards,
Shraboni
From India, Mumbai
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Thank you for your reply, but things are not very clear. Can you help me with an example?
My third question is: in the ESIC Form, it is mentioned that ESIC-TICO is valid for 13 weeks from the date of appointment. Now, if an old employee has been appointed in the company for more than 13 weeks, can they fill out the form? If yes, what appointment date should be put in?
Thanks & Regards,
Shraboni
From India, Mumbai
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Dear Shraboni,
When you are filling out Form 1, there is a column that mentions "Date of Appointment/Entry." The same applies to Form 13. It actually means to input the date of appointment or the date of entry into the ESI Scheme, whichever is later.
Let me explain, due to the current revision of the wage ceiling from Rs. 7,500 to Rs. 10,000, many employees who were previously outside the purview of ESI have now come under its coverage. So, for these employees, the column "DATE OF APPOINTMENT" will be the date from which the revised ceiling came into effect, i.e., when they came under ESI Coverage.
Regards,
SC
From India, Thane
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When you are filling out Form 1, there is a column that mentions "Date of Appointment/Entry." The same applies to Form 13. It actually means to input the date of appointment or the date of entry into the ESI Scheme, whichever is later.
Let me explain, due to the current revision of the wage ceiling from Rs. 7,500 to Rs. 10,000, many employees who were previously outside the purview of ESI have now come under its coverage. So, for these employees, the column "DATE OF APPOINTMENT" will be the date from which the revised ceiling came into effect, i.e., when they came under ESI Coverage.
Regards,
SC
From India, Thane
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Dear Shraboni,
ESIC ceiling limit was increased from Rs. 7500 to Rs. 10,000 and became applicable from October 2006. The employees who were earning a salary of Rs. 10,000 or less come under ESIC and continue to pay their contributions. However, those who receive a salary increase, for example, by Rs. 100 or Rs. 200, and their salary reaches Rs. 10,200 in October, are not required to pay the contribution. Employees who receive a raise in, let's say, November or December, are obligated to continue paying the contribution until March.
Regards,
Vijeta
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ESIC ceiling limit was increased from Rs. 7500 to Rs. 10,000 and became applicable from October 2006. The employees who were earning a salary of Rs. 10,000 or less come under ESIC and continue to pay their contributions. However, those who receive a salary increase, for example, by Rs. 100 or Rs. 200, and their salary reaches Rs. 10,200 in October, are not required to pay the contribution. Employees who receive a raise in, let's say, November or December, are obligated to continue paying the contribution until March.
Regards,
Vijeta
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If the salary of an employee at the start of the contribution period is less than Rupees 10,000 per month, you will have to deduct the ESI for the entire contribution period, irrespective of the fact that his salary has increased to more than Rupees 10,000 in between. The employee will get the benefits during the full benefit period immediately commencing after that.
As far as petrol expense payment is concerned, it will be added to the salary for the purpose of ESI, since the payment is nothing but conveyance allowance. The conveyance allowance is taken into consideration for the computation of ESI.
Deepak Thukral
Chandigarh
From India, Chandigarh
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As far as petrol expense payment is concerned, it will be added to the salary for the purpose of ESI, since the payment is nothing but conveyance allowance. The conveyance allowance is taken into consideration for the computation of ESI.
Deepak Thukral
Chandigarh
From India, Chandigarh
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Dear friend,
Regarding question 3, you have a temporary card. Please visit the ESI Local office to have it replaced with a permanent card. Bring along FORM 37 to confirm your continued enrollment with them. They will issue the permanent card to you.
Regards,
MG
9842511533
From India, Madras
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Regarding question 3, you have a temporary card. Please visit the ESI Local office to have it replaced with a permanent card. Bring along FORM 37 to confirm your continued enrollment with them. They will issue the permanent card to you.
Regards,
MG
9842511533
From India, Madras
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Dear Shraboni,
There are 2 contribution periods, i.e., Oct. to Mar. and Apr. to Sept. If any member falls under ESIC in any of the periods or any month, their ESI deduction continues until the completion of the period. In your question, if the ESI ceiling limit is effective from March, you should deduct ESI contribution for those employees whose gross salary is less than Rs. 10,000 and exceeds Rs. 10,000. Employees whose salary exceeds Rs. 10,000 will be out of ESI from April onwards.
Regarding petrol expenses, if it is payable in the monthly salary, then it attracts ESIC coverage and deduction.
I have not understood the third question. Please specify it properly.
Regards,
Bhushan Dahanukar
From India, Mumbai
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There are 2 contribution periods, i.e., Oct. to Mar. and Apr. to Sept. If any member falls under ESIC in any of the periods or any month, their ESI deduction continues until the completion of the period. In your question, if the ESI ceiling limit is effective from March, you should deduct ESI contribution for those employees whose gross salary is less than Rs. 10,000 and exceeds Rs. 10,000. Employees whose salary exceeds Rs. 10,000 will be out of ESI from April onwards.
Regarding petrol expenses, if it is payable in the monthly salary, then it attracts ESIC coverage and deduction.
I have not understood the third question. Please specify it properly.
Regards,
Bhushan Dahanukar
From India, Mumbai
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Q No. 1
Any employee whose salary is up to the ceiling of ESI coverage shall be covered under ESI. If his ESI contribution is paid in any particular month and thereafter his salary rises beyond the ceiling of ESI, he shall continue to be a member of ESI. His ESI contribution shall be deducted, and all compliances shall be done, at least for that particular contribution period, i.e., April to September or October to March, whichever is applicable.
Q No. 2
All the components of salary as defined in the Wage under ESI and mentioned in the salary slip, ESI shall be calculated on that. However, if any component, although mentioned in the salary slip, has a payment interval of more than two months, it does not come under the purview of ESI. For example, medical allowance, conveyance allowance, etc., if paid regularly but at an interval of three months, shall not attract ESI.
Hope it clears your doubt.
Shabbir
From India, New Delhi
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Any employee whose salary is up to the ceiling of ESI coverage shall be covered under ESI. If his ESI contribution is paid in any particular month and thereafter his salary rises beyond the ceiling of ESI, he shall continue to be a member of ESI. His ESI contribution shall be deducted, and all compliances shall be done, at least for that particular contribution period, i.e., April to September or October to March, whichever is applicable.
Q No. 2
All the components of salary as defined in the Wage under ESI and mentioned in the salary slip, ESI shall be calculated on that. However, if any component, although mentioned in the salary slip, has a payment interval of more than two months, it does not come under the purview of ESI. For example, medical allowance, conveyance allowance, etc., if paid regularly but at an interval of three months, shall not attract ESI.
Hope it clears your doubt.
Shabbir
From India, New Delhi
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Hi Shrabani,
Though the salaries would have been hiked in between and the employee's gross salary may exceed Rs. 10,000.00, both the employee and employer are liable to pay ESI until the completion of that contribution period (April - Sep and Oct - Mar).
If Petrol Allowance or Conveyance allowance is paid as part of your salary, it attracts ESI.
The ESI temporary card is valid for 13 weeks. Once you receive it, you need to provide it to the respective employees for availing treatment. Afterward, you need to apply for a permanent ESI Card along with the temporary card and a family photo of the employee. You may approach the local ESI office for further clarifications.
Regards,
Kayal
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Though the salaries would have been hiked in between and the employee's gross salary may exceed Rs. 10,000.00, both the employee and employer are liable to pay ESI until the completion of that contribution period (April - Sep and Oct - Mar).
If Petrol Allowance or Conveyance allowance is paid as part of your salary, it attracts ESI.
The ESI temporary card is valid for 13 weeks. Once you receive it, you need to provide it to the respective employees for availing treatment. Afterward, you need to apply for a permanent ESI Card along with the temporary card and a family photo of the employee. You may approach the local ESI office for further clarifications.
Regards,
Kayal
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ESIC Coverage After Relocation
Our company is situated in an area where it is covered under ESIC. We are planning to relocate to an area where there is no ESIC coverage. Most of our workmen have been with us for more than 5 years and are members of the ESIC scheme. We want to understand if the ESIC will continue for them in our new location where there is currently no ESIC coverage.
Regards
From India, Pune
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Our company is situated in an area where it is covered under ESIC. We are planning to relocate to an area where there is no ESIC coverage. Most of our workmen have been with us for more than 5 years and are members of the ESIC scheme. We want to understand if the ESIC will continue for them in our new location where there is currently no ESIC coverage.
Regards
From India, Pune
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