Exemption from ESI
As regards exemption from ESI, though there is a provision to exempt it (Section 87 of the ESI Act 1948), provided that the employees are otherwise in receipt of substantially similar or superior benefits than is provided in the Act for a period of one year at a time, it is virtually impossible to provide matching facilities like medical coverage to employees and family, sickness benefit, etc.
Alternative Option: Enhance Salary Levels
The other option is to enhance salary levels for all employees above the ceiling limit, presently Rs. 21,000/- per month.
From India, Mumbai
As regards exemption from ESI, though there is a provision to exempt it (Section 87 of the ESI Act 1948), provided that the employees are otherwise in receipt of substantially similar or superior benefits than is provided in the Act for a period of one year at a time, it is virtually impossible to provide matching facilities like medical coverage to employees and family, sickness benefit, etc.
Alternative Option: Enhance Salary Levels
The other option is to enhance salary levels for all employees above the ceiling limit, presently Rs. 21,000/- per month.
From India, Mumbai
Creating a Registered PF Trust
In PF, it is possible by creating a registered PF Trust with matching benefits; it is not a very difficult task.
Challenges in ESI Exemption
For ESI, one has to be in a position to match the benefits in-house. Please go through the ESI benefits, then it can be understood how difficult, cumbersome, and costly it is to maintain such facilities.
From India, Mumbai
In PF, it is possible by creating a registered PF Trust with matching benefits; it is not a very difficult task.
Challenges in ESI Exemption
For ESI, one has to be in a position to match the benefits in-house. Please go through the ESI benefits, then it can be understood how difficult, cumbersome, and costly it is to maintain such facilities.
From India, Mumbai
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