Hi, I'm working as Manager H.R. in an Interior firm. One of our employees who recently joined has submitted an application requesting to stop deductions for ESIC Contribution since his father is a Government Servant, and he and his family are covered under the CGHS facility. Can anyone tell me if it is okay to stop ESIC deductions?
From India, Mumbai
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From India, Mumbai
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No he cant if is salary is below 15,000 Rs ESIC contribution has to be deducted every month.
From India, Mumbai
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2From India, Mumbai
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Dear kiran, If he is below <15000/-he is eligble for esic.But his father will not be elgible Thnks, Mohd
From India, Hyderabad
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From India, Hyderabad
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Dear Mr. Chachad Kiran & All,
Please note:
1. ESI deduction is statutory, and companies are liable to deduct the same from eligible employees.
2. No individual can opt-out of ESI deduction on their own.
3. If the gross salary is up to Rs. 15,000/-, please deduct ESI contribution.
4. Employees' parents, wife, and children will also be covered and are eligible for ESI benefits.
Regards,
K. Ramachandra
Bangalore
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Please note:
1. ESI deduction is statutory, and companies are liable to deduct the same from eligible employees.
2. No individual can opt-out of ESI deduction on their own.
3. If the gross salary is up to Rs. 15,000/-, please deduct ESI contribution.
4. Employees' parents, wife, and children will also be covered and are eligible for ESI benefits.
Regards,
K. Ramachandra
Bangalore
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Talk to the concerned employee and explain to him that his request cannot be considered since his coverage under ESI is as per provisions of law. Vasant Nair
From India, Mumbai
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From India, Mumbai
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No we can’t exempt any single employee from ESIC whoever getting below 15,000. If you exempt that employee from ESI deduction then while ESI inspection you have answer it and you will be charged....
From India, Madras
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From India, Madras
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Hi Kiran,
ESI benefits are for the employees. We need to help them understand this benefit, which they can avail from ESI. Unlike his father, a government employee, who has benefits, similarly, in private organizations, we have PF & ESI benefits for employees. They consider this as a deduction from their salary and are aware of the benefits. So, my suggestion would be to make them understand the benefits since it's a statutory law, not made by private organizations.
Regards,
Nimisha
From India, New Delhi
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ESI benefits are for the employees. We need to help them understand this benefit, which they can avail from ESI. Unlike his father, a government employee, who has benefits, similarly, in private organizations, we have PF & ESI benefits for employees. They consider this as a deduction from their salary and are aware of the benefits. So, my suggestion would be to make them understand the benefits since it's a statutory law, not made by private organizations.
Regards,
Nimisha
From India, New Delhi
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No i don’t think so, because he is not dependent on his farther. After 21 years the facility what is farther is getting from government is not applicable to him.
From India, Mumbai
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From India, Mumbai
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Hi Mr. Chachad Kiran, what ever it may be if he is eligible (gross less than 15000) then the organisation should recover 1.75% . NO COMPROMISE IN THIS
From India, Coimbatore
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From India, Coimbatore
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Hi Kiran, It is mandatory for all employees including staff, those who are getting less then 15000/- gross salary (Not CTC). Regards Praveen Career Growth Consultancy Bangalore
From India, Bangalore
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From India, Bangalore
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I agree with Nimisha. 99% of employees will think this is an unnecessary deduction; they don't know the ESI benefits. As HR professionals, we need to make them understand the benefits of ESI & PF.
Regards,
Praveen
From India, Bangalore
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Regards,
Praveen
From India, Bangalore
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Dear Chachad Kiran,
First of all, I will make it clear that if the gentleman is working with your organization and has become independent from his parents, then he is not entitled to CGHS facilities provided to his father, mother, and other family members.
If his salary is less than Rs. 15,000/- per month, then it is mandatory for him to pay the ESIC contribution. He cannot be exempted under any circumstances.
Thank you,
Sushil Kumar
From India, Delhi
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First of all, I will make it clear that if the gentleman is working with your organization and has become independent from his parents, then he is not entitled to CGHS facilities provided to his father, mother, and other family members.
If his salary is less than Rs. 15,000/- per month, then it is mandatory for him to pay the ESIC contribution. He cannot be exempted under any circumstances.
Thank you,
Sushil Kumar
From India, Delhi
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I am also facing this same question,so as per the government provision we have to deduct ESI from all eligible employees. Subas
From India, Hyderabad
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From India, Hyderabad
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I work for a construction company where ESIC is applied. I have more than one question:
ESIC Deduction for Short-term Workers
1. Not some but most of the workers here work for less than 10 days and leave for their places. Do we have to deduct ESIC for them? If it is compulsory, it's a pity.
Handling PF and ESIC Deductions
2. Some of our workers are requesting not to deduct PF for them. If I don't deduct PF, how can I deduct only ESIC for them? Please help me with a quick solution.
Regards,
G.V
From India, Surat
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ESIC Deduction for Short-term Workers
1. Not some but most of the workers here work for less than 10 days and leave for their places. Do we have to deduct ESIC for them? If it is compulsory, it's a pity.
Handling PF and ESIC Deductions
2. Some of our workers are requesting not to deduct PF for them. If I don't deduct PF, how can I deduct only ESIC for them? Please help me with a quick solution.
Regards,
G.V
From India, Surat
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SC Judgment-No obligation to excess contribution than Statutory Limit.docx