Hi Friends, we are a small design engineering company. I have a query - ESIC is mandatory for people whose salary (wages) is up to Rs. 15,000. As a company, we have enrolled everyone in the group medical insurance from United India Insurance. Consequently, we end up paying for the ESIC employee contribution of 1.75% and employer contribution of 4.25%, totaling about 6%, in addition to the group medical insurance.
Is there a way to opt-out of ESIC?
Can we do away with ESIC?
From India, Bangalore
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Is there a way to opt-out of ESIC?
Can we do away with ESIC?
From India, Bangalore
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ESI Contribution Obligations
ESI contribution is a statutory obligation of the employer. The employer's contribution is 4.75% and not 4.25% of gross wages.
Mediclaim is not a substitute for ESI. You can't do away with ESI contributions for employees getting gross wages up to ₹15,000.
Regards,
Kamal
From India, Pune
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177ESI contribution is a statutory obligation of the employer. The employer's contribution is 4.75% and not 4.25% of gross wages.
Mediclaim is not a substitute for ESI. You can't do away with ESI contributions for employees getting gross wages up to ₹15,000.
Regards,
Kamal
From India, Pune
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Thank you, Kamal, for correcting me on the percentage deduction. I know it is mandatory. I am just checking with you and the group if anyone has tried to do away with it by writing to ESIC or taking it up with them in some way or another.
From India, Bangalore
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From India, Bangalore
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Exemption from ESIC Act
The ESIC Act has provisions to grant exemption to employers who can provide superior or similar benefits to their employees, and not for any other reasons. Large public sector units generally get an exemption as they have 24-hour medical/hospital facilities.
From India, Pune
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The ESIC Act has provisions to grant exemption to employers who can provide superior or similar benefits to their employees, and not for any other reasons. Large public sector units generally get an exemption as they have 24-hour medical/hospital facilities.
From India, Pune
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