The wage ceiling for coverage under the ESI Act, for an employee under disability raised to Rs 25000/ month The wage ceiling for coverage under the Employees State Insurance Act, of an employee with disability- under Equal Opportunities Protection of Rights and Full Participation Act 1995, and National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999- has been fixed at Rs.25,000/- per month, effective 1.4.2008. Accordingly those employed in factories and establishments drawing monthly salary up to Rs.25,000/-, will be covered under the ESI Act. However, the respective employers shall not pay employer’s share of contribution up to a maximum period of three years from the date of commencement of the contribution period. Regards, Madhu.T.K
From India, Kannur
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4483From India, Kannur
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Hi,
As it is mentioned, "However, the respective employers shall not pay the employer's share of contribution up to a maximum period of three years from the date of commencement of the contribution period." Does this mean that for all disabled employees with a salary up to 25,000, the employer does not need to contribute for up to three years from the start date of the contribution period? Will the employer only start contributing from the fourth year?
For example, if an employee has a monthly wage of 21,000 for the period ending on April 30, 2008, then the employer contribution calculated for them will be '0' until April 30, 2011. If the employer does not contribute for three years, what is the benefit for the disabled employee? Moreover, it is a loss for the employee. Can anyone clarify this?
Thanks,
Madhu
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As it is mentioned, "However, the respective employers shall not pay the employer's share of contribution up to a maximum period of three years from the date of commencement of the contribution period." Does this mean that for all disabled employees with a salary up to 25,000, the employer does not need to contribute for up to three years from the start date of the contribution period? Will the employer only start contributing from the fourth year?
For example, if an employee has a monthly wage of 21,000 for the period ending on April 30, 2008, then the employer contribution calculated for them will be '0' until April 30, 2011. If the employer does not contribute for three years, what is the benefit for the disabled employee? Moreover, it is a loss for the employee. Can anyone clarify this?
Thanks,
Madhu
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No, there will be no loss to employees since the contribution will be paid by the government for up to 3 years instead of the employer.
Best Regards,
Mahendra
http://www.tallynine.com
From India, Jamnagar
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Best Regards,
Mahendra
http://www.tallynine.com
From India, Jamnagar
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Dear Mr. Madhu,
Thank you for your valuable information. I feel this law will not be helpful to employees because after three years, employers have to pay ESI, which will be a huge amount. Then disabled persons to be appointed.
Thank you,
J. S. Malik
From India, Delhi
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Thank you for your valuable information. I feel this law will not be helpful to employees because after three years, employers have to pay ESI, which will be a huge amount. Then disabled persons to be appointed.
Thank you,
J. S. Malik
From India, Delhi
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Dear Madhu,
Please let us know whether the employer needs to contribute the employer's contribution from the fourth year onwards. Also, please inform us about the procedure to register one of our employees under the disability category online.
As we were not aware of this clause, we have not covered our employee under ESI, as his gross salary is more than Rs. 15,000 per month. Please advise.
Thank you.
From India, Hyderabad
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Please let us know whether the employer needs to contribute the employer's contribution from the fourth year onwards. Also, please inform us about the procedure to register one of our employees under the disability category online.
As we were not aware of this clause, we have not covered our employee under ESI, as his gross salary is more than Rs. 15,000 per month. Please advise.
Thank you.
From India, Hyderabad
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Hi All,
I am a newly joined. Can somebody explain to me if an employee has an accident outside the company during or after office hours, who will be responsible for providing accident benefits under the ESIC Act to that employee and what is the process?
Mukesh
From India, New Delhi
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I am a newly joined. Can somebody explain to me if an employee has an accident outside the company during or after office hours, who will be responsible for providing accident benefits under the ESIC Act to that employee and what is the process?
Mukesh
From India, New Delhi
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If the accident had happened while on duty (travelling on duty), naturally, the ESI will consider it as an employment injury. Similarly, an accident that took place while going home after duty or while coming to the office will also be treated as an employment injury or accident, provided the time of the accident and the place of the accident are the same time and place he normally goes to the office or home.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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Notification Regarding enhancement of Wage ceiling for ESI w.e.f. 01st May 2010.pdf