Respected all,
I want your suggestion about the below-mentioned description:
I have a contract of outsourcing with 2 clients. Initially, the employees came to our roll with gross salary, which does not fall under the ESIC wage limit. Now, ESIC has increased the limit, i.e., 15000 gross w.e.f. May 2010.
Keeping in view the above, you are further requested to guide me on whether if employees are receiving Medical Reimbursement, then there is ESIC's liability for the company, or they are exempted from ESIC applicability.
I will be very grateful to you.
With Regards,
Vikas Kumar
09968008206
From India, New Delhi
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16I want your suggestion about the below-mentioned description:
I have a contract of outsourcing with 2 clients. Initially, the employees came to our roll with gross salary, which does not fall under the ESIC wage limit. Now, ESIC has increased the limit, i.e., 15000 gross w.e.f. May 2010.
Keeping in view the above, you are further requested to guide me on whether if employees are receiving Medical Reimbursement, then there is ESIC's liability for the company, or they are exempted from ESIC applicability.
I will be very grateful to you.
With Regards,
Vikas Kumar
09968008206
From India, New Delhi
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Dear Vikas,
The ESI can be exempted only when there is a better or equal scheme in the company, which is not possible practically. So, it can never be avoided whether the company is paying medical or any reimbursement, allowances to their employees. Therefore, ESI would be applicable to those employees who are receiving gross salary/wages up to 15,000/- per month w.e.f 01.05.2010.
Regards, Ajay Shukla Consultant Labour Laws, Kanpur 09839066035
From India, Calcutta
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The ESI can be exempted only when there is a better or equal scheme in the company, which is not possible practically. So, it can never be avoided whether the company is paying medical or any reimbursement, allowances to their employees. Therefore, ESI would be applicable to those employees who are receiving gross salary/wages up to 15,000/- per month w.e.f 01.05.2010.
Regards, Ajay Shukla Consultant Labour Laws, Kanpur 09839066035
From India, Calcutta
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dear friends, ESI limit increased from 10000 to 15000 w.e.f 1/5/10
From India, Hyderabad
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From India, Hyderabad
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Sorry, Mathangi. I wrongly typed earlier. I agreed with Mr. Ajay Shukla, since in the ESI Act, there are certain provisions for exemption from the ESI Act in the following cases:
i) Exemption for a certain class of factories/establishments,
ii) Exemption for a certain class of employees, and
iii) Exemption for certain provisions of the ESI Act.
The first point that the ESI Exemption committee will consider is whether the employer is providing at par or superior benefits to the ESI. However, no company will give equal or more benefits than the ESI. Only public sector companies provide benefits at par or superior benefits to the ESI for regular employees. Some of the main benefits given by the ESI include:
i) Sickness Benefit: An insured person is entitled to 91 days of leave in one year with approximately 60% of their wages, besides medical/hospital benefits.
ii) Enhanced Sickness Benefit: In the case of family planning procedures like Tubectomy/vasectomy, the insured person/women are entitled to cash benefits more than or equal to their wages besides medical/hospital facilities.
iii) Extended Sickness Benefit: In the case of certain long-term diseases like TB/Heart diseases, the medical benefits will be extended to 3 years irrespective of their employment position, and cash benefits will be extended up to 2 years if they have 2 years of insurable employment.
iv) Disablement Benefit: If a person is injured at the workplace or on the way to or from work, they are entitled to Temporary disablement benefits, which are nearly 80% of their wages. If the injury results in the loss of earning capacity due to the loss of a body part, they will be paid a lifelong pension based on the recommendations of the Medical Board. In case of death due to the employment injury, the pension will be paid to the dependents, such as the wife until remarriage, children up to 21 years, widowed mother, etc.
v) Maternity Benefit: If an employee completed 9 months of service under ESI coverage and worked for wages for 70 days in the concerned contribution period, they will be paid 84 days of maternity benefit at a rate more than their wages, besides medical/hospital facilities.
Additionally, insured persons/women are entitled to funeral expenses, super specialty treatment, and in cases of job loss due to retrenchment, they will be paid Unemployment allowances with certain terms and conditions. ESI provides a handful of benefits that no company can afford. Hence, obtaining exemption is said to be highly difficult.
I hope I have clarified all doubts among our HR friends about ESI.
In case of any queries or doubts, do not hesitate to call me at 09443434313 or write to vsyamprasad@yahoo.com.
From India, Hyderabad
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i) Exemption for a certain class of factories/establishments,
ii) Exemption for a certain class of employees, and
iii) Exemption for certain provisions of the ESI Act.
The first point that the ESI Exemption committee will consider is whether the employer is providing at par or superior benefits to the ESI. However, no company will give equal or more benefits than the ESI. Only public sector companies provide benefits at par or superior benefits to the ESI for regular employees. Some of the main benefits given by the ESI include:
i) Sickness Benefit: An insured person is entitled to 91 days of leave in one year with approximately 60% of their wages, besides medical/hospital benefits.
ii) Enhanced Sickness Benefit: In the case of family planning procedures like Tubectomy/vasectomy, the insured person/women are entitled to cash benefits more than or equal to their wages besides medical/hospital facilities.
iii) Extended Sickness Benefit: In the case of certain long-term diseases like TB/Heart diseases, the medical benefits will be extended to 3 years irrespective of their employment position, and cash benefits will be extended up to 2 years if they have 2 years of insurable employment.
iv) Disablement Benefit: If a person is injured at the workplace or on the way to or from work, they are entitled to Temporary disablement benefits, which are nearly 80% of their wages. If the injury results in the loss of earning capacity due to the loss of a body part, they will be paid a lifelong pension based on the recommendations of the Medical Board. In case of death due to the employment injury, the pension will be paid to the dependents, such as the wife until remarriage, children up to 21 years, widowed mother, etc.
v) Maternity Benefit: If an employee completed 9 months of service under ESI coverage and worked for wages for 70 days in the concerned contribution period, they will be paid 84 days of maternity benefit at a rate more than their wages, besides medical/hospital facilities.
Additionally, insured persons/women are entitled to funeral expenses, super specialty treatment, and in cases of job loss due to retrenchment, they will be paid Unemployment allowances with certain terms and conditions. ESI provides a handful of benefits that no company can afford. Hence, obtaining exemption is said to be highly difficult.
I hope I have clarified all doubts among our HR friends about ESI.
In case of any queries or doubts, do not hesitate to call me at 09443434313 or write to vsyamprasad@yahoo.com.
From India, Hyderabad
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