Can anybody tell me esic is applicable all over india at same rate or at different rate ?
From India, Mumbai
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ESIC is central govt. scheme. Throughout whole India it has same rate of deudction. Any further doubt, post is welcome Regards Prashant Patil
From India, Nagpur
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Hi Vijay Kumar,

ESI is applicable all over India, except in some union territories. You can check the Employees' State Insurance Corporation site, which provides you with all the necessary information, including the percentage to be deducted, etc.

Best of luck,
Kantha

From India, Madras
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ESIC is Employee State Insurance Contribution. Then how can it be a Central Government Scheme. Please revert. Its applicable to all employees earning Rs.10000 or less per month. Birendra Raj

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Hi Birendra,

First, I want to clarify that ESIC stands for Employees State Insurance Corporation and not contribution. I believe the term "state" is included in its name because the hospitals run by ESIC are under state jurisdiction. However, recently, I heard that they are now also under central control.

Regards,
Prashant Patil

From India, Nagpur
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Dear Prashant,

My apologies for stating it as Corporation rather than Contribution.

Here are a few facts on ESI ACT, 1948:

The Act was originally applicable to non-seasonal factories using power and employing 20 or more persons; but it is now applicable to non-seasonal power-using factories employing 10 or more persons and non-power-using factories employing 20 or more persons.

Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road motor transport undertakings, and newspaper establishments employing 20 or more persons.

The existing wage limit for coverage under the Act is Rs. 10,000 per month (with effect from 1.10.2006).

AREAS COVERED

The ESI Scheme is being implemented area-wise by stages. The Scheme has already been implemented in different areas in the following States/Union Territories:

STATES

All the States except Nagaland, Manipur, Tripura, Sikkim, Arunachal Pradesh, and Mizoram.

UNION TERRITORIES

Delhi, Chandigarh, and Pondicherry.

Trust it clarifies.

Regards,

Birendra Raj


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Hi Birendra Raj, Your information is right. And one thing, ESIC is applicable to only Muncipal Corporation (Urban) limits. Regards Prashant Patil
From India, Nagpur
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Hi,

The ESI Act is applicable to all factories and establishments all over the country. This is only applicable to employees earning under 10,000 (ten k) a month, and a percentage has to be cut from the employee's pay (1.75%), and another percentage is to be paid by the employer (4.75%) of the employee's pay.

A total of 6.5% (4.75% + 1.75%) of wages is to be paid to SBI in Account number 1, which belongs to the Municipal Corporation on or before the 21st of every month. This contribution is used for insuring the employees. After the payment of the monthly contribution, a challan called RC is given to the organization as proof of payment. This corporation is controlled by the central government which regulates the administration of ESI.

Employees earning less than Rs 40 a day are exempted from the payment of contribution. The employer's share of the contribution is, however, payable.

Hope it proves helpful.

All the best.

Regards, Munmun

From India, Mumbai
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