Dear Seniors, If ESIC is not applicable to one specific area then which act is applicable instead of ESIC? Awaiting your quick response. With Regards, Vineet Deshmukh
From India, Yavatmal
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25From India, Yavatmal
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Hi Vineet, clarify what it mean by Specific area? You mean to say above 15,000 gross salary?
From India, Mumbai
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From India, Mumbai
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Specific area means the area in which ESIC is not applicable. It does not mean an exempted employee. Some areas or districts are exempted from ESIC because they are not covered in the municipal area in which ESIC is applicable.
With Regards,
Vineet Deshmukh
From India, Yavatmal
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With Regards,
Vineet Deshmukh
From India, Yavatmal
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Thanks, Mr. Mohan and Vinit. But I have one more point to discuss regarding the same topic. A few days ago, I came across information stating that, as per a new amendment, the Worker's Compensation Act has been renamed as the Employee Compensation Act, and the criteria for benefits have been altered. Can you please confirm this for me?
From India, Mumbai
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From India, Mumbai
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Dear Seniors, if ESIC is not available in a specific state (like in Sikkim), then which Act will be applicable for workers working in Sikkim? I kindly request you to provide details on where to approach and applicable charges, etc. Please advise.
Regards,
Venkat
From India, Bangalore
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Regards,
Venkat
From India, Bangalore
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Dear Deshmukh,
I would like to provide information. First, you have to approach the ESI Officials regarding the coverage of ESI in your business premises because all business units within 15KM of the ESI Dispensary only have ESI Act coverage—the Act states so. Sometimes, ESI Officials cover some areas under special conditions.
After confirmation from the ESI Officials, if it is not covered under the ESI Act, then you have to go for a Workmen Compensation Policy issued by any general insurance company under the Employees Compensation Act, 1923 (earlier called the Workmen Compensation Act, 1923).
This is based on my knowledge and experience.
Regards,
[Email Removed For Privacy Reasons]
From India, Hyderabad
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I would like to provide information. First, you have to approach the ESI Officials regarding the coverage of ESI in your business premises because all business units within 15KM of the ESI Dispensary only have ESI Act coverage—the Act states so. Sometimes, ESI Officials cover some areas under special conditions.
After confirmation from the ESI Officials, if it is not covered under the ESI Act, then you have to go for a Workmen Compensation Policy issued by any general insurance company under the Employees Compensation Act, 1923 (earlier called the Workmen Compensation Act, 1923).
This is based on my knowledge and experience.
Regards,
[Email Removed For Privacy Reasons]
From India, Hyderabad
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The Employees' Compensation Act is applicable and common. However, the Employees' State Insurance Corporation (ESIC) Act provides for other insurance schemes to be availed if the schemes assure better benefits than ESIC. ESIC grants exemptions for this purpose.
Thanks
From India, Vadodara
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Thanks
From India, Vadodara
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Hi Vineeth, if you can go for Workers' Compensation. However, it will not function like ESI, and it is not as generous in treatment. You can also consider partnering with a hospital for initial aid treatment.
Regards,
Niel Vincent
Officer HR
From India, Bangalore
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Regards,
Niel Vincent
Officer HR
From India, Bangalore
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Workmen's Compensation Act and Medical Benefits
Only in cases of employment injuries, the Workmen's Compensation Act applies wherever the ESI scheme is not covered. However, in respect of usual medical benefits to employees, it is between the management and the union to come under the terms of the wage agreements. Most companies pay one month's basic wage (Basic + DAs) to their employees as medical benefits.
In many companies where the ESI scheme is implemented, if employees are out of coverage of the ESI scheme as they exceed the ESI ceiling limit of Rs. 15,000, the management pays such employees one month's basic + DAs as medical benefits.
Regards,
G.K. Manjunath, Sr. Manager-HR
From India, Bangalore
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Only in cases of employment injuries, the Workmen's Compensation Act applies wherever the ESI scheme is not covered. However, in respect of usual medical benefits to employees, it is between the management and the union to come under the terms of the wage agreements. Most companies pay one month's basic wage (Basic + DAs) to their employees as medical benefits.
In many companies where the ESI scheme is implemented, if employees are out of coverage of the ESI scheme as they exceed the ESI ceiling limit of Rs. 15,000, the management pays such employees one month's basic + DAs as medical benefits.
Regards,
G.K. Manjunath, Sr. Manager-HR
From India, Bangalore
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Considerations for ESIC and Labor Contractors
I would like to add one more aspect to this discussion. If the staff is deployed through a labor contractor and is changed on a frequent basis, the posting of staff is in an area where ESIC is not applicable but all staff have ESIC cards (issued from the main city where ESIC is applicable) and get benefits in the main city.
In such a case, what should the principal employer do? Should they pay ESIC or ask the labor contractor to get WC?
Best regards,
Priyanka
From India, Mumbai
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I would like to add one more aspect to this discussion. If the staff is deployed through a labor contractor and is changed on a frequent basis, the posting of staff is in an area where ESIC is not applicable but all staff have ESIC cards (issued from the main city where ESIC is applicable) and get benefits in the main city.
In such a case, what should the principal employer do? Should they pay ESIC or ask the labor contractor to get WC?
Best regards,
Priyanka
From India, Mumbai
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Dear Sir, If ESI Act is not applicable, The maternity Benefit Act and The Workmens' Compensation Act Will apply. D.Gurumurthy LL.HR & IR Consultant, Hyderabad.
From India, Hyderabad
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From India, Hyderabad
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Medical Coverage Alternatives to ESIC
The Employees' State Insurance Corporation (ESIC) Act provides medical treatment facilities to eligible employees. However, areas not covered under ESIC can be included under the Employee Compensation Act. Simultaneously, employers can offer additional medical facilities such as mediclaim insurance, personal accident insurance, and group life insurance. In these insurance policies, the premium should be paid by the employer, and the employees will benefit from the policy.
Regards,
From India, Mumbai
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The Employees' State Insurance Corporation (ESIC) Act provides medical treatment facilities to eligible employees. However, areas not covered under ESIC can be included under the Employee Compensation Act. Simultaneously, employers can offer additional medical facilities such as mediclaim insurance, personal accident insurance, and group life insurance. In these insurance policies, the premium should be paid by the employer, and the employees will benefit from the policy.
Regards,
From India, Mumbai
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Employee Benefits.doc