We have an Annual Maintenance Contract in a Central Government Company, and this company insists on ESIC Policy as well as W.C. Policy. Hence, I have the following queries regarding the ESIC vs. WC Policy Act:
1. If some employees have a wage of more than Rs. 15,000 on a fixed salary/month basis and they draw less than Rs. 15,000 but above Rs. 6,500 during a month, do we have to deduct the ESIC Premium of 1.75% from their salary and deposit 4.75% from ours?
2. If the fixed monthly salary is more than Rs. 15,000, does the employee require a W.C. Policy as they are not covered under the ESIC Act and may draw less than Rs. 15,000 in some months of the year?
3. For the Central Government Company, if we have deployed X number of employees for an Annual Maintenance Contract, do we have to take both ESIC and W.C. Policy for the X number, or should some separate numbers like Y for the ESIC Act and Z for the WC Policy (X = Y + Z) be availed or not?
4. Is it recommended to take a W.C. Policy for employees exempted from the ESIC Act?
From India, Vadodara
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1. If some employees have a wage of more than Rs. 15,000 on a fixed salary/month basis and they draw less than Rs. 15,000 but above Rs. 6,500 during a month, do we have to deduct the ESIC Premium of 1.75% from their salary and deposit 4.75% from ours?
2. If the fixed monthly salary is more than Rs. 15,000, does the employee require a W.C. Policy as they are not covered under the ESIC Act and may draw less than Rs. 15,000 in some months of the year?
3. For the Central Government Company, if we have deployed X number of employees for an Annual Maintenance Contract, do we have to take both ESIC and W.C. Policy for the X number, or should some separate numbers like Y for the ESIC Act and Z for the WC Policy (X = Y + Z) be availed or not?
4. Is it recommended to take a W.C. Policy for employees exempted from the ESIC Act?
From India, Vadodara
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This is to inform you that as per the ESIC Act, the limit for ESIC coverage is Rs. 15,000. If an employee's wages exceed Rs. 15,000, that employee cannot be covered under ESIC. Even if the employee's wages fall below Rs. 15,000 in any given month, they will still not be covered under ESIC.
Thank you.
From India, Thana
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14Thank you.
From India, Thana
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Please note that persons not covered under ESI need to be protected under WC. Employees eligible to draw a salary of Rs. 15,000 per month but drawing a salary less than Rs. 15,000 due to loss of pay will remain outside the scope of ESI. If you have Y employees covered under ESI, then the remaining Z need to be covered under WC.
Hope this helps.
Regards,
Preetam Deshpande
From India, Mumbai
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Hope this helps.
Regards,
Preetam Deshpande
From India, Mumbai
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Employee Insurance Requirements
All employees working with your organization, whether regular or on contract, should be insured. Employees must be covered under ESI if they receive a salary of up to ₹15,000. Employees must be covered under the WC Policy if they receive a salary of more than ₹15,000. This is a simple equation.
Regards,
Dilip Nandanwar
Vidarbha Industries
Labour Law Consulting & Outsourcing
Navi Mumbai
[Email Removed For Privacy Reasons]
From India, Mumbai
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All employees working with your organization, whether regular or on contract, should be insured. Employees must be covered under ESI if they receive a salary of up to ₹15,000. Employees must be covered under the WC Policy if they receive a salary of more than ₹15,000. This is a simple equation.
Regards,
Dilip Nandanwar
Vidarbha Industries
Labour Law Consulting & Outsourcing
Navi Mumbai
[Email Removed For Privacy Reasons]
From India, Mumbai
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ESI Deduction Guidelines
If any employee earns $1501 and above, you do not have to deduct ESI. However, if he or she earns $1500 or less, then you must deduct 1.75% from the employee, while the company will provide the remaining 4.75%, totaling 6.50%, which you must deposit to ESI monthly. Calculate this on the gross amount for each employee earning $1500 or less.
Hope it's clear.
Regards,
S.M. Ganguli
From India, Calcutta
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If any employee earns $1501 and above, you do not have to deduct ESI. However, if he or she earns $1500 or less, then you must deduct 1.75% from the employee, while the company will provide the remaining 4.75%, totaling 6.50%, which you must deposit to ESI monthly. Calculate this on the gross amount for each employee earning $1500 or less.
Hope it's clear.
Regards,
S.M. Ganguli
From India, Calcutta
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In regard to your query no. 1, I wish to clarify that you may be confused by mixing up PF with the ESI Act. The limit of Rs. 6,500 and above is relevant for the deduction of PF contributions. The ESI Premium for employees and employers must be paid as long as an employee continues to draw a salary up to Rs. 15,000; it will cease thereafter.
For your query no. 2, if an employee is appointed on a fixed monthly salary exceeding Rs. 15,000, their deductions towards employee contributions shall continue until the end of the contribution period, which is April to September and October to March. However, the employee shall be entitled to benefits under the scheme for the following six months of their respective benefit period, which is January to June and July to December. Subsequently, they will be required to be covered under a W. C. Policy.
Your query is not entirely clear, but if you are inquiring about the coverage of two sets of employees, you need to cover only those employees under the WC policy whose salary exceeds Rs. 15,000 and have moved out of ESI coverage.
Yes, you are required to take a W. C. Policy for exempted Employees.
Regards,
From India, Mumbai
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For your query no. 2, if an employee is appointed on a fixed monthly salary exceeding Rs. 15,000, their deductions towards employee contributions shall continue until the end of the contribution period, which is April to September and October to March. However, the employee shall be entitled to benefits under the scheme for the following six months of their respective benefit period, which is January to June and July to December. Subsequently, they will be required to be covered under a W. C. Policy.
Your query is not entirely clear, but if you are inquiring about the coverage of two sets of employees, you need to cover only those employees under the WC policy whose salary exceeds Rs. 15,000 and have moved out of ESI coverage.
Yes, you are required to take a W. C. Policy for exempted Employees.
Regards,
From India, Mumbai
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Dear Priyadarshi, Of late, the ESI Corporation has made it compulsory for the coverage of DGR-sponsored Ex-Army security guards. It is clarified that even though DGR-sponsored Ex-Army security guards employed by you are receiving medical facilities from the Military Hospital, they will still be required to be covered under ESI.
Benefits of ESI Coverage
The background is that the ESI offers a host of benefits such as sickness benefit, disablement benefit (employment injury), maternity benefit, rehabilitation allowance, etc., in addition to providing artificial limbs and appliances, which cannot be provided by the Military Hospital. The Supreme Court held in their judgment in Christian Medical College, Vellore v. ESI Corporation, 2001 LLR 60 (SC) that the ESI Act is applicable even to the hospital staff engaged by the medical college for running its auxiliary services.
Regards,
BS Kalsi
Member since Aug 2011
From India, Mumbai
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Benefits of ESI Coverage
The background is that the ESI offers a host of benefits such as sickness benefit, disablement benefit (employment injury), maternity benefit, rehabilitation allowance, etc., in addition to providing artificial limbs and appliances, which cannot be provided by the Military Hospital. The Supreme Court held in their judgment in Christian Medical College, Vellore v. ESI Corporation, 2001 LLR 60 (SC) that the ESI Act is applicable even to the hospital staff engaged by the medical college for running its auxiliary services.
Regards,
BS Kalsi
Member since Aug 2011
From India, Mumbai
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Under which law / chapter P.F. ,ESIC & P.T. deducted? For Facility / Housekeeping, Security, Contract is there any other rules & regulation for deducting the P.F. / ESIC?
From India, Mumbai
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From India, Mumbai
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We have an Annual Maintenance Contract in a Central Government Company, and this company insists on ESIC Policy as well as W.C. Policy. Hence, I have the following queries regarding the ESIC vs. WC Policy Act:
Query 1: ESIC Premium Deduction
If some employees have a wage of more than Rs. 15,000 on a fixed salary/month basis and they draw less than Rs. 15,000 but above Rs. 6,500 during a month, should we deduct the ESIC Premium of 1.75% of theirs and deposit 4.75% of ours?
Query 2: Requirement for W.C. Policy
If the fixed monthly salary is more than Rs. 15,000, then does the employee require a W.C. Policy as they are not covered under the ESIC Act and may draw less than Rs. 15,000 in some months of a year?
Query 3: ESIC and W.C. Policy for Deployed Employees
For a Central Government Company, if we have deployed X number of employees for an Annual Maintenance Contract, do we need to take both ESIC and W.C. Policy for all X number of employees, or should separate numbers like Y for ESIC Act and Z for WC Policy (X = Y + Z) be availed?
Query 4: W.C. Policy for Exempted Employees
Is it recommended to take a W.C. Policy for employees exempted from the ESIC Act?
From India, Visakhapatnam
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Query 1: ESIC Premium Deduction
If some employees have a wage of more than Rs. 15,000 on a fixed salary/month basis and they draw less than Rs. 15,000 but above Rs. 6,500 during a month, should we deduct the ESIC Premium of 1.75% of theirs and deposit 4.75% of ours?
Query 2: Requirement for W.C. Policy
If the fixed monthly salary is more than Rs. 15,000, then does the employee require a W.C. Policy as they are not covered under the ESIC Act and may draw less than Rs. 15,000 in some months of a year?
Query 3: ESIC and W.C. Policy for Deployed Employees
For a Central Government Company, if we have deployed X number of employees for an Annual Maintenance Contract, do we need to take both ESIC and W.C. Policy for all X number of employees, or should separate numbers like Y for ESIC Act and Z for WC Policy (X = Y + Z) be availed?
Query 4: W.C. Policy for Exempted Employees
Is it recommended to take a W.C. Policy for employees exempted from the ESIC Act?
From India, Visakhapatnam
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