Hi Folks, I am working with a pharma retail company, and most of our employees are covered under the ESI and PF acts. However, some of our competitor companies are not providing ESI benefits but are offering Mediclaim to their employees whose CTC is 8000. My question is whether this procedure aligns with the ESI act because, to my understanding, employees with a CTC of less than 15000 should be covered under the ESI act and not Mediclaim.
Please provide your valuable inputs at the earliest.
Regards, SS
From India, Hyderabad
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Please provide your valuable inputs at the earliest.
Regards, SS
From India, Hyderabad
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You are right, if any employee is getting Rs. 15,000/- as CTC, then he should be covered under the E.S.I. Act. However, some of your competitor companies are not providing E.S.I. This is not right. They should abide by the rules and regulations under the E.S.I. Act.
From India, Faridabad
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6From India, Faridabad
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As per the ESI Act, if someone is receiving a gross salary of 15k (not CTC as mentioned by you), then they should be covered under the ESI Act. Therefore, ESI deductions should be made and deposited. Mediclaim is not a substitute for ESIC as it is a social security legislation, with sickness benefits being one of them.
From India, Delhi
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From India, Delhi
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If any organization (factory, shop, etc.) is not complying with the statutory liabilities under any labor laws, including the ESI Act of 1948, then they may be doing so at their own risk and responsibility. Various laws, including the ESI Act of 1948, provide for prosecution, levy of interest, and damages.
Furthermore, the benefits under mediclaim policies are limited to the agreement of the policy. In contrast, the medical benefits under the ESI Act have no cap, and additional cash benefits, as well as medical facilities for family members, are also available under the said Act.
Thank you.
From India, Noida
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Furthermore, the benefits under mediclaim policies are limited to the agreement of the policy. In contrast, the medical benefits under the ESI Act have no cap, and additional cash benefits, as well as medical facilities for family members, are also available under the said Act.
Thank you.
From India, Noida
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Enhancement of Maternity Benefits under the ESI Act,1948.pdf
BENEFITS UNDER ESI.ppt