Hi,
You can avoid ESIC only, if you pay all your employees a salary above Rs. 10000 a month (gross).
Let me also add, the ESI Act, 1948 applies to factories employing 10 or more employees when using power and non-power factories after employing 20 employees.
warm regards,
Umesh Chaudhary
(welcomeumesh@yahoo.com)
From India, Delhi
141You can avoid ESIC only, if you pay all your employees a salary above Rs. 10000 a month (gross).
Let me also add, the ESI Act, 1948 applies to factories employing 10 or more employees when using power and non-power factories after employing 20 employees.
warm regards,
Umesh Chaudhary
(welcomeumesh@yahoo.com)
From India, Delhi
Dear Friend,
Although I am unable to give the exact information you require, Kindly click on the following link, it will give you some required information,
https://www.citehr.com/search_new.php?q=ESI+Act
Pls let me know was this information useful,,
If not let me try out more & give information,,,,
In CiteHR you will get A to Z information on HR…..
Regards
M. Peer Mohamed Sardhar
093831 93832
From India, Coimbatore
Although I am unable to give the exact information you require, Kindly click on the following link, it will give you some required information,
https://www.citehr.com/search_new.php?q=ESI+Act
Pls let me know was this information useful,,
If not let me try out more & give information,,,,
In CiteHR you will get A to Z information on HR…..
Regards
M. Peer Mohamed Sardhar
093831 93832
From India, Coimbatore
Hi!
I think Esi is applicable to your establishment as you employeed more than 20 persons and even in BPO their will be some staff below 10,000 slab as esi celing was raised to 10000 on 1 oct 06 and it is deifficult to manupulation in records in and industry like this, and same thing as other people said in an industry so big and doing well one must try to find ways to get rid of it, infact how much is 1.75 % + 4.75% is a very small amount and to is to be paid on a very small part of your total employee strength. Or else you to take an excemption from the act by justifying that you have arrangements for better medical facilities than esi and that is a very long process. Eg- I.O.C have taken from the applicability of ESI as they are providing facilities medical benifit to their employees on their own.
Frm
Abhinav
From India, Delhi
I think Esi is applicable to your establishment as you employeed more than 20 persons and even in BPO their will be some staff below 10,000 slab as esi celing was raised to 10000 on 1 oct 06 and it is deifficult to manupulation in records in and industry like this, and same thing as other people said in an industry so big and doing well one must try to find ways to get rid of it, infact how much is 1.75 % + 4.75% is a very small amount and to is to be paid on a very small part of your total employee strength. Or else you to take an excemption from the act by justifying that you have arrangements for better medical facilities than esi and that is a very long process. Eg- I.O.C have taken from the applicability of ESI as they are providing facilities medical benifit to their employees on their own.
Frm
Abhinav
From India, Delhi
Dear Friend,
Listed below are the rules for ESI & PF. Pl read carefully- Any establishment with 20 and above employees - ESI & PF is compulsory.
- For all employees Upto Salary of Rs 6500/- per month, its compulsory. Beyond that its optional.
- Rate is 12% employees contribution and 12% employers contribution.
- The figure of 20 includes your security staff, casual workers, housekeeping etc. so add all of them to check if you are twenty or not.
- If you meet the criteria as given then there is NO ESCAPING esi pf.
- These guys will come to know sooner or later and when they do they WILL slap you with a PENALTY OF 1.5 TIMES THE ORIGINAL AMOUNT.
- Best solution is please go around to the nearest labour/EPF office. There are a lot of Labour consultants there. or check the yellow pages. They will give you the correct advice.
- My advice is that since you are in this seat, your job is to find complete details, give complete details to your bosses. then let them take the decision else later when you are slapped a penalty your boss will turn around and tell you " Why didn't you tell me earlier ??"
Any more queries please feel free to ask or refer to website
epfindia.nic.in
Riyaz
From India, Delhi
Listed below are the rules for ESI & PF. Pl read carefully- Any establishment with 20 and above employees - ESI & PF is compulsory.
- For all employees Upto Salary of Rs 6500/- per month, its compulsory. Beyond that its optional.
- Rate is 12% employees contribution and 12% employers contribution.
- The figure of 20 includes your security staff, casual workers, housekeeping etc. so add all of them to check if you are twenty or not.
- If you meet the criteria as given then there is NO ESCAPING esi pf.
- These guys will come to know sooner or later and when they do they WILL slap you with a PENALTY OF 1.5 TIMES THE ORIGINAL AMOUNT.
- Best solution is please go around to the nearest labour/EPF office. There are a lot of Labour consultants there. or check the yellow pages. They will give you the correct advice.
- My advice is that since you are in this seat, your job is to find complete details, give complete details to your bosses. then let them take the decision else later when you are slapped a penalty your boss will turn around and tell you " Why didn't you tell me earlier ??"
Any more queries please feel free to ask or refer to website
epfindia.nic.in
Riyaz
From India, Delhi
Hi Srineevas,
Please note that only way out of Esi is to ensure that your company bring all the employees outside the purview of the act by paying more than Rs.10000/- also note we may have to pay heavy price in way of fines which would be time consuming and costly too. therefore find if your company comes under the purview of the act at the first instance and advise management accordingly with good citation if necessary.
Regards,
prasad.
From India, Madras
Please note that only way out of Esi is to ensure that your company bring all the employees outside the purview of the act by paying more than Rs.10000/- also note we may have to pay heavy price in way of fines which would be time consuming and costly too. therefore find if your company comes under the purview of the act at the first instance and advise management accordingly with good citation if necessary.
Regards,
prasad.
From India, Madras
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ESI contribution rates lowering.pdf