Please read the Statment below by the press release of the labor deparment.
dont panic and confuse.
Under the ESI Act, 1948 the Employees drawing wages uptoRs. 15000/- per month are eligible to avail ESI facilities subject to the applicable contributory conditions. The ceiling of wages for persons with disability is Rs.25,000/- per month. There is no minimum wage limit for availing ESI facilities.
This information was given by Minister of State for Labour & Employment Shri Kodikunnil Suresh in the Lok Sabha today in reply to a written question.
quote:Press Information Bureau English Releases
From India, Hyderabad
15dont panic and confuse.
Under the ESI Act, 1948 the Employees drawing wages uptoRs. 15000/- per month are eligible to avail ESI facilities subject to the applicable contributory conditions. The ceiling of wages for persons with disability is Rs.25,000/- per month. There is no minimum wage limit for availing ESI facilities.
This information was given by Minister of State for Labour & Employment Shri Kodikunnil Suresh in the Lok Sabha today in reply to a written question.
quote:Press Information Bureau English Releases
From India, Hyderabad
Friends,
Further to Mr. Vikas Sharma's query as above I have another question as under :
Suppose I am drawing gross salary of Rs.23500/- p.m. and due to proposed rise in ESI ceiling to Rs.25000/-, I will be covered in ESI and I shall have to pay 1.75% my contribution and my employers' liability to my ESI contribution will be 4.75% of my gross salary.
Now suppose I am having CTC pay method in a company, do I have to pay all 6.5% of ESI contribution from my pocket only? Is not employer responsible to pay his part of contribution @ 4.75%? People say (also refer Press Note of Livermint News) that in case of CTC system, take home salary of employee will reduce by 6.5% if he is first time covered under ESI. What is all these ? How it all works?
Can any of you friends explain and enlighten me of the facts ?
Thanks and regards,
Janak Soni
From India, Surat
Further to Mr. Vikas Sharma's query as above I have another question as under :
Suppose I am drawing gross salary of Rs.23500/- p.m. and due to proposed rise in ESI ceiling to Rs.25000/-, I will be covered in ESI and I shall have to pay 1.75% my contribution and my employers' liability to my ESI contribution will be 4.75% of my gross salary.
Now suppose I am having CTC pay method in a company, do I have to pay all 6.5% of ESI contribution from my pocket only? Is not employer responsible to pay his part of contribution @ 4.75%? People say (also refer Press Note of Livermint News) that in case of CTC system, take home salary of employee will reduce by 6.5% if he is first time covered under ESI. What is all these ? How it all works?
Can any of you friends explain and enlighten me of the facts ?
Thanks and regards,
Janak Soni
From India, Surat
There is no system of payment like CTC but it is a practice by employers (especially new generation companies) to show the total pay obligation or cost to company by adding up all the contributions, charges etc that the company should bear in addition to salary. Whatever be the system, you are liable to pay only 1.75% of your gross salary, say if it is 23500, then 412, if it is 25000, Rs 438. Here gross pay is just the monthly fixed salary without considering incentives and such allowances which are paid in an interval of more than two months. It does not also include any contribution by the employer towards PF, gratuity or bonus. That means salary for the purpose of coverage and payment of ESI is very strictly to the fixed portion of the salary or the gross salary without reference to cost to company (CTC). Employer can show his cost to company by adding up 4.75% of gross which he contributes towards ESI but cannot make employee to bear it.
Though I have written all the above, I feel many companies who work out the salary on a total sum as CTC and bring down by bifurcating the same by different names depending upon its significance in present contributions (like PF, Bonus) or future payments like gratuity, will be working again on it based on the new amendment so that they will not suffer economically.
Regards,
Madhu.T.K
From India, Kannur
Though I have written all the above, I feel many companies who work out the salary on a total sum as CTC and bring down by bifurcating the same by different names depending upon its significance in present contributions (like PF, Bonus) or future payments like gratuity, will be working again on it based on the new amendment so that they will not suffer economically.
Regards,
Madhu.T.K
From India, Kannur
Thanks Madhu for sharing important update. I have dealt with ESI Office . So it indicates that there will be changes in PF percentage and slab too in near future.
From India, Delhi
From India, Delhi
Dear all,
I work for a BPO with a employee count of 40. Please let me know if the BPO sector also needs to provide ESI.
In the discussion on this thread, it is mentioned that an employee drawing less than 15000 Rs per month is eligible for ESI.
Is this amount gross or net salary?
Regards,
Megha
From India, Maisuru
I work for a BPO with a employee count of 40. Please let me know if the BPO sector also needs to provide ESI.
In the discussion on this thread, it is mentioned that an employee drawing less than 15000 Rs per month is eligible for ESI.
Is this amount gross or net salary?
Regards,
Megha
From India, Maisuru
Dear Megha, In calculation of ESIC, only washing allowance is excluded. Other all allowances are covered in this 15000/- figure.
From India, Surat
From India, Surat
Hi Members, Hope all are doing good ! As per discussion with ESIC Branch Manager, Limit has been increased but Notification is not released till now .It can be effective from 1 october 2013. Jagdish
From India, Delhi
From India, Delhi
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ESI Rule 52-Amended-Aver age Wage Limit Increased For Certain Cases Under Exemption From Payment .pdf