hi
COVERAGE UNDER THE ESI ACT, 1948
The Act was originally applicable to non-seasonal factories using power and employing 20 or more persons; but it is now applicable to non-seasonal power using factories employing 10 or more persons and non-power using factories employing 20 or more persons. (those are drowing 10000/- and below).
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.
The existing wage-limit for coverage under the Act, is Rs.10,000/- per month (with effect from 1.10.2006).
Nagendra
Hyderabad
From India, Hyderabad
2COVERAGE UNDER THE ESI ACT, 1948
The Act was originally applicable to non-seasonal factories using power and employing 20 or more persons; but it is now applicable to non-seasonal power using factories employing 10 or more persons and non-power using factories employing 20 or more persons. (those are drowing 10000/- and below).
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.
The existing wage-limit for coverage under the Act, is Rs.10,000/- per month (with effect from 1.10.2006).
Nagendra
Hyderabad
From India, Hyderabad
hi
COVERAGE UNDER THE ESI ACT, 1948
The Act was originally applicable to non-seasonal factories using power and employing 20 or more persons; but it is now applicable to non-seasonal power using factories employing 10 or more persons and non-power using factories employing 20 or more persons. (those are drowing 10000/- and below).
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.
The existing wage-limit for coverage under the Act, is Rs.10,000/- per month (with effect from 1.10.2006).
Contribution
E.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act. The contribution payable to the Corporation in respect of an employee shall comprise of employer’s contribution and employee’s contribution at a specified rate. The rates are revised from time to time. Currently, the employee’s contribution rate (w.e.f. 1.1.97) is 1.75% of the wages and that of employer’s is 4.75% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage upto Rs.50/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
Collection of Contribution
An employer is liable to pay his contribution in respect of every employee and deduct employees contribution from wages bill and shall pay these contributions at the above specified rates to the Corporation within 21 days of the last day of the Calendar month in which the contributions fall due. The Corporation has authorized designated branches of the State Bank of India and some other banks to receive the payments on its behalf.
Contribution Period and Benefit Period
There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under.
Contribution period Corresponding Cash Benefit period
1st April to 30th Sept. 1st January of the following year to 30th June.
1st Oct. to 31st March 1st July to 31st December of the year following
Nagendra
Hyderabad
From India, Hyderabad
COVERAGE UNDER THE ESI ACT, 1948
The Act was originally applicable to non-seasonal factories using power and employing 20 or more persons; but it is now applicable to non-seasonal power using factories employing 10 or more persons and non-power using factories employing 20 or more persons. (those are drowing 10000/- and below).
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.
The existing wage-limit for coverage under the Act, is Rs.10,000/- per month (with effect from 1.10.2006).
Contribution
E.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act. The contribution payable to the Corporation in respect of an employee shall comprise of employer’s contribution and employee’s contribution at a specified rate. The rates are revised from time to time. Currently, the employee’s contribution rate (w.e.f. 1.1.97) is 1.75% of the wages and that of employer’s is 4.75% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage upto Rs.50/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
Collection of Contribution
An employer is liable to pay his contribution in respect of every employee and deduct employees contribution from wages bill and shall pay these contributions at the above specified rates to the Corporation within 21 days of the last day of the Calendar month in which the contributions fall due. The Corporation has authorized designated branches of the State Bank of India and some other banks to receive the payments on its behalf.
Contribution Period and Benefit Period
There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under.
Contribution period Corresponding Cash Benefit period
1st April to 30th Sept. 1st January of the following year to 30th June.
1st Oct. to 31st March 1st July to 31st December of the year following
Nagendra
Hyderabad
From India, Hyderabad
Hi
Hiten
Please note that you need to Submit FORM -1(Employer registration form) to regional ESIC Office within 15 days at your newly set-up Plant to obtain the ESIC code for your organisation. Upon receipt of Form-1 , they will allot the code and this code will always be used for any future correspondance.
please find attached the Employer Registration Form (Form -1)
Regards
Shashi kant Upadhyay
From India, New Delhi
Hiten
Please note that you need to Submit FORM -1(Employer registration form) to regional ESIC Office within 15 days at your newly set-up Plant to obtain the ESIC code for your organisation. Upon receipt of Form-1 , they will allot the code and this code will always be used for any future correspondance.
please find attached the Employer Registration Form (Form -1)
Regards
Shashi kant Upadhyay
From India, New Delhi
Thanks Shashi ! I have started acting on it. But I am afraid I will not be able to meet the 15 days deadline. Hope there are no severe actions against this. Thanks for your help ! - Hiten
From India, New Delhi
From India, New Delhi
Dear Hiren,
There is a provision by which you can get exemption under ESI. The rule is that you need to have a parallel scheme which should be as good as or better than the present ESI Scheme. The application along with the scheme is made to the Appropriate Government. They then decide whether to grant exemption or not.
The exemption is not given because it is a loss of revenue for ESI. So, if you can approach any High Office by using your contacts, then you can give it a try else just forget the idea and get registered under ESI.
Regards,
SC
From India, Thane
There is a provision by which you can get exemption under ESI. The rule is that you need to have a parallel scheme which should be as good as or better than the present ESI Scheme. The application along with the scheme is made to the Appropriate Government. They then decide whether to grant exemption or not.
The exemption is not given because it is a loss of revenue for ESI. So, if you can approach any High Office by using your contacts, then you can give it a try else just forget the idea and get registered under ESI.
Regards,
SC
From India, Thane
Dear Hiten,
This has reference to your query on ESIC it is to inform you the ceiling limit of ESIC is Rs 10,000 per month which has been ammended from from Rs 7500 recently.
The Area where your factory is situated should not be covered under ESIC then in that case you can be covered under Workmen Compensation policy for all the employees only by doing this U can over come from ESIC.
Otherwise ESIC will be compulsory for all the employees who are drawing a slary of Rs 10,000 per month.
I hope i have cleared your doubt.
Nandish
From India, Bangalore
This has reference to your query on ESIC it is to inform you the ceiling limit of ESIC is Rs 10,000 per month which has been ammended from from Rs 7500 recently.
The Area where your factory is situated should not be covered under ESIC then in that case you can be covered under Workmen Compensation policy for all the employees only by doing this U can over come from ESIC.
Otherwise ESIC will be compulsory for all the employees who are drawing a slary of Rs 10,000 per month.
I hope i have cleared your doubt.
Nandish
From India, Bangalore
Hi
THANKS Nagendra and all my friends nd Seniors, who have provided valuable information regarding ESIC Registration, Its Applicability etc. Everybody spoke abt different org., under different Industries which shud get Registered under ESIC Act. But nobody spoke abt IT Organizations.
SO SENIORS ND FRIENDS PLZ HELP ME BY PROVIDING UR VALUABLE INPUTS 2 A QUERY OF MINE . MY QUERIES ARE:
1. Suppose a small sized Organization engaged in IT o r IT services, is not Registered under ESIC Act, then
(i) is it going 2 b penalizing 4 the organization???? In such a case are the employees
going to face any problem????
If am not mistaken even such organizations are also required 2 get Registered 4 ESI [plz correct me if am wrong].
I also have another query, in such a case where the organization is not registered under ESI, how far is the HR personnel responsible??
(ii) If it’s the organization heads who are not eager to Register [cause they are not keen to provide any sort of benefits 2 the employees, as that wud help them in cutting the cost/expenses made on the whole] ???? Under such a condition what shud the HR personnel do when his suggestions of getting Registered under ESI Act, is not heard by the Organization head.????
2. Second thing that I wud like 2 ask is that if any company is a proprietorship co., then is the ESI Registration compulsory for such a company also??
I wud really b thankful 2 all of u, if u wud spend a few minutes 2 clarify these doubts of mine with your valuable knowledge nd experience. I sincerely thank all of you in advance for sharing ur valuable knowledge & experience.
Thanks & Regards
From India, Mumbai
THANKS Nagendra and all my friends nd Seniors, who have provided valuable information regarding ESIC Registration, Its Applicability etc. Everybody spoke abt different org., under different Industries which shud get Registered under ESIC Act. But nobody spoke abt IT Organizations.
SO SENIORS ND FRIENDS PLZ HELP ME BY PROVIDING UR VALUABLE INPUTS 2 A QUERY OF MINE . MY QUERIES ARE:
1. Suppose a small sized Organization engaged in IT o r IT services, is not Registered under ESIC Act, then
(i) is it going 2 b penalizing 4 the organization???? In such a case are the employees
going to face any problem????
If am not mistaken even such organizations are also required 2 get Registered 4 ESI [plz correct me if am wrong].
I also have another query, in such a case where the organization is not registered under ESI, how far is the HR personnel responsible??
(ii) If it’s the organization heads who are not eager to Register [cause they are not keen to provide any sort of benefits 2 the employees, as that wud help them in cutting the cost/expenses made on the whole] ???? Under such a condition what shud the HR personnel do when his suggestions of getting Registered under ESI Act, is not heard by the Organization head.????
2. Second thing that I wud like 2 ask is that if any company is a proprietorship co., then is the ESI Registration compulsory for such a company also??
I wud really b thankful 2 all of u, if u wud spend a few minutes 2 clarify these doubts of mine with your valuable knowledge nd experience. I sincerely thank all of you in advance for sharing ur valuable knowledge & experience.
Thanks & Regards
From India, Mumbai
Dear Nagendra, OK. What about trainees? Are they employees? Are they required to subscribe to ESI? S. Krishnamoorthy
From United States, Roslindale
From United States, Roslindale
Hi,
Employee State Insurance act says that
Factories or Establishment
using power and employing
10 or more persons
Factories or Establishment
not using power and employing
20 or more persons
You cannot take exemption from ESIC, but you can check this from the ESIC Officer that the area in which you want to start the factory is the notified area for ESIC or not accordingly you can do the things.
But it is better to take the Code no. from ESIC it is beneficial for both employer & employees.
Regards
Priyanka
Employee State Insurance act says that
Factories or Establishment
using power and employing
10 or more persons
Factories or Establishment
not using power and employing
20 or more persons
You cannot take exemption from ESIC, but you can check this from the ESIC Officer that the area in which you want to start the factory is the notified area for ESIC or not accordingly you can do the things.
But it is better to take the Code no. from ESIC it is beneficial for both employer & employees.
Regards
Priyanka
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