Can We Do Away With ESIC If Group Medical Insurance Is In Place

Hi Friends,

We are small design engineering Company.

Have a query, ESIC is mandatory for people whose salary (wages) is upto Rs. 15,000/-. So we as a company have enrolled everyone in the Group medical insurance from United India Insurance. So we end up paying for the ESIC employee contribution 1.75% and employer 4.25% thats about 6% and also the group medical insurance.

Can we do away with the ESIC? Is there anyway we can opt out of ESIC?
7th July 2011 From India, Bangalore

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kprasoon

173

ESI contribution is a statutory obligation of the employer. Employer's contribution is 4.75% and not 4.25% of gross wages.
Mediclaim is not a substitute for ESI. You cant do away with ESI contributions for employees getting gross wages upto 15000/-
regards,
Kamal
7th July 2011 From India, Pune

Kumarganeshv

Thanks Kamal and correcting me on the % deduction.
I know it is mandatory, just checking with you and the group if anyone has tried to do away with it, by writing to ESCI or taking it up with them in some way or the other.
7th July 2011 From India, Bangalore

kprasoon

173

ESIC Act has provisions to grant exemption to employers who can provide superior or similar benefits to its employees and not for any other reasons.
Large public setcor units generally get exemption as they have 24 hours medical/hospital facilities
8th July 2011 From India, Pune

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