ESI COVERAGE

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satish tomer (Querist)
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26 May 2008 IN MY COMPANY THERE ARE 24 EMPLOYESS, OUT OF WHICH 10 ARE DRAWING SALARY LESS THAN 10000.PLEASE ADVISE
1) WHETHER ESI IS APPLICABLE IN OUR COMPNAY WHICH IS A LOGISTIC COMPANY AND ALSO ENGAGED IN TRANSPORTATION
2)WE PAY BASIC, HRA, CONVEYANCE, SPL ALLOWANCE AND FIXED ANNUAL MEDICAL. PLEASE ADVISE WHETHER ALL THESE ARE TO BE INCLUDED FOR THE PURPOSE OF CALCULATING SALARY FOR ESI COVERAGE

S.RAVICHANDRAN

S.RAVICHANDRAN (Expert)
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26 May 2008 As regards ESI coverage , there is no exclusion for nomenclature. All allowances are includible for ESI purpose.
The nature of company's is not relevant.

Drawing more than Rs.10000/- are exempt from deduction of ESI.

S.Ravichandran

Ram Avtar Singh

Ram Avtar Singh (Expert)
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27 May 2008 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.

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).

i hope it will be helpfull to you.

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