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No. of employees for ESIC registration ?

Page no : 2

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 12 May 2011

number of employees are 20 without power or 10 with power, ( recently they have decided to put registration on 10 without power also)

this no is obligatory for registration without contribution eligibility fact, some employees may have exempted, but for count they are eligible.

in wages / salary computed for ESI purpose, basic + DA+ food allwances are taken in account.

contribution is 1.75% from employees and 4.75% from employers



Nitin (CA practice) (436 Points)
Replied 12 May 2011

Can u attatchgive refrence to  any such latest circular/Notification in this regard .


U S Sharma (glidor@gmail.com) (21056 Points)
Replied 12 May 2011

 

Coverage under the ESI Act,1948

Applicability
Under Section 2(12) The Act is applicable to the factories employing 10 or more persons irrespective of whether power is used in the process of manufacturing or not.

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.

Further, u/s 1(5) of the Act, the Scheme has been extended to Private Medical and Educational Institutions employing 20 or more persons in certain States .

The State Govt. has been requested to issue notification under Section 1(5) on the lines of Section 2(12) keeping the threshold limit for coverage as 10 employees instead of 20.

The existing wage-limit for coverage under the Act, is Rs.15,000/- per month (with effect from 01.05.2010).

AREAS COVERED
The ESI Scheme is being implemented area-wise by stages. The Scheme has already been implemented in different areas in the following States/Union Territories 

STATES

All the States except Nagaland, Manipur, Tripura, Sikkim, Arunachal Pradesh and Mizoram.

UNION TERRITORIES 
Delhi, Chandigarh and Pondicherry

https://www.esic.nic.in/coverage.htm


U S Sharma (glidor@gmail.com) (21056 Points)
Replied 12 May 2011

 

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.70/- 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

Contribution Period 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

https://www.esic.nic.in/contribution.htm


U S Sharma (glidor@gmail.com) (21056 Points)
Replied 12 May 2011

enclosed here is full benefit guide and applicability of ESI act


Attached File : 329710 43 esicfeng170910.pdf downloaded: 738 times



DALIP KUMAR (ACCOUNTANT) (22 Points)
Replied 24 May 2011

how many employees regisration in ESIC for Software & I.T compnaies

thanks


U S Sharma (glidor@gmail.com) (21056 Points)
Replied 25 May 2011

Originally posted by : DALIP KUMAR

how many employees regisration in ESIC for Software & I.T compnaies

thanks

TEN


ranjit (PROPRITOR) (249 Points)
Replied 20 July 2011

m fabrication contractor n no. of employee in my firms is 7. all r having salary below 15000/-  But the company in which i m working, need the ESI registration of every contractor. i tried to register my firm online. but at some stage it ask for the date from which no of employee is10 or more. i cant proceed further until fill that place. and the registration is must for continuing  work in that company. what should i do?


RAJENDRA (ACCOUNTANT) (23 Points)
Replied 11 April 2012

Please tell me friends

what condition required for registraion in ESI & PF Act. in proprietorship firm


RAJENDRA (ACCOUNTANT) (23 Points)
Replied 11 April 2012

agar propriter ship firm me 40 se jyada employee working kr rhe h to kya esko company bana complasary h kya




Prakashkumar R. Jethva (Owner) (24 Points)
Replied 27 April 2012

Dear Rajendra

For Regn. in PF, if no. of employees 20 or more PF registration is mandatory & for Regn. in ESI if establishment is covered under definition of Factory using electricity then minimum number is 10 or more otherwise 20 or more.  And it also important that if no. of employee is less than 20 than also employer, for the welfare of employee, can get PF registration voluntarily.

Further there is not any no. of employees are fixed requiring mandatory registration as Company under Companies Act, 1956. It is purely voluntary to continue as proprietor or to incorporate Private or Public Company.

 


ranjit (PROPRITOR) (249 Points)
Replied 18 May 2012

how to get shop act in rural area for esi registration?

 


ranjit (PROPRITOR) (249 Points)
Replied 19 May 2012

Dear mr. U. S. Sharma,

under section 2(12) , The Act is applicable to the factories employing 10 or more persons irrespective of whether power is used in the process of manufacturing or not.   for online application we cant submit the form until fill the no of employee is 20 or more. why is it so?


Suresh Jain (proprietor) (174 Points)
Replied 20 May 2013

One Factory have more than 10 employee and registered under ESIC Act since 4 years. Now the establishment reduced their production and having only 3 employeesince 18 months. How factory can surrender the ESIC Code on this point that their are only 3 employee.




homi (no) (38 Points)
Replied 18 July 2013

Dear members,

The ESI Corporation has approved to enhance wage ceiling from Rs 10,000 per month to Rs15,000 per month for coverage of employees under the ESI Scheme , under the chairmanship of Union Minister of Labour and Employment Mallikarjun Kharge.

Conveyance allowance must be excluded from salary part ---

CONVEYANCE ALLOWANCE
Fixed conveyance allowance flowing out of a wage settlement or as per terms and conditions of employment should be treated as wages under section 2(22) for all purposes except:

  1. Amount towards conveyance paid or reimbursed to any employee for incurring expenses for specific duty related journey
  2. Reimbursement of actual cost of conveyance for coming to work and going from work on production of ticket or season ticket and subject to proof of actual expenditure
  3. Payment of certain amount for maintenance of vehicle depending upon cadre of the official and category of vehicle and subject to production of records for actually maintaining the vehicles
  4. Fixed allowance paid at an interval exceeding 2 months, unless such payment is made as per contract or agreement.

with regards



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