ESI compulsion and amendment in Act

Subodh ( ) (402 Points)

15 September 2008

Dear All,

My company who is in IT business not provides EST to employees. I want to know is there any compulsion for ESI as per law? We are providing group mediclaim to employees then ESI is mandatory? What is the limit of ESI? I think it was previously gross salary Rs 6500 and 20 employees now it is Rs10000.

Can anybody provide me proper information on that because I don’t have enough knowledge on ESI??

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6 Replies

abid (accountant) (169 Points)
Replied 15 September 2008

hi Subhodh ,

if the co. is running a manufacturing unit with power with minium no. of employees that is 10 then esi is applicable otherwise not.

your co. is providing group mediclaim that is not sufficient for applicablity of esi. the limit is now 10000/- this is basic not gross salary

CA CS CIMA Prakash Somani (Landmark Group) (23487 Points)
Replied 15 September 2008

Ya Abid is right

(Guest)

dear all

esi calculate over the gross salary not basic as per esi act ...

thx

S.Srinivasaraghavan (Chief Financial Officer and Co) (11318 Points)
Replied 23 September 2008

Yes, Mr. Dharmapal is right.

ABHISHEK JAIN (SERVICE) (35 Points)
Replied 19 January 2009

Dear Friends,

Does any locational crietaria is there for applicability of ESI Act. What I mean to say if a Company having its registered office in a village ( Manufacturing Unit and most of the employees are also there) but some of the employees work in Mumbai? does it make any difference as far as the law is concerned. The company is a manufacturing unit in stainless steel sector having over thousand of employees?

Does for applicability of ESI ACT any notified sector or unit should be there by Govt.