Esi

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2013 Dear All,

Is ESI act will applicable if my company employees having the 30 employees whose salary is more 50 K PM.

Note: I know ESI applicable if factory employees more that 10 employees. My only question here is my employees salary is more than 50 K so that employees will not fall under the 15000 slab?? in this case ESI act applicable ?

@VaibhavJ

@VaibhavJ (Expert)
Follow

21 August 2013 Hey,

No, esi is not applicable in your case.

Thanks

CA BHARATH KUMAR

CA BHARATH KUMAR (Expert)
Follow

22 August 2013 no esi applicable because of salary exceeding 15k

Upgrade to CAclubindia Pro. Subscribe Now!

Ankur Garg

Ankur Garg (Expert)
Follow

23 August 2013 ESI applicability is two step process:

1. ESI eligibility criteria;
2. ESI deduction criteria.

ESI eligibility criteria: That is, when employee is covered by ESI?

Employee is covered when the following components is less than or equal to Rs. 15,000
a. Basic;
b. HRA;
c. Transport/Conveyance Allowance:

ESI deduction criteria: That is, at what amount ESI contribution/deduction is to be calculated?

The components are as under:
a. Basic;
b. HRA;
c. Transport Allowance:
d. Special/Conveyance Allowance

For both the above situations reimbursement will not be considered.

Ankur Garg

Ankur Garg (Expert)
Follow

23 August 2013 To know more regarding ESI benefits you are requested to visit the link given below:

http://www.esic.nic.in/benefits.php

http://www.esic.nic.in/other_scale_mb.php

Delhi Website:
http://www.esicdelhi.org.in/index1.php

LIABILITY TOWARDS ESI

As per law, the liability towards ESI is 6.50% of the total salary paid to an employee. The contribution payable to the government is shared as under:-

1. Employee contribution: 1.75%
2. Employer contribution: 4.75%
Total:- 6.50.%

In other words, the maximum liability of ESI per employees is Rs. 975, out of which Rs. 263 shall be recovered from the employee and balance will be contributed by the Company.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2013 Really Nice Info...

Thanks all of you

Querist : Anonymous

Querist : Anonymous (Querist)

13 September 2013 For one of my client ESI inspection just happen where ESI inspectors has told that

ESI act will start applicable the movement you cross 10 employees , but you have to start deducting the ESI 15 K, till then you are start filing nill returns.

Please share for any different views.

Ankur Garg

Ankur Garg (Expert)
Follow

14 September 2013 As per my understanding ESI applicability starts only after you cross 10 employees. Before that there is no need to do anything.

Upgrade to CAclubindia Pro. Subscribe Now!