If the wage/salary of an employee as working in a covered establishment and is covered under the Act even when his wage/salary exceeds Rs.6500 per month, then he will be entitled to remain covered upto Rs. 6500 per month. For instance, an employee who is a member and whose salary was Rs.6400 per month, he will continue to be a member for at least Rs.6500 per month even when his salary is increased as Rs.7000 per month. It the employer and employee both agree, there is no bar in enrolling such or any other employee as member under the Employees’ Provident Fund Scheme, 1952.

G. Mahalingam
ASSOCHAM is organizing the workshop on Knowledge of Labour Laws Essential for Managers / Supervisors on 28-29 November 2008 at New Delhi. For further details, kindly conact: www.assocham.org

From India , Delhi
As per the ESI ACT

ESI Limit is Rs.10,000
Employees Strength for coverable Companies is : 10 for Companies that use power for Production etc, else 20 for Shops and Estts

1. Company One does not have the Required Number of amployees in any case , So you need not worry.

2. For Company Two you need to Consider the following
a. If the Development of the product is the Result of using any Equipment that uses power then the Emp Strength for covering ESI is 10 (I.e if you have a software product which you develop, Mostly this is the case in most soft dev companies) , Else its 20
b. Make a count of Employees drawing 10000 and below (Above 10001 need not be counted) (As per your Data you presently have only 5 or so employees) , If the count is below 10 You need not worry about ESI at all.
Note: If you have contract employees , Like Security etc , they also will be counted as long as they work in the Company premises.

@Nagaraj H V , See if the place where your employees are working are in the ESI Coverable area List , This list is avaliable at ESI local offices and reagional office. May be avaliable in the net too. If the area is not in the list then you need not pay ESI (Employees anyway dont get coverage)

Note: Also if the establishment is covered then you are not allowed to take a letter from Employee that He/She does not want ESI ,etc and not give befit, This facility is not provided in the ESI act contraty to whats suggested by some others in the forum

From India , Bangalore
Hi I want to know that if we do not pay pf challan by 15 of the month then are there any grace days to make the payment. Trupita:wink:
From India , Pune
what is the minimum wages as applicable to karnataka state and central government for labours maintaining roads and buildings
jayan jayanthan
what is minimum wages applicable to labours maintaining building and roads as applicable to karnataka and central government. also what is the esi and pf rules for the labours mentioned above
jayan jayanthan

From India , Mangaluru
Dear Satyanarayana,
Thanks for the reply. I have got 2 points.
1. My auditor says that IT companies use power and so we will come under the "With power category" and so 10 will be the limit for ESI
2. He also says that there is no rule saying that employees who are drawing more than 10K need not pay PF.
Can you tell me if this is true?
Warm regards,

From India , Bangalore
yes she will get half of the salary amount and she will also get the full faclity in esi hospital if her 176 days esi amount is sumit in esi office you have check with your hr then you have to approch to esi hospital.
With Regards
Punnt Bhasin
yes he is right there is no rule how has more then 10k salary.
i am taking more then 20k but i have to pay pf amount then how can 10k salaryed person will not come under this act. he 100% come s under this act. for more detail you can call me on 9990686878
With Regards
Puneet Bhasin

From India , Delhi
IF an person is covered under ESI Act 1948 Maternity benefits rules does not implies to employer and hence employer need not pay the maternity benfit salary.
ESI pays double the rate for 84 days on daily average salary basis as per form 5 data and additional one month more salary to IP in case of complication and additional rest prescribed by doctor subject to all certification provided by her.
I hope this shall fullfill your requirement
(Labour Law Consultas)
For R N Consultant
Voice: 098 33 606065

From India , Mumbai
PF & ESI is Not applicable to Ist firm, there are less than 20 employees and also working without power.
For IInd firm, 1 employee is less than 6500, 4 employees is between 6500 to 10000 and others employes are getting more than 10000.
Here we will see, what are the basic+DA of all employees. If more than 10 employees's basic+DA is less than 6500 then it is required to cover under PF.
For ESI coverage - Here we will see if any washing allowance are giving to the employees and their salary without W.A. is less then 10000 and also total employees (counted more than 20 without power) or (counted more than 10 with power) then ESI registration is required otherwise not.
Rajeev Kumar Saxena

From India , Bangalore
As per PF Act, for new coverage we need not enroll the employees who are drawing more than 6500/- . In the same line even for covered establishment if a employee joins on salary above 6500 need not be covered as per statute. Once the employee enrolled as member in the PF he should continue as a member even his salary crosses over 6500/- & his contributions can be limited upto 6500/- only. I am sure that the opinion given by the audior may not be correct.

From India , Hyderabad
Mr. Satyanarana,
Thanks for explaination, i was also looking for this clarity on applicability.
we are also an software organisatioin having 19 employees with 8 people drawing salary less than Rs. 10000/-
The ESI act says, the organisation will get covered if you are having more than10 employees and using power. As an sofware organisation we also use power for lighting and Computers.
My doubt is, what is the interpretation of the phrase with the use of power.
Second doubt is about the coverable empoyees, the act says the moment have 10 employees the company gets covered, the act does not mention that the applicability is based on number of coverable employees.
do you have any support material such as supreme court case laws to support your interpretation

From India , Madras

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2021 Cite.Co™