Who is eligible for ESI in India?

Who is eligible for ESI in India?

To be eligible for the ESI scheme, the employee or the worker’s monthly salary should not exceed Rs. 21,000 and Rs. 25,000 for people with disability.

Who are eligible for ESI and PF?

All employees of a covered unit, whose monthly incomes (excluding overtime, bonus, leave encashment) does not exceed Rs. 21,000 per month, are eligible to avail benefits under the Scheme. Employees earning daily average wage up to Rs. 176 are exempted from ESIC contribution.

Is ESI calculated on basic salary?

ESI calculation comprises of various elements of an employee’s monthly salary such as Basic Pay, Dearness Allowance, City Compensatory Allowance, HRA, Incentives, Attendance and Overtime Payments, Meal Allowance, Uniform Allowance and other special allowances.

What is ESI percentage?

Currently, the employee’s contribution rate (w.e.f. 01.07. 2019) is 0.75% of the wages and that of employer’s is 3.25% of the wages paid/payable in respect of the employees in every wage period.

Is ESI mandatory?

Staying compliant with Employee State Insurance (ESI) ESI is mandatory for employers who have employees working in a non-seasonal factory with more than 10 employees, but only for employees who are earning less than ₹21,000 per paycheck.

What is ESI fund?

The Employee State Insurance (“ESI”) is a contributory fund that has contributions both from the employer and employee and enables Indian employees to take part in a self-financed, healthcare, insurance fund. The scheme provides both cash benefits and healthcare.

What is employee State Insurance Corporation (ESIC)?

Under the ESI (Employee State Insurance) Act, 1948, Employee State Insurance Corporation (ESIC) was set up as a corporate body functioning under the Ministry of Labour and Employment, Government of India.

Is ESI Act applicable to foreign companies in India?

The act also extends its applicability to Foreign Companies located in India. This scheme also includes restaurants and hotels engaged in sales, shops, theatres, Newspaper establishment, Private educational institutions. An advertising agency was held to be within the meaning of shop as per ESI Act. [4]

Who needs to register under the ESIC Act?

A person engaged on a contractual basis like legal consultants, tax consultants ESIC requires registration by all companies/firms/organization where 10 or 20 employees, as required by law are employed. The act also extends its applicability to Foreign Companies located in India.

What is the history of employment State Insurance (ESI) Act?

In March 1943, Prof. B.P.Adarkar was appointed by the Government of India to create a report on the health insurance scheme for industrial workers. The report became the basis for the Employment State Insurance (ESI) Act of 1948.