ESIC Deduction - Exemption From Deduction If Work Not Labour Type?

Hi all,

The ESI limit has been increased from Rs. 15,000 to Rs. 21,000. My company is involved in electrification work and we are registered for ESI and PF contributions. We deduct ESI contributions from employees who earn below Rs. 21,000.

As a HR executive, my current salary is Rs. 18,000, so I am now subject to ESI deductions due to the new rule. I have a question regarding this change: my role does not involve labor-intensive work; I primarily work in the office. Can I be exempted from ESI deductions, or is it mandatory for all departments to comply with the new limit?

Thank you.

No where it's mentioned as ESI is applicable for a particular category of employees. It is applicable for all employees irrespective of permanent employees, office staff, managers, casual employees, contractual employees, etc. The only criteria is the ceiling limit of ₹21,000/-. So, any employee who earns ₹21,000 and below is entitled to ESI coverage.

If the establishment is covered under ESIC, then all employees below a gross salary of ₹21,000 have to be covered.

No way of getting an exemption unless you exceed the ceiling fixed in the ESI Act or provide equal or more benefits than the ESI Corporation through your present company or organization.

V. MURALI