Can someone tell me whether esi is must in an organisation.what if an organisation does not deducts esi
From India, Coimbatore
From India, Coimbatore
1
HI i dont know why this arises out here. this is a statutory requirement and you have to deduct ESI for all eligible employee’s.
Dear Tejharsh,
#Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons.
#Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings and newspaper establishments employing 20* or more persons.
#Further under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 20* or more persons in certain States/UTs.
So, if any of the above point is applicable to your organization, then you must take coverage under the ESI Act and comply as per the Act.
If, the Act is applicable and your organization do not comply with it, then under section 39:
[5(a)] : If any contribution payable under this Act is not paid by the principal employer on the date on which such contribution has become due, he shall be liable to pay simple interest at
the rate of twelve per cent. per annum or at such higher rate as may be specified in the regulations till the date of its actual payment :
Provided that higher interest specified in the regulations shall not exceed the lending rate of interest charged by any scheduled bank.
[5(b)] : Any interest recoverable under clause (a) may be recovered as an arrear of land revenue or under section 45-C to section 45-I
Hope this will help you.
From India, Delhi
#Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons.
#Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings and newspaper establishments employing 20* or more persons.
#Further under section 1(5) of the Act, the Scheme has been extended to Private Medical and Educational institutions employing 20* or more persons in certain States/UTs.
So, if any of the above point is applicable to your organization, then you must take coverage under the ESI Act and comply as per the Act.
If, the Act is applicable and your organization do not comply with it, then under section 39:
[5(a)] : If any contribution payable under this Act is not paid by the principal employer on the date on which such contribution has become due, he shall be liable to pay simple interest at
the rate of twelve per cent. per annum or at such higher rate as may be specified in the regulations till the date of its actual payment :
Provided that higher interest specified in the regulations shall not exceed the lending rate of interest charged by any scheduled bank.
[5(b)] : Any interest recoverable under clause (a) may be recovered as an arrear of land revenue or under section 45-C to section 45-I
Hope this will help you.
From India, Delhi
HI Adding to my comment, there is an option, if you have fully furnished hospital as prescribed, yes you can be exempted to pay the contribution.
Dear Tejarsh
The above stated answer is incomplete.
Every employee is entitled for ESIC benefit whose gross salary is within/upto Rs 15,000/- per month. The employer deducts 1.75% every month from employee's gross amount. The employer also contributes 4.75% of the gross amount of every month. The total amount is deposited to the ESIC account every month by the employer.
As per ESIC Act any establishment/factory has to registered its company name in the ESIC with the minimum employee strength of 10 persons.
From India, Kolkata
The above stated answer is incomplete.
Every employee is entitled for ESIC benefit whose gross salary is within/upto Rs 15,000/- per month. The employer deducts 1.75% every month from employee's gross amount. The employer also contributes 4.75% of the gross amount of every month. The total amount is deposited to the ESIC account every month by the employer.
As per ESIC Act any establishment/factory has to registered its company name in the ESIC with the minimum employee strength of 10 persons.
From India, Kolkata
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ESI contribution rates lowering.pdf