Employees’ State Insurance Act of India: Labour Ministry Issues Draft Rules For Enhancement Of Wage Ceiling:
The Ministry of Labour and Employment has recently issued1
<http://maildirect.co.in/reports/link.htm?~cmFqYW4udmFzYUBjb250ZWNoQlBPLmNvbX4xMjY5 MDc5OTM0fm5zaF8xMDZ+MjAxMDAzflQ@~http://www.nishithdesai.com/New_Hotline/Hr/Hr%20Hotline_March2010.htm#a#a>
draft rules for enhancement of wage ceiling (salary limit) from INR
10,000 (approx US$ 225) per month to INR 15,000 (approx. US$ 330) per
month for coverage under the Employees’ State Insurance Act, 1948
(“ESI Act”). Once the draft rules enter into force, a greater section
of employees would get covered under the ESI Act, a federal labour law. It
is expected that this new wage ceiling will be implemented from April 1,
2010, which is the beginning of the new financial year.
Background
The ESI Act provides insurance coverage to eligible employees in the case
of work related injury, sickness, maternity, disablement and death. The
ESI Act applies to all factories employing at least 10 employees. It has
also been extended to shops, hotels, restaurants, cinemas, transport
undertakings, etc. The ESI Act requires the employer and the eligible
employees to contribute insurance premium to the Employees State Insurance
Fund, which is administered by the Employees’ State Insurance
Corporation (“ESIC”). The contributions are to be made at specified
rates which are revised from time to time. With effect from 1997, the rate
of employer’s contribution is 4.75% of each eligible employees’ wages
and that of the employee is 1.75% of the wages. These contributions are to
be made during two contribution periods of six months each. In addition to
the insurance coverage, to the extent an employee is already covered under
the ESI Act, the employer is exempted from its financial liability under
the Employee’s Compensation Act, 1926 and the Maternity Benefit Act,
1961.
Regards
Shanu
From India, Ahmadabad
5The Ministry of Labour and Employment has recently issued1
<http://maildirect.co.in/reports/link.htm?~cmFqYW4udmFzYUBjb250ZWNoQlBPLmNvbX4xMjY5 MDc5OTM0fm5zaF8xMDZ+MjAxMDAzflQ@~http://www.nishithdesai.com/New_Hotline/Hr/Hr%20Hotline_March2010.htm#a#a>
draft rules for enhancement of wage ceiling (salary limit) from INR
10,000 (approx US$ 225) per month to INR 15,000 (approx. US$ 330) per
month for coverage under the Employees’ State Insurance Act, 1948
(“ESI Act”). Once the draft rules enter into force, a greater section
of employees would get covered under the ESI Act, a federal labour law. It
is expected that this new wage ceiling will be implemented from April 1,
2010, which is the beginning of the new financial year.
Background
The ESI Act provides insurance coverage to eligible employees in the case
of work related injury, sickness, maternity, disablement and death. The
ESI Act applies to all factories employing at least 10 employees. It has
also been extended to shops, hotels, restaurants, cinemas, transport
undertakings, etc. The ESI Act requires the employer and the eligible
employees to contribute insurance premium to the Employees State Insurance
Fund, which is administered by the Employees’ State Insurance
Corporation (“ESIC”). The contributions are to be made at specified
rates which are revised from time to time. With effect from 1997, the rate
of employer’s contribution is 4.75% of each eligible employees’ wages
and that of the employee is 1.75% of the wages. These contributions are to
be made during two contribution periods of six months each. In addition to
the insurance coverage, to the extent an employee is already covered under
the ESI Act, the employer is exempted from its financial liability under
the Employee’s Compensation Act, 1926 and the Maternity Benefit Act,
1961.
Regards
Shanu
From India, Ahmadabad
Dear Rohit,,
Just click to the link below..
<http://maildirect.co.in/reports/link.htm?~cmFqYW4udmFzYUBjb250ZWNoQlBPLmNvbX4xMjY5 MDc5OTM0fm5zaF8xMDZ+MjAxMDAzflQ@~http://www.nishithdesai.com/New_Hotline/Hr/Hr%20Hotline_March2010.htm#a#a>
It was already given in the prev notification.
From India, Ahmadabad
Just click to the link below..
<http://maildirect.co.in/reports/link.htm?~cmFqYW4udmFzYUBjb250ZWNoQlBPLmNvbX4xMjY5 MDc5OTM0fm5zaF8xMDZ+MjAxMDAzflQ@~http://www.nishithdesai.com/New_Hotline/Hr/Hr%20Hotline_March2010.htm#a#a>
It was already given in the prev notification.
From India, Ahmadabad
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Notification Regarding enhancement of Wage ceiling for ESI w.e.f. 01st May 2010.pdf