Dear seniors,
I have a query on ESI. I want to know that ESI would be applicable on IT industry or not. If it is applicable then please tell me the exact date of coverage on software industries. One thing more suppose if 10-15 employees are getting less than 10 K then it would be applicable or not.
I don’t have much information about ESI. I want to know the things in brief. Please help me out.
Thanks
Suman
From India, Gurgaon
11I have a query on ESI. I want to know that ESI would be applicable on IT industry or not. If it is applicable then please tell me the exact date of coverage on software industries. One thing more suppose if 10-15 employees are getting less than 10 K then it would be applicable or not.
I don’t have much information about ESI. I want to know the things in brief. Please help me out.
Thanks
Suman
From India, Gurgaon
Yes, ESI is very much applicable to IT/ITES industries.
If the gross salary of the employee is less than and equal to 10000/- pm, then, ESI will be applicable. It doesn't matter how many employees are in less than 10000/- salary bracket.
If you want to avoid ESI for 10-15 employees, you can increase the gross salary of those employees to take them out of ESI.
Regards
Amit
From India, New Delhi
If the gross salary of the employee is less than and equal to 10000/- pm, then, ESI will be applicable. It doesn't matter how many employees are in less than 10000/- salary bracket.
If you want to avoid ESI for 10-15 employees, you can increase the gross salary of those employees to take them out of ESI.
Regards
Amit
From India, New Delhi
dear suman
ESI is applicable for software company from the day one.
if an establishment has 20 or more total employee in your case this act will apply.applicablity in respect of number of employees is from total employees
not eligible emplyoyee as mentioned by you.
if you have total employees 25 where as ,only 15 are getting less than 10 k ,still this act will apply.
tks
j s malik
From India, Delhi
ESI is applicable for software company from the day one.
if an establishment has 20 or more total employee in your case this act will apply.applicablity in respect of number of employees is from total employees
not eligible emplyoyee as mentioned by you.
if you have total employees 25 where as ,only 15 are getting less than 10 k ,still this act will apply.
tks
j s malik
From India, Delhi
dear suman if gross salary is 10 k or below than only ESI applicable.gross salary is always inclusive of employee share of PF. tks j s malik
From India, Delhi
From India, Delhi
Hi Suman,
Gross Salary equals to the sum of all earnable components of the Salary Structure which are fixed (e.g. Incentives, Bonus, etc. do not add-up while calculating Gross).
To answer specifically your question, if your meant by "inclusive of PF" the Employer's portion of the PF then Gross Salary is 10500/- minus Employer PF.
To find out whether ESI is applicable or not, add up all components of the salary that appear on the left of the payslip (Earnings, considering that no LWP is deducted in that month). Also add any deferred payable component that is not mentioned on the payslip but accrues on a monthly basis, example, Medical Re-imbursement, LTA, etc. If the sum equals to or is less than 10000/- the employee falls in the ESI bracket.
Regards,
Neeraj K. Singh
From India, Mumbai
Gross Salary equals to the sum of all earnable components of the Salary Structure which are fixed (e.g. Incentives, Bonus, etc. do not add-up while calculating Gross).
To answer specifically your question, if your meant by "inclusive of PF" the Employer's portion of the PF then Gross Salary is 10500/- minus Employer PF.
To find out whether ESI is applicable or not, add up all components of the salary that appear on the left of the payslip (Earnings, considering that no LWP is deducted in that month). Also add any deferred payable component that is not mentioned on the payslip but accrues on a monthly basis, example, Medical Re-imbursement, LTA, etc. If the sum equals to or is less than 10000/- the employee falls in the ESI bracket.
Regards,
Neeraj K. Singh
From India, Mumbai
Hey Suman ,
First you should understand why ESIC is as benefit given to employee ?
Why?
Answer is to give him social security .
As you know ESIC has various benefits so its prime responsibility to every employer to have ESIC for those employees who are geting gross salary of Rs. 10000/- excluding washing allowance ok.
If your peoples are getting more then 10000/- then you may have Group Mediclaim /Hospitalisation from any Insurance service TPA provider.
Thanks ..............
Shine
From India, Bhopal
First you should understand why ESIC is as benefit given to employee ?
Why?
Answer is to give him social security .
As you know ESIC has various benefits so its prime responsibility to every employer to have ESIC for those employees who are geting gross salary of Rs. 10000/- excluding washing allowance ok.
If your peoples are getting more then 10000/- then you may have Group Mediclaim /Hospitalisation from any Insurance service TPA provider.
Thanks ..............
Shine
From India, Bhopal
ESI is applicable to IT if gross salary is 10 k then esi is applicable, otherwise no ESI would be applied.. regards, satish
From India, Bangalore
From India, Bangalore
dear
Software sector is treated analogous with that of the manufacturing sector and not as service sector as far as ESI covereage is concerned.
therefore if there are 10 coverable employees (means employees or trainees whose earned gross is less than 10,001/- per month on any day, then your co is coverable from that date onwards.
kindly note that for software development(IT) the threshold limit is 10 whereas for BPO(ITeS) the threshold limit is 20 employees for coverage under ESI.
From India, Madras
Software sector is treated analogous with that of the manufacturing sector and not as service sector as far as ESI covereage is concerned.
therefore if there are 10 coverable employees (means employees or trainees whose earned gross is less than 10,001/- per month on any day, then your co is coverable from that date onwards.
kindly note that for software development(IT) the threshold limit is 10 whereas for BPO(ITeS) the threshold limit is 20 employees for coverage under ESI.
From India, Madras
Some companies have tendency of giving salary interms of a gross amount rather than splitting it into sub sections. A monthly expense sort of.
In such a case, please advise if ESI should still be applicable if the total salary is less that Rs10K?
From India, Vadodara
In such a case, please advise if ESI should still be applicable if the total salary is less that Rs10K?
From India, Vadodara
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ESI applicable to software development companies - Bom HC 2012.pdf
ESI-Not-applica ble-on-Conveyan ce-Allowance.do c