Esi act

sruti gupta (Querist) 15 March 2012 This query is : Resolved
I am working in a public ltd. Company, drawing a salary of Rs. 15000/- per month; however my in hand is Rs. 13,250/- per month will Employees State Insurance Act, be applicable in my case.? Please Explain.

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A V Vishal (Expert) 15 March 2012
Employees of covered units and establishments drawing wages upto Rs.15,000/- per month come under the purview of the ESI Act, 1948 for multi-dimensional social security benefits.

sruti gupta (Querist) 15 March 2012
but how do we calculate such wages had amounted to Rs. 15000/- p.m. as i only get Rs. 13250 in hand.... Kindly explain

A V Vishal (Expert) 15 March 2012
Please understand salary below 15000 is liable for esi

The term “wages” has been defined u/s 2(22) of the Act in three parts as under:-
1. All remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled.

2. and includes any payment to an employee in respect of any period of authorized leave, lock-out, strike which is not illegal or lay of.

3. and other additional remuneration, if any paid at intervals not exceeding 2 months.

However, it does not include:-
a. any contribution paid by the employer to any pension fund or provident fund or under ESI Act,

b. any traveling allowance or the value of any traveling concession,

c. any sum paid to the person employed to defray the special expenses entitled to him by the nature of his employment or

d. any gratuity payable on discharge.

Deepak Nair (Expert) 15 March 2012
All employees drawing salary below Rs.15000/- is entitled for ESI benefit. If your salary crosses 15000/- then you will lose the eligibility for the same.

Your gross salary is calculated (without any deductions such as PF etc) for the said 15000/-.

Mr.Vishal has advised you very well.