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Regarding esic

(Querist) 25 March 2024 This query is : Resolved 
Sir. If the principal employer or the contractor wants to show that it's employees are earning more than 21000 per month than how they will show means they have to show the wages register or any other affidavit or something else. Worker of trade union employer will show or trade union will give any details
Quick Summary
This discussion addresses how employers can demonstrate that their employees earn over £21,000 per month for ESIC purposes, especially when payments are made in cash. It clarifies that employees earning below this threshold are covered by ESIC, with specific contribution rates for FY 2023-24. While bank statements suffice for electronic payments, cash payments require careful documentation, and daily wage earners might be considered contractual labour, potentially affecting their eligibility for benefits like EPF.

kavksatyanarayana (Expert) 25 March 2024
The employees are covered only if their salary is below Rs. 21,000 per month and the organization is covered under ESI. The ESIC has fixed the contribution rate of the employees at 0.75% of their wages and the employer's contribution at 3.25% of the wages for FY 2023-24.
T. Kalaiselvan, Advocate (Expert) 26 March 2024
If the employees are paid the salary by bank then the bank statement would be sufficient to prove that.
Dilip (Querist) 26 March 2024
No sir they are paying cash to the daily wages workers and not issuing wages receipt or any kind of signature from the workers but in law cash receipt to the cash payment signature is complausory I guess but not doing this.think what can be done in such case pls guide
T. Kalaiselvan, Advocate (Expert) 26 March 2024
Daily wages workers cannot be considered as permanent employees hence they are not eligible for the benefits of permanent employees.
Since the employer is paying the salary by cash, it can be considered as contractual labours.
They may not even be eligible for EPF facilities.


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