ABHIJIT VERMA (XYZ) 23 April 2009
I have joined a garment industry as HR. I am very new to this field. The company comes under ESI act. The employees are getting medical allowances for first 6 months and are not covered under ESI. After 6 month a salary revision is done and this medical allowance is stopped and person gets coverage under ESI. Pls let me know that whether this is legally correct or not. If it is not legal pls provide me how to not include employees for first six months under the coverage
mahesh pandey (Vice President) 24 April 2009
Dear Abhijit,
Since ur company is covered under the ESI as u "ve mentioned ,then all the employees drawing a monthly salary up 2 Rs. 10000/- will be covered under the provisions of the ESI Act,1948 n as an employer u r required 2 deduct ESI contribution n deposit the same 2 corporation along with employers contribution. If u ' ve paid medical allowance 2 ur employees it ' ll u not exempt u from liabilities of ESI Sve n except in the case of employee getting salary more than Rs. 10000/- p.m.
Tks
mahesh pandey
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