31/07/2011
ESI contribution on outside job works
Judgments in this regard provide relief to employers who outsource work to outside establishments.
As mentioned above, the Supreme Court has upheld a verdict of the Karnataka High Court in the ESIC v/s JMD Fashions – MFA 1089/2001 case, that outside establishments are not immediate employers under Section 2(13) of the ESI Act, and so, if jobs are done outside by contract labour, and where there is no element of supervision by the principal employers on such contract labour, the principal labour will not be liable for ESI contribution on job work charges paid to such contract labour.
ESI Contribution on Casual Contractors
The Bombay High Court, relying on Supreme Court judgments, has held that casual contractors like plumbers, electricians, air conditioner repairers, computer repairers, TV repairers, etc who are engaged for temporary repair work will not be coverable under the ESI Act (ESIC vs RK Furniture & Another – 2007 LLR 14).
This should come as a great relief to employers who have for a number of years faced the ordeal of meeting demands for contributions on casual contract works, after every ESI inspection. Apart from the monetary aspect, it was a time consuming and expensive task to cull out from accounting records, payments made for such sporadic engagement of technicians and contractors, and pay ESI contributions.
Wage Limit: ESI Raised Wage Limit to Rs 21,000 from Rs 15,000 with effect from 01st Jan 2017
For the first time, the rates of employer’s and employee’s contribution for the initial twenty-four months from the date from the date of implementation shall be as under:-
(a) Employer’s contribution – 3%
(b) Employee’s contribution – 1%.
ESIC has changed the date for filing ESI contribution to 15th of every month from 21st of a month. From June 2017
ESI cashless treatment for emergencies re-introduced
According to the latest news, ESI cashless treatment for emergencies has been re-introduced.
To facilitate hassle-free, timely and cashless delivery of medical services to ESI beneficiaries, the ESI has issued instructions to hospitals with which they have tie-ups to allow direct admission.
In case of dire need like road traffic accident, employment injury and other life-threatening emergencies, ESI beneficiary may seek direct admission at tie—up the hospital for cashless treatment Tie— up hospital will immediately start the stabilizing treatment and will seek permission join respective SMC office through e-mail for continuing flirter treatment. Upon receiving e-mail from tie-up hospital, SMC will constitute a Committee/designate an official at ESIC hospital/office nearest to tie up the hospital. This Committee/official will visit tie-up hospital by same day/next working day to verify and identify emergency and other details of the patient so as to authenticate continuation of treatment. Once it is verified as genuine, the referral letter may be issued to tie—up the hospital for cashless treatment.
Wages for piece rated but monthly paid employee’s wages calculation
In the case of piece rated but monthly paid employees their total wages in the first month of the contribution period shall be the criterion for determining their status and that if the contribution period does not start on the first day of a calendar month, total earning during a period of 30 days from the beginning of the contribution period will be the basis for determining the monthly earning of an employee, is perfectly
Under One IP- Two Dispensaries scheme ESIC