« From the Courts » Open DEMAT Account in 24 hrs  Income Tax Addition Made Towards Unsubstantiated Share Capital Is Eligible For Section 80-IC Deduction: Delhi High Court «  Income tax (11th Amendment) Rules prescribing changes to... CA firm is not a shop under Bombay Shops and Establishments... » ESI payable to employees having wages upto Rs.10,000 per month October, 11th 2006 This is to inform you that the Central Government has issued a notification dated 22nd September, 2006, revising the wage ceiling for coverage of employees under the ESI Corporation Act from Rs.7,500 p.m. to Rs.10,000 p.m. The scheme is effective from 1st October, 2006 and as such all employers are required to send a list of such employees to the appropriate ESIC branch office alongwith declaration form who fall in the category of Rs.7,500 to Rs.10,000 p.m. The limit again revised to Rs. 10000/- w.e.f. 1-10-2006. Copy of the notification is given below for your kind reference. EMPLOYEES' STATE INSURANCE CORPORATION HQRS. OFFICE: PANCHDEEP BHAWAN COMRADE INDERAJIT GUPTA MARG NEW DELHI-110002 Website: www.esic.org.in Website: http://esic.nic.in No.X-14/11/1/2004-P&D 29.09.2006 To The Regional Director/Jt. Director I/c Employees' State Insurance Corporation, Regional Office/SRO/Divisional Office, ___________________________ ___________________________ Subject: Enhancement of Wage Ceiling for coverage under the ESI Act, 1948. Sir, In pursuance of the decision taken by the ESI Corporation at its 136th meeting held on 15.06.2006, the wage ceiling for coverage of employees under the Act from Rs.7, 500/- to Rs10, 000/-, the Central Govt. has issued a final notification which has been published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-Sec.(i) dated 22.09.2006 for coverage under the Act from Rs.7, 500/- to Rs10, 000/-, per month and consequential addition of 10 more slabs of standard benefit rates. A copy of the Gazette, containing Notification no. S-38025/9/2006-SS-I dated 22.09.2006 amending Rule 50 and 54 of ESI (Central) Rules, 1950, which will come into force w.e.f. 01.10.2006 is enclosed. The salient features of the notification are as under a) With the amendment in Rule 50, the wage ceiling for coverage under the ESI Act has been enhanced from Rs.7, 500/- to Rs10, 000/-, per month w.e.f. 1.10.2006. Accordingly, all employees whose salary, excluding remuneration for over-time work, exceeds Rs.7,500/- but does not exceed Rs.10,000/- per month would become coverable under the ESI Act w.e.f. 1.10.2006 . b) As a result of amendment in Rule 54, ten more slabs of daily standard benefit rates have been added in the table of standard benefit rates under Rule 54 of ESI (Central) Rules, 1950. The revised table effective from 1.10.2006 will be as under TABLE Sl.No. Group of employees whose average daily wages are Standard Benefit Rate Rs. 1. Below Rs.28 14 or full average daily wage whichever is less. 2. Rs.28 and above but below Rs.32 16 3. Rs.32 and above but below Rs.36 18 4. Rs.36 and above but below Rs.40 20 5. Rs.40 and above but below Rs.48 24 6. Rs.48 and above but below Rs.56 28 7. Rs.56 and above but below Rs.60 30 8. Rs.60 and above but below Rs.64 32 9. Rs.64 and above but below Rs.72 36 10. Rs.72 and above but below Rs.76 38 11. Rs.76 and above but below Rs.80 40 12. Rs.80 and above but below Rs.88 44 13. Rs.88 and above but below Rs.96 48 14. Rs.96 and above but below Rs.106 53 15. Rs.106 and above but below Rs.116 58 16. Rs.116 and above but below Rs.126 63 17. Rs.126 and above but below Rs.136 68 18. Rs.136 and above but below Rs.146 73 19. Rs.146 and above but below Rs.156 78 20. Rs.156 and above but below Rs.166 83 21. Rs.166 and above but below Rs.176 88 22. Rs.176 and above but below Rs.186 93 23. Rs.186 and above but below Rs.196 98 24. Rs.196 and above but below Rs.206 103 25. Rs.206 and above but below Rs.216 108 26. Rs.216 and above but below Rs.226 113 27. Rs.226 and above but below Rs.236 118 28. Rs.236 and above but below Rs.250 125 29. Rs.250 and above but below Rs.260 130 30. Rs.260 and above but below Rs.270 135 31. Rs.270 and above but below Rs.280 140 32. Rs.280 and above but below Rs.290 145 33. Rs.290 and above but below Rs.300 150 34. Rs.300 and above but below Rs.310 155 35. Rs.310 and above but below Rs.320 160 36. Rs.320 and above but below Rs330 165 37. Rs.330 and above but below Rs.340 170 38. Rs.340 and above but below Rs.350 175 39. Rs.350 and above but below Rs.360 180 40. Rs.360 and above but below Rs.370 185 41. Rs.370 and above but below Rs.380 190 42. Rs.380 and above 195 2. In the light of the aforesaid amendments, the following steps shall be taken urgently for registration of additional employees who will become coverable under the Act w.e.f. 1.10.2006 consequent upon enhancement in the wage ceiling - a) All the employers may be requested to send a list of all such coverable employees in the enclosed Performa to the appropriate Branch Office (in quadruplicate) along with their declaration forms. A copy of the list may be endorsed to Regional Director/Joint Director, In-charge of Sub-Regional Office/Divisional Offices (Policy Section) for record. b) In case of workers who were earlier covered under the scheme and had gone out of coverage on crossing the wage ceiling, the employers may be requested to indicate employee's old insurance numbers in the list and also to enclose their old Identity Cards, if available, for re-validation. c) On receipt of the lists of such coverable employees along with their declaration forms/old Identity cards, the Branch Office may issue Temporary Identity Cards (TICs) immediately across the counter and re-validate the old Identity Cards by affixing a rubber stamp marking "Re-validated on re-entry in insurable employment - w.e.f. 1.10.2006". Where old Identity cards are not available, duplicate identity cards may be issued free of cost. d) The Branch Managers will take necessary action to issue other documents on priority basis within a period of 7 days from the date of receipt of documents from the employers. e) One copy of the lists referred to in (a) above may be sent to the appropriate dispensary/AMO to ensure that medical benefit is provided to the newly covered employees and members of their families without insisting for ESIC-37/ESIC-86. The AMO ESI Scheme will make an allotment of newly covered/re-entered employees to area Insurance medical Practitioners. Necessary instructions may be issued to all Branch Managers, Administrative Medical Officers / Directors of ESI (Medical) Scheme/ Panel Doctors and State Governments. Enhancement in the wage ceiling may also be brought to the notice of the employers and their organizations through letters, advertisements and news items in the national and local Dailies and through circulars. The Workers' Organizations may also be informed about enhancement in the wage ceiling. A monthly report indicating the additional employees fresh and re-covered due to enhancement of wage ceiling may be sent to the undersigned in a Performa enclosed so as to reach by 20 th of the following month positively. The first such statement should reach Hqrs. Office by 20th November, 2006. Receipt of this letter may please be acknowledged. Yours faithfully, (K. Mishra) DIRECTOR Encl: As Above. The Branch Manager ____________________ ____________________ Sub:- Increase in the wage ceiling from Rs.7, 500/- to Rs.10, 000/- per month for coverage w.e.f. 1.10.2006. I hereby declare that the under-mentioned employees working in the aforesaid factory/establishment, including employees of the contractor(s), have been brought under the ambit of the ESI Act, 1948 (as amended) consequent upon enhancement of wage ceiling for coverage from Rs.7, 500/- to Rs.10, 000/- per month w.e.f. 1.10.2006 S. No. Name Ins. No. if earlier covered under the Act Branch Office to which attached (write N.A. in r/o newly covered employees) Total amount of monthly salary / wages excluding OTA paid / payable from 1.10.2006 Name of ESI Dispensary / Hospital Re-marks The declaration forms of the newly coverable and identity cards of re-entered employees are enclosed for allotment of Insurance number/revalidation of Old Identity Cards/issuance of Duplicate Identity Cards. Certified that the above particulars are correct in every respect and no employee including part-time/daily rated/contractors' employees have been left out. Date : Place : Name, Designation and signature of Principal Employer M/s.__________________________ ENCLOSORUES TO HQRS. OFFICE LETTER NO. X-14/11/1/2004-P&D DATED 29.09.2006 Regional Office/Sub-Regional Office/Divisional Office ESI Corporation_________________ No.