Tag Archives: it salaries
Reasons for Leaving a Higher Paying Job for a Lower One
Career Change
If you decide that you no longer want to stay in the career field you are in, your next step is to make a career change. If you have no experience in the field you are changing to, you will likely experience a drop in compensation. For instance, a successful realtor may be tired of the fierce competition and the long hours in her field and decide to become a teacher. The realtor may experience a significant drop in salary when entering the teaching profession, because teacher salary scales are often based on experience.
Demotion
Unfortunately, sometimes employers decide to demote employees based on performance or other factors. If you are not in a position to move, such as if you have a spouse with a well-paying job or a family that you can’t uproot easily, you may have to accept the demotion at the lower pay rate. That doesn’t mean that you have to stay in the job forever, of course. You can keep the job while you work towards finding a better opportunity without a total loss of income.
Benefits and Perks
Sometimes leaving a higher-paying job for one that pays less makes sense if the benefits and perks outweigh the pay. For instance, if you work in the restaurant business as a general manager with a healthy salary, but you work 80 to 90 hours per week and have no health insurance or retirement benefits, you may decide to take a lower paying job that offers you health insurance, a 401(k) and a 40-hour work week. In many cases, the lower salary works out to a higher hourly rate. Working less with more benefits may be worth more to you than the extra money each year.
Moving
If you move from an area that has a high cost of living to one that has a much lower cost of living, you can afford to take a lower-paying job. Your money will go further because things such as housing, groceries, transportation, healthcare and utilities won’t cost as much. Use cost of living calculator to estimate how much your current salary is worth in another city or state. The calculations will give you a good idea of whether you can live your expected lifestyle on a lower salary in another location.
Happiness
Your well-paying job may not be worth it if you are unhappy and stressed and your current job is taking a toll on you and those around you. A higher salary can’t make up for the loss of quality time spent with children and loved ones, pursuing hobbies, or simply sleeping right and exercising to keep up your health.
You Need a Job
When a company you work for closes it doors or downsizes, you can find yourself out of a job. Depending on the industry in which you work and the area in which you live, you may have to take whatever job or jobs you can get to pay you bills. There may not be any available jobs in your industry unless you move to another location, which may not be a feasible solution at the time.
Ref: http://work.chron.com/reasons-leaving-higher-paying-job-lower-one-1053.html
How to Negotiate a Job Offer for an Internal Promotion
Step 1
Tell the person extending the job offer that you appreciate the opportunity to move forward in the company and explore a greater position of authority. Before accepting the promotion, ask to discuss the specifics of the job, including compensation and job duties and functions. Get the details in writing and ask for time to review the document.
Step 2
Conduct some background research into the role you’re being offered. Because of your existing job with the company, you may have an idea of what the position pays. Dig a little deeper and find the going rate for that role in your industry. You can find statistics through the U.S. Labor Department that will help to prepare you for negotiations.
Step 3
Meet with the individual offering the promotion and ask questions about the new position. This will help you clarify what is expected of you. From there, begin negotiations for any missing elements you believe you are entitled to. For example: “Based on the overview of job functions, I believe I would be better able to perform in this role if I had a part-time assistant,” or, “Because of the extensive travel involved with this job, I’d like to request an expense account and use of a company car.”
Step 4
Negotiate any discrepancies in the salary package being offered. You can use any number of arguments to your advantage, including your existing knowledge of the company, your education or experience, or inside information. For example: “It’s my understanding that the last person in this role earned a significantly higher salary. Can you tell me why there is such a discrepancy in what you’re offering me?” Or, “The starting salary for this position looks like it’s about 10 percent below national industry standards. Would you be open to an increase?”
Step 5
Decide in advance of what you will and won’t accept. Take into consideration whether your existing job will still be available if you turn down the promotion, or if there will be awkward tension if you refuse the role.
Step 6
Let the employer know of your final decision as soon as possible.
Ref:http://work.chron.com/negotiate-job-offer-internal-promotion-13231.html
How to Negotiate Salary Without Losing a Job Offer
Research
Before you attempt to negotiate a higher salary, research the average salary range for the position so that you’re well-informed during the discussion. Check salary ranges Labor Statistics website, research annual reports by industry and use reference materials available at libraries, such as the “Business Directory.” Because cost-of-living factors and geographical locations affect salaries, compare statistics that are representative of your area. Consider your years of experience in the industry, academic degrees and job-related accomplishments to help you come up with a counteroffer that’s fair and reasonable.
Professional Enthusiasm
During the negotiation process, make sure you discuss your salary needs with professional enthusiasm. Avoid criticizing the original offer, demanding better compensation or using a “pity party” mentality to manipulate the situation. The goal is to convey confidence and earnestly seek a compensation package that meets your skill level, years of experience and financial needs. Keep a positive attitude and don’t allow the negotiation process to become confrontational. If the company isn’t sincerely interested in you, they wouldn’t have offered you the job in the first place.
Bargaining Room
To make sure you don’t lose the job offer, express your willingness to give-and-take, so the employer doesn’t think you’re only interested if all of your expectations are met. According to the University of Minnesota School of Public Health, an effective negotiation strategy is to ask for a few perks you can do without. As a result, you can opt to give up those benefits in lieu of a higher salary. For example, you might cover your own relocation expenses, give up stock options for a year or forgo a company car to show your goodwill. This bargaining strategy seeks to find a compromise so both sides feel like they got a good deal.
Considerations
Several negotiating guidelines might help you strike a fair deal, without compromising the initial job offer. The Graduate College at the University of Illinois recommends negotiating salary only after a company has given you a formal offer. You need to make sure that the company is fully invested in you, so there’s no competition from other candidates. Don’t negotiate a higher salary unless you’re ready to commit to the job; the employer might agree to your salary request on the spot. Once salary negotiations have ended, don’t bring up other requests or demands that might negatively affect your standing as a new employee.
Ref:http://work.chron.com/negotiate-salary-losing-job-offer-8991.html
ESI-Wages
50 Wage heads & will highlight which Wage Heads should take in to account for ESI calculation & which should not.
1) WASHING ALLOWANCE:
It is a sum paid to defray special expenses entailed by the nature of employment and as such this amount does not amount to wages.
(In lieu of old instructions issued vide Memo No.Ins.III/2/1/65 dt. 8.2.1967)
2) SUSPENSION ALLOWANCE/SUBSISTENCE ALLOWANCE
During the suspension period the employee is not allowed to actually work and he is not given full remuneration but the permissible subsistence allowance is paid to the employee by way of remuneration for remaining attached to the services of the employer as per the relevant service regulations governing his contract of service, therefore, the subsistence allowance is part of wage as defined under Sec.2(22) of the ESI Act and consequently on the amount of subsistence allowance paid to the suspended employee, contribution is payable.
Supreme Court has also held in the case of RD, ESIC Vs./s.Popular Automobiles etc.in its judgment dt. 29.9.97 in Civil appeal no.3850 of 1993 that ‘suspension/subsistence allowance is wage and contribution is payable under Sec.2 (22) on the said amount’.
(In lieu of earlier instructions were issued vide Memo No.3(2)-1/67 dt. 3.6.67 & letter No.Ins.III(2)-2/71 dt. 10.8.1971)
3) OVERTIME ALLOWANCE
In the case of the employer as and when the employer finds the need to have work done expeditiously, in addition to the normal work during the course of the working hours, the employer offers to the employee to do the overtime work after the working hours. When employee does overtime work it amounts to the acceptance for the same, hence there emerges concluded implied contract between the employer and the employee. Both the remuneration received during the working hours and overtime constitutes a composite wage and thereby it is a wage within the meaning of Sec.2 (22) of the ESI Act. Therefore, the contribution is payable on the overtime allowance. However, overtime allowances will be considered as wage for the purpose of charging the contribution only and will not be considered for the purpose of the coverage of the employee under the Scheme.
The same view was held by the Supreme Court in its judgement delivered on 6.11.96 in the case of Indian Drugs & Pharmaceuticals Ltd. Vs. ESIC, in Civil Appeal No.2777 of 1980.
(Old instructions issued vide memo No.3-1(2)/3(1)/68 dt. 31.5.68).
ANNUAL BONUS:
Bonus paid to the employees could not be treated as wage for the purpose of charging of contribution under Sec.2(22), provided the periodicity of the payment is more than 2 months. The said issue was also considered in the meeting of the ESI Corporation held on 19.12.1968 and the Corporation agreed to the recommendations of the Standing Committee that bonus may not be treated as wage. Hence no contribution is payable on annual Bonus.
(Earlier instructions were issued vide memo No.Ins.III/2(2)-2/67 dt. 8.2.1967).
INCENTIVE BONUS:
As per the decision of the Supreme Court delivered on 8.3.2000 in the case of M/s.Whirlpool India Ltd. Vs. ESIC in civil appeal No.1903 of 2000, additional remuneration to become wages has to be paid at intervals not exceeding two months as distinguished from being payable. Thus, there has to be actual payment and the payment of production incentive does not fall either under the 1st part or last part of the definition of the term wages as defined in Sec.2(22) of the Act, hence no contribution is payable on the incentive bonus, provided the periodicity of payment is more than 2 months.
(Earlier instructions were issued by this office vide Memo No.T-11/13/53/19-84-Ins.IV dt. 19.9.84, Memo No.Ins.III-2(2)/2/69 dt,. 26.12.73, Memo No.T-11/13/54/18/82-Ins.IV dt. 14.7.82 & Memo No.D/Ins.5(5)/68 dt. 18.9.88.)
PRODUCTION BONUS:
Production Bonus like incentive bonus is paid to the workers as additional remuneration and hence like incentive bonus such additional remuneration in order to become wages has to be paid at intervals not exceeding 2 months as distinguished from being payable. Thus, there has to be actual payment and hence no contribution is payable, provided periodicity of the payment is more than 2 months.
(Earlier instructions issued vide letter dated 4(2)/13/74-Ins.IV dated 2.9.85)
INAM/EX-GRATIA PAYMENT:
Inam represents a payment made by the employer to any employee as a reward for the services rendered by him for which he is/was not under obligation to render the same under the contract of service which is expressed or implied but does not include the payment which have been made to an employee in fulfillment of contract of service. This may include exgratia payment.
Where Inam is being paid for special skill or higher responsibilities/additional duties, it may be taken as remuneration and contribution is payable.
Where the employer has introduced the scheme of Inam but according to terms and conditions the employer has no right to withdraw it or revise it, the same may be treated as wages and contribution is payable.
Where the employer has introduced the scheme of Inam and he has right to revise or withdraw it at his discretion, the payment of Inam under such scheme may not be treated as wages and contribution is not payable provided the payment is made at an interval exceeding two months..
Where there is no scheme of Inam in writing but still employer might be making payment under the head Inam on the basis of some understanding between the parties, in such cases, the nature of payment and its periodicity may be ascertained and whether payment of Inam is an exgratia payment which is not covered by the contract of service. In case the periodicity is more than 2 months, no contribution may be charged.
(Last instructions were issued vide letter No.D-Ins.5(5)/68 dated 21.2.1975).
WAGES PAID DURING LAYOFF:
During the period of layoff though the employee is not given actual work and is also not given full remuneration but certain wages are paid to the employee by way of remuneration for remaining attached to the factory/establishment of the employer, therefore, such payments paid for the period of layoff are also wages for the purpose of Sec.2(22) of the ESI Act and hence contribution is payable on such payments.
(Earlier instructions were issued in 1968).
ANNUAL COMMISSION
Sales Commission would fall within the 3rd category of wages as defined underthe Act as additional remuneration and there has to be actual payment as the word used is paid and not payable, at intervals not exceeding two months. The question as to why the period of 2 months is fixed was debated in Supreme court in the case of Handloom House, Ernakulam Vs. RD,ESIC in Civil Appeal No.2521 of 1999 when it was held that no employer shall have the permission to draw the payment of contribution on the premise that annual payments have to be work out. Normally, the wage period is one month, but the Parliament would have thought that such “wage period” may be extended a little more but no employer shall make it longer than two months. This could be the reason for fixing a period of two months as the maximum period for counting the additional remuneration has to make it part of ‘wage’ under the Act. Therefore, the annual commission is excluded from the definition of the wages and hence no contribution is payable on the annual commission.
(Earlier instructions were issued vide Hqrs.letter No. Ins.III(2)-2/71 dated 10.8.71).
HOUSE RENT ALLOWANCE
House Rent Allowance is wage in cases where it is being paid. Notional amount of house rent can not be presumed as wages for deciding the coverage. In cases where an employee is being paid house rent allowance, the same will be included both for coverage and contribution. In cases where the staff quarters have been allotted the amount of salary and wages paid will count for coverage and contribution and no notional house rent allowance is to be presumed in such cases.
In the cases of Braithawait & Co. Vs. ESIC and M/s.Harihar Polyfibres Vs. ESIC, Bangalore, Supreme Court has also held that house rent allowance is a ‘wage’ under Sec.2(22) of the ESI Act.
(Earlier instructions were issued vide memo No.T-11/13/11/15-Ins.III dt. 28.9.75, No.Ins.III(2)/15/15/74-Ins.Desk.I dated Dec.,76, No.T-11/13/53/19-84/Ins.IV dt. 19.9.84 & No.D.Ins.II/11/3087/303 dated 1.3.1985).
NIGHT SHIFT/HEAT/GAS & DUST ALLOWANCE:
It is an additional remuneration paid to the employee for performing duty atnight time during the hours of darkness. This amount is paid by way of incentive under the scheme of settlement entered into between the Management and its workmen and hence are wages within the meaning of Sec.2(22) of the ESI Act. This view was observed by the Full Bench of Karnataka High Court in the case of NGEF Ltd. Vs. Dy.Regional Director, ESIC, Bangalore. Supreme Court in the case of M/s.Harihar Polyfibers Vs. RD ESIC, Bangalore has also held the same view. Hence, Night Shift Allowance, Heat, Gas & Dust allowance are wages under Sec.2(22) of the ESI Act and contribution is payable on the said amount paid by the employer to the employees.
(Earlier instructions were issued vide Memo No.T-11/13/53/19/84-Ins.IV dated 19.9.94).
CONVEYANCE ALLOWANCE
Conveyance allowance is paid to the employee to compensate the expenses incurred by the employees on travelling etc. The travelling allowance or value of any travelling concession is also being paid to the employees in the nature of conveyance allowance, which is neither wages for the purpose of coverage of employees under Sec.2(9), nor it is treated as wages for the payment of contribution under Section 2(22) of the ESI Act.
In the case M/s.Hyderabad Asbestos Cement Products Vs. ESIC, Punjab & Haryana High Court, Chandigarh as well in the case of M/s.Harihar Polyfibres, the Supreme Court have held that conveyance allowance is not wage under Section 2(22) of the ESI Act.
(Earlier instructions were issued by this office vide No.P.11/13/97-Ins.IV dated 27.1.97.)
SERVICE CHARGES
Service charges are collected by management of the hotel on behalf of their employees in lieu of direct tips and the same is paid to their employees at a later date.
Such amount collected as ‘service charges’ will not constitute wages under Sec.2(22) of the ESI Act. In the case of ESIC Vs. M/s.Rambagh Palace Hotel, Jaipur, the High Court of Jaipur has held that ‘service charges’ are not wages under Section 2(22) of the ESI Act. This verdict of the High Court of Jaipur was accepted in the ESIC and hence no contribution is payable on ‘service charges.
(Earlier instructions were issued vide letter No.P-12/11/4/79-Ins.Desk.I dt. 18.9.79)
MEDICAL ALLOWANCE
The employees working in factories/establishments are being provided medical services in kind by the employer but in certain factories/establishments instead of providing medical services in kind, the amount spent by the employees on medical care is reimbursed while in some other organisations, employees are being paid monthly cash allowance in lieu of medical aid/reimbursement of medical expenses. Where such payments are made by the employer in lieu of the medical benefit, the same are to be treated as wages under Sec.2(22) of the ESI Act and the contribution is chargeable.
(Earlier instruction were issued vide letter No.Ins.5(5)/68-Ins.III dt. 21.8.71 & Ins.III/2(2)2/68 dated 24.6.71)
NEWSPAPER ALLOWANCE
In certain factories/establishments the employees are reimbursed the cost of Newspapers while in some other factories/establishments the employees are paid monthly newspapers allowance instead of reimbursement of the cost of the Newspapers. Where the amount is being paid regularly to the employees by the employer as Newspapers allowance the same will be treated as wages under Sec.2(22) of the ESI Act and the contribution is chargeable. However, where the cost of Newspapers is reimbursed to the employees, no contribution is to be charged on such payments.
EDUCATION ALLOWANCE:
Employees are being paid monthly Education allowance for the children studying in the Schools/Colleges. Where such education allowance is being paid monthly, the same is to be considered as wages under Sec.2(22) of the ESI Act and the contribution is chargeable on the said amount.
However, in such cases where instead of paying the education allowance on monthly basis, the amount spent as fee is reimbursed to the employees and booked under education allowance, in such cases no contribution is payable.
DRIVERS’ ALLOWANCE
In some of the factories/establishments the officers employed as employees are being paid drivers’ allowance per month. This allowance is being paid to enable the officers to appoint a driver at their own level and such drivers employed are not being paid salary directly by the factories/establishments. Where such allowance is being paid to the employees and the drivers are not engaged by the employees, in such event the allowance paid as such will be considered as wage under Section 2(22) of the ESI Act and contribution will be chargeable provided the employee is coverable under the Scheme..
However, where the services of the drivers are being utilised, in such event the drivers so engaged will be covered as employee and contribution will be payable on the amount paid to the drivers as salary and booked in the ledgers of the employer under the heading ‘Drivers’ Allowance’.
FOOD/MILK/TIFFIN/LUNCH ALLOWANCE:
Each case of payment of Food, Milk, Tiffin and Lunch Allowance has to be examined on its merits depending on the following conditions under which the allowance is payable:-
Tiffin/Food/Milk/Lunch Allowance paid in cash at a fixed rate irrespective of whether the person is absent or on authorised leave etc. may be treated as wages.
Tiffin/Food/Milk/Lunch allowance paid in cash with deduction for leave or absence etc. may not be treated as wages.
Tiffin/Food/Milk/Lunch allowance paid in kind i.e. canteen subsidy/food subsidy etc. may not be treated as wages.
(Earlier instructions were issued vide letter No.P-11/13/97-Ins.IV dated 2.2.1999)
GAZETTED ALLOWANCE
Certain factories/establishments are paying gazetted allowance to its employees in lieu of duties performed by them on gazetted holidays. Such gazetted allowance is not wage for the purpose of Sec.2(9) of the ESI Act. However, it will be wage for the purpose of Sec.2(22) of the ESI Act and the contribution are to be recovered on such payments.
WAGES AND DEARNESS ALLOWANCE FOR UNSUBSTITUTED HOLIDAYS:
Such wages and dearness allowance paid to the employees for the unsubstituted holidays are to be treated as wages under Sec.2(22) of the Esi Act and the contribution is payable. High Court of Gujarat in the case of ESIC Vs. New Assarw Manufacturing Co.Ltd. held the same view.
EXGRATIA PAYMENT DURING STRIKE FOR TRAVELLING EXPENSES
Like conveyance allowance if any exgratia payment is made during the period of strike to some of the employees to incur certain travelling expenses such amount will neither be considered as wage under Sec.2(9) nor under Sec.2(22) of the ESI Act and no contribution is payable on such amount. High Court of Bombay in the case of ESIC Vs. Willman (India) (P) Ltd. in case No.210 of 1976, held the same view.
INTERIM RELIEF:
Interim relief paid to the employees is normally paid when either the wage is under revision or when the payment of Dearness Allowance is delayed due to any reason. Whatsoever may be the case, if the interim relief is paid to the employees by any employer, the same will amount the wages within the meaning of Sec.2(22) of the ESI Act and contribution is payable thereon.
SAVING SCHEME
Certain factories/establishments are contributing towards the saving scheme for the welfare of the workers. Such amount paid by the employer as his contribution to the saving scheme, will not constitute wages under Sec.2(22) of the ESI Act and the contribution is not payable.
(Earlier instructions were issued vide Memo No.P-12/11/4/77-Ins.IV dt. 15.11.80)
ATTENDANCE BONUS
It is a special allowance being paid by certain employers to their employees to discourage the workers from absenting from the job. Any amount paid by the employer to its employees as Attendance Bonus will constitute wages under Sec.2(22) of the ESI Act and the same opinion was held by Bombay High court in the case of ESIC Vs. Indian Dyestuff Industries Ltd.. However, the periodicity aspect has to be kept in mind. In case the periodicity is more than 2 months, the same will not constitute wages and no contribution will be payable as in the case of incentive bonus.
PAYMENT MADE TO RICKSHAW PULLERS,HATHRAIRY PULLERS AND TRUCK OPERATORS (INCLUDING LOADING & UNLOADING CHARGES WHEN THE LOADERS/UNLOADERS ARE THE EMPLOYEES OF THE TRUCK OPERATORS:
Rickshaw pullers, Hathrairy pullers and Truck Operators (who bring labour with them) no contribution is payable on the amount paid by the employer if the amount paid is lumpsum amount including loading/un-loading charges and no separate wages are paid by the employer.
Similar view was held by Bombay Division Bench in 1990 in the case of Raisaheb Tekchand, Mohate Mills Vs. R.D. ESIC.
HAMALS/COOLIES EMPLOYED AT A PARTIULAR TIME
Where Hamals & Coolies are employed at a particular place and a particular time, outside the premises of the factory/establishment to perform a specific job on the spot in such cases no contribution is payable on the amount paid to such Coolies/Hamals, however the contribution is payable on the amount paid to the coolies and hamals for services rendered within the premises of the employer.
Bombay High Court in the case of Parley Bottling Co.Ltd. VS. ESIC,Bombay
1989 and Supreme Court in the case of ESIC VS.Premier Clay Products, have held this view.
SHORT PERIOD CONTRACT FOR SERVICE – ELECTRICIAN, CARPENTERS, MECHANICS, PLUMBERS ETC./REPAIR WORK DONE ON SHOP
In such cases also contribution is payable on the amount paid by the Employer if the services are rendered within the premises. This view was also held by Punjab and Haryana High Court vide its judgement dated 29.3.84 in the case of Modern Equipment Vs. ESIC in Civil Appeal No.3218 of 1989.
EXPENDITURE ON SERVICING OF MACHINES
No contribution is payable on the servicing of machines where the job awarded is to the Engineer and instead of contract of service, there is a contract for service for servicing of machines.
EXPENDITURE ON ANNUAL/PERIODICAL SERVICE CONTRACT
In the factories/establishments certain amount is being paid by the employer to the supplier of machines or to the firms of repute for the annual/periodical servicing of the machines and for such purposes the contract is awarded. In such cases no contribution is payable on the amount paid for annual/periodical service contracts.
COMMISSION TO DEALERS/AGENTS:
Where dealers/agents are appointed by the employers but no regular wages are paid and it is not obligatory on the part of such dealers/agents to attend to the factories/ establishments and they are paid commission only on the quantum of sales, in such cases the amount paid by the employer as commission/dealership does not constitute wage under Section 2(22) of the ESI Act and hence no contribution is payable.
SERVICE CONTRACT
Amount paid to an organisation for maintenance of Machinery/Equipments as part of service contract will not attract ESI contribution.
PAYMENT MADE TO LABOUR CONSULTANTS, LAWYERS, ENGINEERS, COUNSELS, CHARTERED ACCOUNTANTS:
The amount paid by the employer to labour consultants, lawyers, engineers, counsels, chartered accountants does not constitute wage as per provisions under Section 2(22) of the ESI Act and hence no contribution is payable.
The following items will form part of the wage both under Section 2(9) i.e for considering the employee for the purpose of coverage and Section 2(22) of the ESI Act for the purpose of charging of contribution:-
Matinee allowance which is being paid to employees in Cinema Houses.
Shift allowance paid to employees who work on shift duty at odd shifts.
Location allowance paid, in addition to Dearness Allowance to meet the high house rent.
Compensatory allowance.
Cash handling allowance paid to Cashier.
Supervisory Allowance.
Additional pay paid to training staff.
Charge allowance
Steno/Typist allowance
Plant allowance
Honorarium for looking after the hospital/dispensary
Computer allowance
Gestetner/Photocopier/Printer allowance
Personnel/Special allowance
Machine allowance
Convassing allowance
First-aid allowance
Personnel allowance – Pay over and above the basic wage and Dearness allowance for skill, efficiency or past good records.
Area allowance – given to employees living in a particular area to meet the high cost of living in that area.
Exgratia payment if payment is made within an interval of two months.
The following items will not form part of the wage either under Section 2(9) or under Section 2(22) of the ESI Act:-
Payment made on account of un-availed leave at the time of discharge.
Commission on advertisement secured for Newspapers, if not paid to the regular employee.
Fuel allowance/Petrol allowance
Entertainment allowance
Shoes allowance
Payment made on account of gratuity on discharge/retirement.
Payment made on encashment of leave..
Ref- http://www.yourhrworld.com/formats/search/manpower-planning-template-excel/
About ESI
Coverage – Act is applicable to non-seasonal factories using power and employing 10 or more persons and non-power using factories 20 or more persons.
Earning wages limit- Gross Salary Rs. 15,000/- w. e. f. 01.04.2006.
Contribution : By Employer @ 4.75%
By Employee @ 1.75%
Registration and number allotment– Duly filled Form-01 Form-01 Employer’s Registration Form
For Employees Form 01 & Declaration Form no. 03 within 10 days of joining, kept one copy of Form-3 for record. Form-3 Return of Declaration Form
Identity Cards : Form 4 the ESI Office will issue the same.
Register for ESI Record : Every employer shall maintain a register in Form-6 which is prescribed in rule-32. Form-6 Register of Employees
Contribution periods 1st : 1st April to 30th September
2nd : 1st October to 31st March
Challans Deposit : Deposit in bank by 21st of every month.
Returns of contribution : On Form no. 5 in quadruplicate with Six Challans within or before 11 May & 12 Nov of every year mandatory certified by the Chartered Accountant if the member are 40 nos. or more w. e f. 01.04.2008.
Special Provision :
(i) Within 42 days of the termination of the contribution period to which it related.
(ii) Within 21 days of the date of permanent closure of the factory.
(iii) Within 7 days of the date f receipt of requisition in that behalf from the appropriate office.
Notice of Accident : As soon as practicable after the accident.
Maintenance of Accident Book : Form-11 any injury to an insured person. Form-11 Accident Book
Report to Accident :
- Immediately if the injury is serious. i.e. is likely to be cause to death or permanent disablement or loss of a member.
- In any other case within 24 hours after the receipt of the notice or when the accident came to his notice or to his foremen or other official under whose supervision the insured person was employed at the time of accident.
- If the injury result in the death at the place of employment, the report to IMO and Local Office should be sent through a special messenger.
Every Employer shall send a report in Form-16 to the nearest Local Office and to the nearestInsurance Medical Officer in triplicate i.e. Form-16 Claim for Periodical Payment of DB
(1) One deposit to Local Office
(2) Second deposit to IMO
(3) Kept for their records.
Benefit Period : If the person joined insurable employment for the first time say 5th January, but his contribution period will be 5th Jan to 31st March and his corresponding first benefit will be from 5thOctober to 31st December.
| Sr. No. | To be deemed as a wages | Not to be deemed as a wages |
|
1 |
Basic Allowance | Contribution paid by employer on any pension / PF or ESI |
|
2 |
Dearness Allowance | Daily Allowance paid for period spent on tour |
|
3 |
House Rent Allowance | Encashment of leaves |
|
4 |
City Compensatory Allowance | Washing Allowance |
|
5 |
OT Wages | Amount towards reimbursement for duty related journey |
|
6 |
Production Incentive | Gratuity payable on discharge |
|
7 |
Payment for day of rest | Benefit paid under ESI |
|
8 |
Night Shift Allowance | Payment of Inam which does not form part of the terms of employment |
|
9 |
Meal / Food Allowance | |
|
10 |
Suspension Allowance | |
|
11 |
Conveyance Allowance |
Damages or contribution or any other amount due but not paid in time-
| Sr. No. | Period of delay | Maximum rate of damages in % per annum of the amount due |
|
1 |
Less than 2 months |
5 % |
|
2 |
Grater than 2 but less than 4 months |
10 % |
|
3 |
Grater than 4 but less than 6 months |
15 % |
|
4 |
Grater than 6 months |
25 % |
Penalties : Different punishment have been prescribed for different types of offences in terms of section 85 :
(i) Six month imprisonment and fine Rs. 5000/-
(ii) One year imprisonment and fine
And under section 85-A
(i) Five year imprisonment and not less than 2 years
And under section 85-C(2) of the ESI Act which are self explanatory
Besides these provisions, action also can be taken under section 406 of the IPC in case where an employer deduct contribution from the wages of his employees but does not pay the same to the corporation which amounts to criminal breach of trust
hrmexpress 