ESIC – conveyance for contribution – clarification on instruction dated 8/11/21 in SLP No.811/2021 titled ESIC versus TEXMO Industries
Posted Date: 16th August 2022
Relating to which Act: Employees’ State Insurance (ESI) Act, 1948
Type: ESIC – Dy Director Revenue Notification No. T 11 /13/56/2/2020 Rev II dated 16/8/2022
Pertains to employers and insured members of ESIC
Relevance of this news: Karma Management Global Consulting Solutions Pvt. Ltd is in the business of Payroll, Outsourcing, and Regulatory Compliances from its inception in 2004 and since then, has brought in a lot of efficiencies and technological upgradations with experts on its roll, to ease the hassles of Payroll Processing, Temp Staffing On-boarding, Regulatory and Payroll compliances by providing customized solutions to all its elite clients.
Karma Global handles the ESIC work of hundreds of clients and in this respect, there is a lot of work to be done on the monthly salary of employees whereby a certain percentage of amount from the total monthly allowances, is paid as a contribution to ESIC against medical services rendered by them to the Insured and his family.
Now there has been an order from the Supreme Court that conveyance allowance is not to be included as a part of the consideration of contribution and the order has been retrospective from 8/3/2021 which means that ESIC will have to work out backward from this date on the refund of proportionate contribution to the employer as well as to the insured employees.
There is also a legal opinion given by Harish Kumar Saran, Advocate on record, Supreme Court of India who says that ESIC has to work out the modalities for the implementation of the same from this date of 8/3/2021.
Subject: ESIC – conveyance for contribution – clarification on instruction dated 8/11/21 in SLP No.811/2021 titled ESIC versus TEXMO Industries
For greater details, attached is the notification