Conveyance allowance not a part of wages to compute ESI contribution
The Hon’ble Supreme Court has passed an Order recently (ESIC v/s Texmo Industries (Madras) dated 08 March 2021) stating that conveyance allowance or traveling allowance does not fall under the definition of ESI wages.
This has been affirmed as a reported judgment by the Apex Court.
So far, following the judgment passed by Hon’ble High Court of Karnataka, the conveyance allowance was considered as a part of wages and was being included for ESI contribution calculation and to arrive at salary ceiling of Rs. 21,000 per month.
Going forward, the employers have to exempt conveyance allowance from ESI contributions and for computing the ceiling limit of Rs. 21,000 per month.
However, this is subject to further appeal of EPFO before the Apex Court if any.
The highlighted points in this reported judgment copy is shared here below.
ESIC has decided to relax the eligibility condition for the Atal Beemit Vyakti Kalyan Yojana Scheme. As per this relaxation, the Insured Person should have been in insurable employment for a minimum period of 12 months immediately before his/her unemployment and should have contributed for not less than 78 days in the one completed contribution period in 12 months immediately preceding the unemployment.
ESIC has issued a circular regarding the provision for seeding of UAN data in Employer's Module of Corporation. The Employers can use the screen to enter the UAN data of Insured Persons(IPs) in the Insurance/Panchdeep Module.
ESI circular on documents submission for late registration
01 Nov, 2021
ESIC through its circular has notified that employers' requesting for change in date of registration have to submit their relevant documents to the concerned RO/SRO in prescribed proforma within fifteen days of the issue of show cause notice. If the employers fail to submit the documents within the due date, the late registration application may be rejected, and the date of registration will be deemed as the date of appointment.
ESI provisions to take effect in certain districts of Maharashtra
27 Oct, 2021
ESI notifies that the provisions of Chapter IV, V, and VI shall come into force in all the areas of Ahmednagar, Jalna and Yavatmal districts in the State of Maharashtra with effect from 01 November 2021.
ESI provisions enforced in certain districts of Assam
27 Sep, 2021
The ESI Corporation, with effect from 01 October 2021, has implemented the provisions of Chapter IV (Contribution), Chapter V (Benefits), Chapter VI (Adjudication Of Disputes and Claims) in all the areas of Baksa, Charaideo, Dima Hasao, Hailakandi, Hojai and Kokrajhar districts of Assam.
ESIC Provisions comes to effect In Mayiladuthurai, Vellore, Ariyalur Districts Of Tamil Nadu
31 Aug, 2021
ESIC has implemented the provisions towards Chapter IV (Contribution), Chapter V (Benefits), Chapter VI (Adjudication Of Disputes and Claims) effective from 1st day of September, 2021 in all the areas of Mayiladuthurai, Vellore and Ariyalur in the State of Tamil Nadu.
ESI will pay the periodic payments to the eligible dependant family members if the Insured Person’s death is due to COVID 19. This scheme is effective from 24 March 2020 for a period of 2 years.
The draft notification for the ESIC COVID-19 Relief Scheme was published in the Gazette on 18th June 2021 and suggestion received were considered. Accordingly, the ESIC notified the Scheme now.
ESI benefits to casual, contractual employees of Municipal Corporations, Councils at NCT Delhi
28 Jul, 2021
The Ministry of Labour and Employment extends the ESI applicability to all the casual and contractual employees of the Municipal Corporations, Councils of NCT Delhi where the ESI provisions has been already brought into force.
ESI announces the coverage for casual and contractual employees of municipal bodies
10 Jun, 2021
The Ministry of Labour and Employment has announced the decision to extend ESI coverage to all casual and contractual workers working the municipal bodies. The coverage shall be extended to those casual and contractual employees, agencies, establishments which are within the implemented areas already notified under the ESI Act.
Additional benefits under ESI and EPF EDLI schemes for workers’ family dependants
30 May, 2021
The family dependants of Insured Persons (IP) under the ESI scheme, who have been registered in the online portal of the ESIC prior to their diagnosis of COVID disease and subsequent death due to the disease, will be entitled to receive the same benefits and in the same scale as received by the dependents of insured persons who die as a result of employment injury, subject to certain conditions.
Under the EPFO’s Employees’ Deposit Linked Insurance (EDLI) Scheme all surviving dependent family members of the members of this scheme are eligible to avail benefits of EDLI in case of death in harness of the member.
ESI provisions partially come into force in Erode District, Tamil Nadu from 01 June 2021
28 May, 2021
TWith effect from 01 June 2021, the provisions of Contributions, Benefits, and Adjudication of Dispute and Claims under chapter IV, V, and VI of the ESI Act, respectively are enforced by the Central Government in Erode District of Tamil Nadu to extend the benefits in this COVID 19 pandemic to face the requirements.
ESIC Pensioners Medical Scheme - Revised Guidelines
25 May, 2021
ESIC has published revised guidelines for entry to the ESIC's Pension Medical Scheme (PMS), regulation of Fixed Medical Allowance payment, eligibility of Super Speciality Medical Treatment, modalities for providing medical treatment to the beneficiaries, provision of tie-up arrangement with private hospitals, etc.
ESI provisions partially come into force in West Bengal
21 May, 2021
With effect from 01 June 2021, the provisions of Contributions, Benefits, and Adjudication of Dispute and Claims under chapter IV, V, and VI of the ESI Act, respectively are enforced by the Central Government in Alipurduar, Cooch Behar, Kalimpong, Purulia, North & South Dinajpur Districts of West Bengal to extend the benefits in this COVID 19 pandemic to face the requirements.
The enabled provisions of ESI Act are:
Chapter IV - provisions of Contributions except sections 44, 45
Chapter V - provisions of Benefits
Chapter VI - provisions of Adjudications of Dispute and Claims except sections 76(1), 77,78,79 and 81.
The medical benefits (as laid down in Regulation 95-A of the Employees’ State Insurance (General) Regulations and the West Bengal Employees' State Insurance (Medical Benefit) Rules, 1955)shall be extended to the families of insured persons in the entire area of Alipurduar, Cooch Behar, Kalimpong, Purulia, North & South Dinajpur Districts of West Bengal.
ESIC reaches out to its beneficiaries to provide medical care and relief during COVID 19 pandemic
29 Apr, 2021
The Insured Persons (IP), under the ESI Act can seek free medical care in its COVID 19 dedicated hospitals, reimbursement of expenditure for treatment taken in any private institution, sickness benefit for the period of abstention from work at 70% of average daily wages for 91 days, remedial reliefs if they become unemployed in this pandemic and cash relief in the event of unfortunate demise.
ESIC extends relaxations in eligibility conditions in Atal Beemit Vyakti Kalyan Yojana for 6 months
06 Apr, 2021
The eligibility conditions for the Atal Beemit Vyakti Kalyan Yojana (ABVKY) Scheme are further extended for a period of 6 months from 01 January 2021 to 30 June 2021 with same terms and conditions as notified earlier.
ESIC publishes list of the fully notified, partially notified, and non-notified areas
01 Apr, 2021
ESI Corporation, in continuation to its previous circular of November 2020, notified the updated list of the fully notified, partially notified, and non-notified areas in the states and union territories.