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Director’s salary covered under ESI

by Khushi Mehta — last modified Nov 13, 2010 12:32 PM

Employee’s State Insurance (ESI) Act, 1948 is applicable to the factories, as defined under Factories Act, 19481. At present employees drawing salary/wages upto Rs. 10,000 per month are eligible for coverage under the Act.2

In the case of ESIC v. Haryana Biological (P) Limited, it was reinstated that, Directors drawing salary within limits prescribed under the Act are covered under the Act. Directors drawing below such prescribed salary also need be considered while computing minimum number of employees required for coverage under the Act.

 

Source: ESIC v. Haryana Biological (P) Limited (LLR P&H HC 38)

 

References:

1Appropriate Government has been enabled to extend the Act to other industrial, commercial, agricultural or other establishments.

2Members of Army, Navy and Air Force, Apprentices and Partners of firms (ESIC v. Ramanuja Match Industry (AIR 1985 SC 278)) even if they draw salary of less than Rs. 10,000 per month, are specifically excluded from coverage under the Act.

 

Also Check: Other Legal Aspects

 

 

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